Nonferrous and Ferrous Market Conditions Reflected Diverging Trends: Radius Recycling

SEATTLE (Scrap Monster): Portland, Oregon-based Radius Recycling reported net loss in its 2024 fiscal year third quarter ending 31^st May, 2024.

The company reported a loss per share from continuing operations of $(6.97) and a net loss of $(199) million during the quarter. This compares with a reported loss per share of $(1.19) and net loss of $(34) million in the second quarter of fiscal 2024. The Q3 results include a goodwill impairment charge of $216 million or $(6.21) per share net of taxes, the news release said.

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The adjusted EBITDA reported an improvement from $3 million in the prior quarter to $9 million in Q3 this fiscal. The improvement was mainly on account of higher nonferrous and ferrous sales volumes, benefits from cost reduction and productivity improvements, and higher insurance recoveries, which were partially offset by lower ferrous selling prices and compressed metal spreads.

Radius Recycling reported adjusted loss per share from continuing operations of $(0.59) in the third quarter compared to an adjusted loss per share of $(1.04) in the second quarter of fiscal 2024.

Commenting on the results, Tamara Lundgren, Chairman and Chief Executive Officer said that the market conditions continued to remain challenging during the quarter. The nonferrous and ferrous market conditions reflected diverging trends, she added.