Schnitzer Steel Posts Large 4Q Profit Decline

PORTLAND, Ore. (AP) — Schnitzer Steel Industries Inc. said Tuesday it posted a 92 percent decline in its fourth-quarter profit and registered a loss for the full year as it struggled with a steep downturn in metals recycling, auto parts and steel manufacturing.

The Portland, Ore., company beat Wall Street estimates, but its shares fell sharply in morning trading.

Schnitzer reported net income of $10.3 million, or 36 cents per share, for the fourth quarter, compared with $126.4 million, or $4.38 per share, in the same quarter last year.

Analysts surveyed by Thomson Reuters expected Schnitzer Steel to earn 31 cents per share.

Revenue for the quarter ended Aug. 31 was $556.2 million, down 58 percent from $1.31 billion.

Analysts expected revenue to be $520 million.

Tamara Lundgren, president and CEO, said the weak U.S. economy continues to negatively impact demand for finished steel products and recycled metals.