Schnitzer Steel misses by $0.24, misses on revs
Reports Q2 (Feb) loss of $0.33 per share, excluding non-recurring items, $0.24 worse than the Capital IQ Consensus Estimate of ($0.09); revenues fell 29.9% year/year to $439 mln vs the $564.1 mln consensus.
The Company has commenced two strategic initiatives:
The Company has commenced two strategic initiatives:
- (i) A cost reduction, capacity reduction and productivity improvement initiative which, in the aggregate, is intended to improve financial performance by $60 million annually by the end of 2016; and
- (ii) The integration of the Auto Parts and Metals Recycling Businesses into a single division by the end of fiscal 2015 which is intended to further optimize the efficiencies in our operating platform, enable additional synergies to be captured throughout our supply chain and global sales channel, and more effectively leverage our shared services platform.
- "significantly lower prices have been driven by softer global steel markets due to overproduction, the strong dollar, lower iron ore prices, and weaker demand in end-markets, including the energy, agriculture and mining sectors. In addition, during the quarter our business activity was impacted by harsh winter weather in the Northeast and Midwest which impacted retail sales in our Auto Parts Business and supply flows in our Metals Recycling Business, and by a labor slowdown at the West Coast ports. As a result of all of these factors, year-over-year ferrous sales volumes in Metals Recycling declined by 27% and nonferrous sales volumes declined by 20%."