In our Auto Parts Business, the sharp drop in commodity prices is expected to result in a decline of 15-20% in revenues from the third quarter of fiscal 2012. Operating margins in the fourth quarter are expected to approximate break-even, with over half of the decline from the third quarter due to the significant negative impact from average inventory accounting. The remainder of the decline is expected to result from the effects of falling commodity prices on scrap and core revenues and seasonally lower parts sales. For fiscal year 2012, our Auto Parts Business is expected to generate an operating margin of approximately 10% on an aggregate 340 thousand cars purchased.In our Steel Manufacturing Business, volume increases of approximately 15% are expected to be more than offset by a decline in average selling prices of slightly more than 5% from the third quarter. The lower selling prices, combined with unscheduled downtime and an adverse impact of average inventory accounting, are expected to result in an operating loss for the division of approximately $3 million. For fiscal year 2012, operating performance in our Steel Manufacturing Business is expected to be slightly below break-even.
Schnitzer Provides Market Outlook For Fourth Quarter Of Fiscal 2012 And Announces Significant Cost Reductions
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