Schnitzer Steel's Robust Q3 Earnings Top All Estimates

SEATTLE (Scrap Monster): Schnitzer Steel Industries, Inc. announced results for the third quarter of fiscal 2019 ending May 31^st, 2019. The earnings beat analyst estimates, driven by notable jump in ferrous and nonferrous sales volumes by Auto and Metals Recycling (AMR) division and finished steel volumes by Cascade Steel and Scrap (CSS) division.

The company’s earnings per share from continuing operations reported sequential improvement from 0.46 to $0.56, hitting the upper end of the earlier guidance provided by the company. Also, adjusted earnings per share in Q3 were $0.63, as compared with $0.48 during the second quarter of fiscal 2019.

The AMR segment reported operating income of $29 million, compared with $22 million in second quarter. The ferrous and nonferrous sales volumes were up by 9% over the prior quarter. The ferrous and nonferrous average net selling prices too surged higher significantly by 2% and 7% respectively.

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The CSS segment’s operating income totaled $8 million, as compared with the operating income of $6 million in second quarter, primarily driven by higher finished steel sales volume, which were up by 38%. Improved supply flows resulted in 51% sequential jump in recycling revenues. Meantime, the average net selling prices for finished steel products witnessed a decline of 5% over the previous quarter.

Tamara Lundgren, President and Chief Executive Officer, in a statement, noted that the company delivered another quarter of strong operating performance. It also generated strong cash flow and achieved significant reduction in debt during the quarter. The company looks forward to expanding its product portfolio and broaden its customer reach, Lundgren added.