Schnitzer Steel Announces Q2 Outlook

Schnitzer Steel Industries, Inc. today announced its market outlook for Q2 of fiscal 2013 ended February 28, 2013. The Company expects to report a sequential improvement in its consolidated financial performance in the second quarter of fiscal 2013. For the second quarter, fully diluted earnings per share are expected to be in the range of $0.20 – $0.26 before restructuring charges.

In terms of their metals recycling business, ferrous export selling prices strengthened throughout the quarter, with prices for February shipments approximately $40 per ton higher than shipments at the end of the first quarter. Domestic selling prices weakened slightly toward the end of the quarter.

In their auto parts business, Schnitzer Steel has indicated that higher commodity prices, stronger car purchases and the incremental volume contribution of acquisitions are expected to result in an increase of approximately 10 percent in revenues from the first quarter of fiscal 2013.

In terms of their steel manufacturing business, average selling prices are forcasted to increase slightly from the first quarter while sales volumes are expected to be approximately 25 percent lower than the first quarter. Higher costs for raw materials, a lower utilization rate resulting from planned maintenance and a typical seasonal slowdown in demand during the quarter are expected to result in SMB operating income of approximately $1 million.