Schnitzer Steel Reports Fourth Quarter Net Income
PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 27, 2009--
Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) today reported revenues
of $556 million and net income of $10 million, or $0.36 per diluted
share, for the fiscal fourth quarter ended August 31, 2009. During the
quarter the Company generated $46 million in cash from operations,
bringing the total cash from operations for the fiscal year to $288
million.
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Fourth
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Fourth
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Third
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Fiscal
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Fiscal
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(in millions, except per-
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Quarter
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Quarter
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Quarter
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2009
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2008
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share data)
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2009
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2008
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2009
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Revenues
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$
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556
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$
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1,314
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$
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412
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$
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1,900
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$
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3,642
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Operating Income (Loss)
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$
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16
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$
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200
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($ 6
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)
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($ 58
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)
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$
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402
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Net Income (Loss)
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$
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10
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$
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126
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($ 2
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)
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($ 32
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)
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$
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249
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Diluted EPS
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$
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0.36
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$
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4.38
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($0.05
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)
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($ 1.14
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)
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$
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8.61
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“We are pleased to report that all three operating businesses reported
positive operating income and showed their third consecutive sequential
improvement in quarterly results, resulting in a profitable fourth
quarter,” said Tamara Lundgren, President and Chief Executive Officer.
“The performance by our Metals Recycling Business was driven by
broad-based demand from the export markets, indicative of the economic
recovery and continuing infrastructure-related growth in our primary
export markets in Asia. Sales volumes were strong, just off the record
volumes in the fourth quarter of last year. We were able to increase
these sales volumes and improve profitability despite on-going domestic
challenges in the cost of raw materials and a weak U.S. domestic
economy. Our Auto Parts Business benefited from an improvement in the
flow of scrapped vehicles and higher commodity prices, and our Steel
Manufacturing Business took advantage of customer inventory restocking
to increase production and sales volumes and achieve positive operating
income,” she continued.
“As we look back on fiscal 2009, we see significant accomplishments. For
the year as a whole, the Company utilized its strong cash flow
generation to invest $182 million in capital expenditures and
acquisitions and to repurchase 600,000 shares of its common stock, all
while further lowering its leverage ratio by reducing outstanding debt
by $73 million. Our quick actions to reduce costs and to cut production
output and purchase prices in order to maintain positive metals spreads
allowed us to generate these strong cash flows and to strengthen our
balance sheet, all in the face of a severe economic downturn. We
continued to invest in technology to improve operating efficiencies and
also completed five acquisitions, which expanded our access to supply
and added additional deep water export capability,” added Lundgren.
“Looking ahead to fiscal 2010, we continue to be encouraged by the level
of economic activity in the primary overseas markets served by our
Metals Recycling Business. We expect our October 2nd acquisition in the
Auto Parts Business to enhance our self-service used auto parts platform
while increasing the benefits from vertical integration with our Metals
Recycling Business. To be sure, challenges remain, as the weak U.S.
domestic economy continues to negatively impact both the demand for
finished steel products as well as the flow of recycled metals. However,
we believe our export platform and strong balance sheet have positioned
us well to take advantage of growth opportunities during 2010 and
beyond.”
Metals Recycling Business
The Metals Recycling Business continued to utilize its bi-coastal export
platform to take advantage of improving demand in the world’s developing
economies.
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($ in millions, except selling
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prices; ferrous volume in
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thousands of long tons, non-
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Fourth
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Fourth
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Third
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ferrous volumes in millions of
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Quarter
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Quarter
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Quarter
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Fiscal
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Fiscal
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pounds)
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2009
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2008
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2009
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2009
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2008
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Total Revenues
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$ 452
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$ 1,174
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$ 318
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$1,508
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$3,063
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Ferrous Revenues
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$ 371
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$ 1,038
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$ 268
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$1,249
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$2,591
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Ferrous Volumes (Processing/Trading)
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1,290/0
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1,489/8
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1,037/0
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4,189/0
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4,754/444
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Avg. Net Ferrous Sales Prices ($/LT)(1)
(Processing/Trading)
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$ 251
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$623/590
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$ 223
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$264
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$442/370
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Nonferrous Volumes
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123
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126
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90
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397
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439
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Avg. Net Nonferrous Sales Prices ($/LB)(1)
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$0.63
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$ 1.05
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$ 0.51
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$ 0.61
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$ 1.03
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Operating Income(2)
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$ 21
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$ 182
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$ 6
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$ 13
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$ 357
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(1) Sales prices are shown net of freight
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(2) Includes operating income from joint ventures
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Revenues from the Metals Recycling Business increased 42% over the third
quarter of fiscal 2009, driven by a 24% increase in ferrous sales
volumes and a 13% increase in ferrous net sales prices. Processing
ferrous sales volumes of 1.3 million tons were the second highest
quarterly total in the Company’s history, surpassed only by the record
volumes in the fourth quarter of fiscal 2008. In addition, nonferrous
sales volumes increased 36% and nonferrous net sales prices increased
24%, both compared to the third quarter of fiscal 2009.
