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.,
"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
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.