Schnitzer Steel Industries Inc.s metals recycling
business recorded operating losses of $312 million for its
fiscal year ended Aug. 31, in contrast to earnings of $64
million the previous year, on a 25-percent drop in revenue to
$2.21 billion, which the company said will result in further
layoffs and restructuring in the coming months.
"In light of continued
market challenges, we are implementing additional
cost-reduction and productivity improvement initiatives, which
are targeted to further reduce our annual operating expenses by
$30 million with approximately 70 percent expected to benefit
fiscal 2014 performance and the full benefits achieved in
fiscal 2015," president and chief executive officer Tamara
Lundgren said in a statement Oct. 29.
A similar exercise in
its 2013 fiscal year reduced annual operating expenses by $25
million and cut 300 jobs.
The measures will
primarily target the Portland, Ore.-based companys metal
recycling operations and will involve a combination of
"reducing organizational layers, productivity improvements,
procurement savings, internal synergies and other operating
anticipates incremental restructuring charges of $3 million to
be incurred in fiscal 2014.
Schnitzer reported a
27-percent drop in ferrous scrap recycling revenue during its
2013 fiscal year to $1.68 billion from nearly $2.3 billion the
previous year, with shipments falling to 4.3 million long tons
at an average price of $358 per ton from 5.1 million tons at
$415 per ton in fiscal 2012. Nonferrous recycling revenue
declined 18.4 percent to $501.7 million from $614.5 million in
the same comparison.
posted a net loss for the fiscal year, with the weaker
recycling segment results offsetting gains in its steel
manufacturing segment (
amm.com, Oct. 29).