“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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV