TORONTO Schnitzer Steel
Industries Inc. saw fiscal third-quarter profits squeezed as
economic woes in the United States and globally bit into
The Portland, Ore.-based
recycler, scrap exporter and steelmaker also offered a cautious
outlook, noting that prices for recycled metals had "declined
significantly" since the end of the quarter, a trend that could
hurt fiscal fourth-quarter results.
Schnitzer posted net income of
$11.2 million for its fiscal third quarter, down 66 percent
from $33 million in the same period last year, on revenue that
slid 10.3 percent to $879.9 million. For the nine months ended
May 31, the companys net income plunged 65.8 percent to
$27.9 million from $81.6 million a year earlier despite an
8.4-percent increase in revenue to $2.58 billion.
"In our metals recycling
business and steel manufacturing business, results reflected
relatively stable volumes and a flat selling-price environment.
However, all of our divisions continue to be impacted by
challenging market conditions resulting from the global
economic slowdown," Schnitzer president and chief executive
officer Tamara Lundgren said in a statement Thursday.
business generated operating earnings of $17.8 million in the
fiscal third quarter, down 61 percent from $45.7 million a year
ago, on revenue that slid 10.6 percent to $786.5 million from
$879.3 million. Operating margins suffered because of a "weak
economic environment" in the United States, Schnitzer said.
Ferrous scrap revenues dipped
11.5 percent to $621.9 million in the latest fiscal quarter
from $702.8 million a year earlier as average ferrous scrap
selling prices fell 3.6 percent to $424 per ton from $440 in
the same comparison.
Operating earnings by
Schnitzers steel manufacturing business plunged 92.7
percent to $253,000 in the fiscal third quarter from $3.5
million a year ago on revenue that slipped 13.5 percent to
$78.6 million from $90.9 million.
The companys auto parts
business reported operating earnings of $12.5 million in the
latest fiscal quarter, down 27.6 percent from $17.3 million a
year earlier, on revenue that fell 4.5 percent to $82.9 million
from $86.9 million.