Schnitzer Steel Reported Net Loss in First Quarter Fiscal 2020

SEATTLE (Scrap Monster): Portland, Oregon-based Schnitzer Steel reported net loss per share during the first quarter of fiscal 2020 ended November 30, 2019. Meantime, the company expects to benefit from improved market conditions and the execution of strategic initiatives during the full fiscal year.

The company press release points to a net loss per share from continuing operations of $0.26 and an adjusted loss per share of $0.17. This represents sequential decline from Q4 2019, when reported and adjusted earnings from continuing operations were $0.41 and $0.42 respectively. It must be noted that the reported and adjusted earnings in Q1 fiscal 2019 stood at $0.57 and $0.59 per share respectively.

The substantial decline in ferrous selling prices during the first two months of the quarter impacted the volumes and margins.

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The company’s Auto and Metals Recycling (AMR) segment reported operating loss of $2 million. The ferrous sales volume plunged by 19% over the sequential quarter. The average ferrous net selling prices saw a decline by 18%.

On the other hand, the Cascade and Steel Scrap (CSS) segment delivered operating income of $4 million. The finished steel sales volumes were down by 15% from the prior quarter, mainly on seasonal demand-drop. The average net selling prices for finished steel products recorded 5% sequential decline.

Tamara Lundgren, President and Chief Executive Officer commented that various strategic initiatives under implementation provide the company with good growth opportunities in future, thereby paving way for more capital returns to its shareholders.