Schnitzer Steel Industries Posts Q3 Profit

(RTTNews) - Schnitzer Steel Industries Inc.(SCHN) reported that its net income attributable to the company for the third quarter ended May 31, 2016 was $11.00 million or $0.40 per share, compared to a loss of $9.63 million or $0.36 per share in the same quarter last year.

Quarterly earnings per share from continuing operations were $0.41 compared to loss per share from continuing operations of $0.31 in the third quarter of fiscal 2015.

Adjusted earnings per share from continuing operations of $0.46 for the third quarter fiscal 2016. This compared to adjusted earnings per share from continuing operations of break-even for the third quarter fiscal 2015. Analysts polled by Thomson Reuters expected the company to report earnings of $0.18 per share for the third-quarter. Analysts' estimates typically exclude special items.

The latest-quarter adjusted earnings per share excluded the adverse impact of noncash write-off of debt issuance costs, restructuring charges and other exit-related costs, and other items.

Revenues for the quarter declined to $351.60 million from $467.31 million in the prior year. Wall Street expected revenues of $356.41 million.

Finished steel sales volumes increased 21% sequentially on stronger seasonal demand. Compared to the prior year third quarter, volumes were 6% lower primarily due to the impact from imported steel products. Lower rolling mill utilization reflected the optimization of production, inventory management and manufacturing downtime.

Average net sales prices for finished steel products approximated second quarter levels. Compared to the prior year third quarter, average prices were 19% lower, reflecting the impact on finished steel selling prices from steel imports and lower raw material costs.

The company is on schedule to deliver the additional $30 million of annual cost savings which were announced in the second quarter. During the third quarter, the Company achieved a quarterly run rate of $6 million related to such cost savings, with the balance expected to be delivered by the end of fiscal 2017. The Company incurred restructuring charges and other exit-related costs of $1 million in the third quarter of fiscal 2016.