Schnitzer Steel posts $2M fiscal 1Q loss on costs
Schnitzer Steel posts $2M fiscal 1st-qtr loss on restructuring charges, steep drop in revenue
PORTLAND, Ore. (AP) -- Schnitzer Steel posted a $2 million loss for the first quarter Tuesday, dragged down by restructuring charges and weak demand.
For the quarter ended Nov. 30, the company's loss amounted to 6 cents per share, compared with a profit of $7 million, or 25 cents per share, in the same quarter last year.
Excluding restructuring charges, the company posted an adjusted loss of 2 cents per share.
Revenue fell 27 percent to $593 million from $812 million.
Analysts, on average, expected a loss of 7 cents per share on $616.8 million, according to a FactSet poll.
Schnitzer said that during the recent quarter, sale prices for recycled ferrous materials fell as a result of lower domestic demand and weak global economic conditions. Meanwhile, scrap metal supplies continued to be hurt by lower U.S. economic growth increasing the company's costs.
The combination of those factors reduced the company's sales volumes and profitability, Schnitzer said.
Revenue from the company's metals recycling business dropped 32 percent to $494.4 million, while revenue from its auto parts business dropped 27 percent to $592.8 million.
Shares of Schnitzer Steel Industries Inc., based in Portland, Ore., fell $1.31, or 4 percent, to $30.59 in morning trading.
