Schnitzer Steel announces completed integration of its auto parts and recycling segments

Schnitzer Steel Industries, Inc. announced Wednesday the completion, during the fourth quarter of fiscal 2015, of the integration of its Auto Parts Business and Metals Recycling Business into a single Auto and Metals Recycling Business (AMR). In accordance with the revised operating structure, the Company plans to report financial segment and operating information for the combined AMR business for the fourth quarter and fiscal 2015, including comparable historical periods in its earnings release. In advance of its full earnings release, Schnitzer is also providing preliminary results for its fourth quarter of fiscal 2015. AMR is expected to generate operating income of approximately $16 million, which includes an estimated adverse impact from average inventory accounting of $5 million. Ferrous and nonferrous sales volumes are expected to be in line sequentially, while car purchase volumes for auto parts stores are expected to be approximately 10 percent higher than third quarter levels. In Steel Manufacturing Business, slightly higher sales volumes combined with higher utilization rates are expected to generate operating income in the range of $5 to $6 million. Schnitzer expects fourth quarter of fiscal 2015 adjusted earnings per share from continuing operations to be in the range of $0.27-$0.30 which excludes restructuring charges of approximately $0.05. Reported earnings per share from continuing operations are expected to be in the range of $0.37-$0.40. Reported earnings per share are expected to be higher than adjusted earnings per share due to the allocation of full year tax benefits to the fourth quarter, partly offset by restructuring charges.