Schnitzer reports an increase in earnings per share for Q4 2017
Schnitzer reports an increase in earnings per share for Q4 2017
<![CDATA[
Photo: Dreamstime
Schnitzer Steel Industries Inc., headquartered in Portland, Oregon, has announced preliminary results for its fourth quarter of fiscal 2017, ended Aug.31, 2017. The company says it expects fourth quarter earnings per share from continuing operations to be in the range of 62 cents to 65 cents. Adjusted earnings per share are expected to be in the range of 60 cents to 63 cents. The company reported earnings per share of 59 cents for the fourth quarter of fiscal 2016 and adjusted earnings per share of 60 cents, both of which included a benefit of 21 cents per share from an insurance reimbursement of $6 million.
In the fourth quarter of fiscal 2017, Schnitzer completed the previously announced integration of its steel manufacturing and metals recycling operations in Oregon into a single operating segment, Cascade Steel and Scrap (CSS). The company’s Auto and Metals Recycling (AMR) performance now excludes the Oregon metals recycling operations as a result.
The company says AMR is expected to generate operating income in the range of $23 million to $24 million and operating income per ferrous ton in the range of $27 to $28 for the fourth quarter of fiscal 2017, which compares favorably to operating income of $19 million and operating income per ferrous ton of $23 in the fourth quarter of 2016. Operating income per ferrous ton in the fourth quarter of fiscal 2017 was adversely affected by sharply higher ferrous market prices in August that led to increases in the cost of raw materials, compressing margins on shipments contracted earlier in the quarter, Schnitzer says. Average ferrous net selling prices are expected to increase approximately 25 percent compared with last year’s fourth quarter, and ferrous sales volumes are expected to be approximately 7 percent higher, the company says. Average nonferrous net selling prices are expected to increase approximately 7 percent from the prior year quarter, and nonferrous sales volumes are expected to be 8 percent higher.
CSS is expected to generate operating income of approximately $8 million for the fourth quarter of fiscal 2017, including a gain on sale of an Oregon metals recycling joint venture investment of approximately $1 million. This compares favorably with prior-year fourth quarter operating income for CSS of $3 million, which included an asset impairment charge of $2 million in the steel manufacturing operations. Operating performance in the fourth quarter of fiscal 2017 primarily reflects the benefits from higher shipments of finished steel products, an expansion of finished steel metal spreads and productivity improvements, including initial synergies from the integration with the Oregon metals recycling operations, the company says. CSS’ average finished steel selling prices are expected to increase approximately 7 percent, and finished steel sales volumes are expected to increase approximately 20 percent compared with the prior year fourth quarter.
For fiscal 2017, total ferrous volumes, including external sales by AMR and CSS, and transfers to company steel mill, are expected to increase by 10 percent compared with fiscal 2016. AMR’s operating income per ferrous ton is expected to be $29 on a reported and adjusted basis for fiscal 2017 compared with reported operating income per ton of $8 and adjusted operating income per ton of $16 in fiscal 2016.
Consolidated financial performance in the fourth quarter is expected to include corporate expense of approximately $10 million, Schnitzer says, an increase compared with the prior year quarter primarily because of the $6 million insurance reimbursement in the fourth quarter of fiscal 2016. For fiscal 2017, the company’s effective tax rate is expected to be approximately 2.7 percent.
For the fourth quarter, the company says it expects to report operating cash flow of approximately $49 million. Total debt was $145 million as of Aug. 31, 2017, which is a reduction of $39 million, or 21 percent, compared with May 31, 2017. Debt, net of cash, was $138 million as of Aug. 31, 2017, which is a reduction of $31 million, or 19 percent, compared with May 31, 2017, Schnitzer says.
The company says it will report the financial results for its fourth quarter and fiscal year Tuesday, Oct. 24, 2017. The webcast of the call and the accompanying slide presentation can be accessed on Schnitzer’s website at www.schnitzersteel.com/events. Tamara L. Lundgren, president and chief executive officer, and Richard D. Peach, senior vice president, chief financial officer and chief of corporate operations, will be on the call.
]]>
Source: Recycling Today
Schnitzer reports an increase in earnings per share for Q4 2017
<![CDATA[Photo: DreamstimeSchnitzer Steel Industries Inc., headquartered in Portland, Oregon, has announced preliminary results for its fourth quarter of fiscal 2017, ended Aug.31, 2017. The company says it expects fourth quarter earnings per share from continuing operations to be in the range of 62 cents to 65 cents. Adjusted earnings per share are expected to be in the range of 60 cents to 63 cents. The company reported earnings per share of 59 cents for the fourth quarter of fiscal 2016 and adjusted earnings per share of 60 cents, both of which included a benefit of 21 cents per share from an insurance reimbursement of $6 million. In the fourth quarter of fiscal 2017, Schnitzer completed the previously announced integration of its steel manufacturing and metals recycling operations in Oregon into a single operating segment, Cascade Steel and Scrap (CSS). The company’s Auto and Metals Recycling (AMR) performance now excludes the Oregon metals recycling operations as a result. The company says AMR is expected to generate operating income in the range of $23 million to $24 million and operating income per ferrous ton in the range of $27 to $28 for the fourth quarter of fiscal 2017, which compares favorably to operating…