Economy
January 7, 2015
Schnitzer Earnings Take Hit From Scrap Pricing
Written by Sandy Williams
Low scrap prices and declining exports took a toll on earnings results for Schnitzer Steel Industries. Export selling prices for ferrous scrap declined by $80 per ton, or 20 percent, while domestic prices dropped $60 per ton, or 15 percent. The declines were the steepest seen by Schnitzer since 2012.
The company reported a net loss of $2 million for first quarter 2015 in comparison to a profit of $6 million in the previous quarter and a net loss of $6 million a year ago. Revenue of $556 million was down 5 percent year over year and 20 percent from the preceding quarter. Steel manufacturing and auto part business reported improved revenues y/y, but both segments and metals recycling showed revenue losses compared to the previous quarter.
