Schnitzer portrays good financial quarter just concluded

Lofty ferrous scrap pricing seems to have drawn out enough material to exceed the expectations of Oregon-based publicly traded recycler Schnitzer Steel Industries Inc.

In a June 1 filing with the Securities and Exchange Commission (SEC), the scrap recycling, auto salvage and electric arc furnace (EAF) steelmaking firm states it “anticipates its ferrous and finished steel sales volumes for the third quarter to be higher than the outlook it provided during its second quarter earnings call on April 7, 2021.”

Continues the company, “Ferrous volumes are now expected to be approximately 25 percent higher and finished steel volumes approximately 10 percent higher than the respective volumes reported for its second quarter of fiscal 2021.” The company’s 2021 fiscal third quarter ran from March 1 to May 31 of this year.

Regarding its margin in the ferrous scrap sector, Schnitzer states, “For the third quarter, net income per ferrous ton is expected to be in a range between the $47 achieved in the second quarter of fiscal 2021 and up to 5 percent higher.”

The good market conditions mean “adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) per ferrous ton for the third quarter is expected to be in a range between the $73 achieved for the second quarter of fiscal 2021 and up to 5 percent higher.”

Schnitzer also says it experienced a fire on May 22 at its Cascade Steel Rolling Mill in McMinnville, Oregon. The company adds, “Damage from the incident was limited to the mill’s melt shop, with no injuries and no impact to other buildings or equipment. Given that the incident occurred near the end of the company’s fiscal third quarter, the company does not expect this matter to have a significant impact on its results of operations for that quarter.”

Regarding the damaged melt shop, Schnitzer adds, “The company is still assessing the time required for repairs and will provide more information on this matter, including insurance coverage, during its fiscal third quarter earnings webcast and conference call on June 30.”