“Through our ongoing integration and continuous improvement initiatives, the Company has been executing on reductions to SG&A costs by extracting synergies across the organization," said Lundgren. “Our capital deployment strategy will continue to prioritize strategic growth initiatives which enable us to enhance our market position and operational performance, maintain a healthy capital structure, and deliver tangible shareholder returns through dividends and share repurchases."
Key business drivers during the second quarter of fiscal 2012 as compared to the first quarter of fiscal 2012:
- Metals Recycling Business (MRB) ferrous volumes increased 10% and nonferrous volumes increased 23% from the first quarter. Operating income increased 52% due to higher sales volumes and lower selling prices, general and administrative costs (SG&A).
- Auto Parts Business (APB) revenues decreased 7% on softer commodity prices which reduced selling prices for scrap. Operating income decreased 17% primarily due to tighter supply markets which compressed margins.
- Steel Manufacturing Business (SMB) generated a second quarter operating loss of $1 million due to slightly lower utilization levels and planned maintenance costs.
Metals Recycling Business
|Summary of Metals Recycling Business Results|
|($ in millions, except selling prices; Fe volumes 000s long tons; NFe volumes M LB)|
|Avg. Net Ferrous Sales Prices ($/LT) (1)||$||421||$||432||(3||)%||$||419|
|Avg. Net Nonferrous Sales Prices ($/LB) (1)||$||0.91||$||1.00||(9||)%||$||1.04|
|(1) Sales prices are shown net of freight|
Sales Volumes: Ferrous sales volumes were 1.4 million tons, an increase of 10% compared with the first quarter. Nonferrous sales volumes were 169 million pounds, an increase of 23% compared to the first quarter, primarily due to benefits from higher production and timing of shipments.Export customers accounted for 78% of total ferrous sales volumes. Our ferrous and nonferrous products were shipped to 17 countries in the second quarter. The top ferrous export destinations were Turkey, South Korea and China. The top nonferrous markets were China and the United States.