PORTLAND, Ore. (AP) â¿¿ Schnitzer Steel Industries Inc. said Thursday that its fiscal third-quarter net income slid 66 percent as it deals with higher costs and lower selling prices in its metals recycling unit .
But the company's earnings beat Wall Street's forecast and its share rose in midday trading.
Last month Schnitzer cautioned that global demand for recycled metals was still weak and that it was experiencing increased costs for raw materials and freight.
The Portland, Ore., company is one of the largest exporters of recycled ferrous metals in the U.S. It also operates automotive parts and steel manufacturing divisions.Schnitzer earned $11.2 million, or 40 cents, per share, for the three months ended May 31 compared with $33 million, or $1.18 per share, a year ago. Analysts expected earnings of 30 cents per share, according to a FactSet survey. Revenue dropped 10 percent to $879.9 million from $981.1 million. Analysts expected revenue of $891.9 million. Schnitzer said that the metals recycling unit's average nonferrous sales price was 97 cents per pound compared with $1.12 per pound in the prior-year period. The company's stock rose 2 cents to $24.91 in midday trading. They have traded in a 52-week range of $22.78 to $59.06.