Schnitzer Reports Second Quarter Fiscal 2012 Financial Results

Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today reported diluted earnings per share from continuing operations of $0.35 for its fiscal 2012 second quarter ended February 29, 2012. This compares with diluted earnings per share from continuing operations of $0.25 in the first quarter of fiscal 2012. The Company generated $128 million in operating cash flow during the second quarter and reduced total debt to total capital to 27%, down from 31% at the end of the first quarter of fiscal 2012.

On April 3, 2012 Schnitzer's Board of Directors declared a dividend of $0.1875 per common share, which represents an increase in the annual cash dividend to $0.75 per share from the prior annual dividend of $0.07 and reflects Schnitzer's ability to consistently generate strong cash flows which can support both strategic investments for profitable growth and provide enhanced distributions to shareholders. The quarterly dividend at the new rate will be payable on May 31, 2012, to shareholders of record on the close of business on May 17, 2012. This marks the 72 nd consecutive quarter that the Company has paid a dividend since it became a public company in 1993.
Summary Results from Continuing Operations
($ in millions, except per share amounts)
2Q12   1Q12   % Change   2Q11
Revenues $ 887 $ 812   9 %   $ 722
Operating Income 18 15 20 % 46
Income from continuing operations attributable to SSI* 10 7 37 % 31
Net income per share from continuing operations attributable to SSI** $ 0.35 $ 0.25 37 % $ 1.10
* Excludes income attributable to noncontrolling interests
** Excludes results from discontinued operations

“Export demand for recycled metals improved from the first quarter, driving higher sales volumes for ferrous and nonferrous recycled products. Consolidated performance improved sequentially, although results were impacted by continued tight supply of raw material and significantly lower selling prices in December that carried over from the first quarter. Prices rose on early January shipments but softened during the latter part of the quarter as concerns over the global economy continued and the mild winter weather eased customer concerns regarding availability of materials for sale,” said Tamara Lundgren, President and Chief Executive Officer. “Our Auto Parts Business experienced strong year-over-year growth in revenues due mainly to increased parts sales and admissions, with overall results impacted by softer commodity prices and higher purchase costs for vehicles. Our Steel Manufacturing Business delivered slightly below break-even results, similar to last year, notwithstanding lower utilization due to planned maintenance.”

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