NEW YORK Schnitzer Steel Industries Inc. has invested about $28 million to expand its auto parts business over the past two months.
Schnitzers expansion of its Pick-n-Pull business includes eight acquisitions and two greenfield projects that were all executed after the end of its fiscal first quarter on Nov. 30, the Portland, Ore.-based company said Tuesday.
During a conference call to discuss its quarterly earnings results, Schnitzer senior vice president and chief financial officer Richard Peach said the acquisitions cost $23 million, pegging the greenfield investments at about $5 million.
The company acquired four stores in British Columbia, located in Richmond and Surrey, where it has a metals recycling facility. It also acquired two stores in the Kansas City metropolitan area and two in Massachusetts.
The companys greenfield projects are located in Calgary, Alberta, and Springfield, Mo., Schnitzer said.
"These new stores will increase the number of stores by 20 percent and are consistent with our growth initiatives in the auto parts business, which maximizes value throughout the automotive recycling process while enhancing ferrous and nonferrous supply for our metals recycling business," president and chief executive officer Tamara Lundgren said in a report released with the companys earnings.
Schnitzers auto parts business operated in 51 locations during the three months ended Nov. 30, it said.
During the fiscal first quarter, the business generated revenue of $69.6 million, down 17.2 percent from the nearly $84.1 million in the year-ago quarter. The business purchased 79,000 cars during the quarter, down 7 percent from 85,000 cars in the same comparison.
The businesss operating income was severely hit, tumbling 39.1 percent to $6.4 million from $10.4 million in the same period a year earlier.