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Schnitzer Steel Industries Posts 2Q Loss

The Associated Press

PORTLAND, Ore. (AP) — Schnitzer Steel Industries Inc. posted a fiscal second-quarter loss Thursday as the recession continued to pound demand for steel products.

The Portland, Ore., company said it lost about $7 million, or 25 cents per share, compared with a profit of $35.9 million, or $1.25 per share, in the year-ago period.

Analysts surveyed by Thomson Reuters expected Schnitzer Steel to earn 5 cents per share on revenue of $426.6 million.

Revenue for the quarter ended Feb. 28 was $433.6 million, down 42 percent from $751.5 million in the year-ago period.

"The markets in the second quarter remained extremely challenging," said Tamara Lundgren, president and CEO. "The global economic downturn continued and the demand for finished steel products and the raw materials used in making steel remained weak."

In response, Schnitzer Steel said it has cut costs and laid off nearly 500 employees, or 13 percent of the full-time work force, and about 350 contractors.

The company also said it completed four acquisitions in the second quarter, extending its metals recycling operations to Puerto Rico and the West Coast and broadened its auto parts business in California.

In morning trading, shares advanced $3.31, or 10 percent, to $36.26.