Year over year quarterly revenues declined 62%, primarily as a result of
declines of 60% and 13% in ferrous net selling prices and ferrous
processing sales volumes, respectively, and a 40% decline in nonferrous
net sales prices. Fourth quarter nonferrous volumes approximated the
volumes during the same period during fiscal 2008. The year-over-year
decline in quarterly ferrous volumes is primarily related to lower sales
to domestic customers, including the Steel Manufacturing Business. For
full fiscal 2009, export sales volumes from the Company’s processing
facilities exceeded similar volumes during 2008 by 225 thousand tons, or
7%.
Operating income increased 240% over the third quarter of fiscal 2009,
primarily due to the higher ferrous and nonferrous sales volumes and
higher prices for nonferrous materials recovered as a byproduct of the
Company’s shredding processes. During the quarter, while raw material
flows improved, purchase costs increased more than net ferrous selling
prices, limiting the expansion of margins. Operating income declined 89%
compared to the record earnings in the fourth quarter of fiscal 2008 due
to lower volumes and substantially lower margins attributable to more
restricted flows of raw materials and lower nonferrous prices.
Auto Parts Business
The Auto Parts Business recorded its third consecutive sequential
increase in operating income due to higher flows of scrapped vehicles
and improved commodity prices.
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Fourth
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Fourth
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Third
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($ in millions, except
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Quarter
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Quarter
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Quarter
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Fiscal
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Fiscal
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locations)
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2009
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2008
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2009
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2009
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2008
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Revenues
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$
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75
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$
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103
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$
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66
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$
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266
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$
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353
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Operating Income (Loss)
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$
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8
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$
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16
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$
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3
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($3)
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$
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47
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Locations (end of quarter)
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57
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56
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57
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57
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56
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Revenues for the Auto Parts Business increased 14% over the third
quarter of 2009, primarily as a result of higher core and scrap prices
and improved flows of scrapped vehicles which led to higher car
purchases. Revenues decreased 27% on a year-over-year basis due to lower
car volumes and lower prices for cores and scrap.
Fourth quarter operating income increased 185% over the third quarter of
2009 due to higher scrap and core prices and higher car volumes.
Operating income declined 46% from the record achieved during the fourth
quarter of 2008 due to lower volumes and lower prices for recycled
metals.
Steel Manufacturing Business
The Steel Manufacturing Business also recorded its third consecutive
sequential improvement in its financial results as sales volumes
increased due to inventory restocking by customers.
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($ in millions, except selling
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Fourth
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Fourth
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Third
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prices; volume in thousands
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Quarter
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Quarter
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Quarter
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Fiscal
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Fiscal
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of tons)
|
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2009
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2008
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2009
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2009
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2008
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Revenues
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$
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66
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$
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182
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$
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47
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$
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263
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$
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603
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Avg. Net Sales Prices ($/T)
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$
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509
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$
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958
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$
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524
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$
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617
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$
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728
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Sales Volume
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115
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182
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85
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381
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776
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Operating Income (Loss)
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$
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1
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$
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22
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($ 5)
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($ 42)
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$
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72
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Revenues for the Steel Manufacturing business rose 41% compared to the
third quarter of fiscal 2009, primarily due to a 35% increase in sales
volumes. At the beginning of the quarter, customer inventory levels were
low, and the higher sales volumes were attributable to inventory
restocking. Despite these higher sales volumes, overall demand for
finished steel products in the west coast markets remained weak.
Compared to the fourth quarter of fiscal 2008, revenues declined 64% on
a 37% decline in sales volumes and a 47%, or $449/ ton, decline in net
average sales prices.
Operating income for the quarter was positive and improved $6 million
compared to the third quarter operating loss due to higher sales volumes
which enabled higher utilization of the melt shop and rolling mills. The
higher utilization and lower unit costs were partially offset by raw
material costs which increased despite the lower sales prices. Year over
year operating income declined due to the significantly lower sales
volumes, sales prices and metal spreads.
Share Repurchases
During the quarter, the Company repurchased 600,000 shares of its Class
‘A’ common stock. Since November 2006, the Company has repurchased 3.8
million shares, or approximately 13% of the total shares outstanding.
Under the authority granted by its Board of Directors, the Company may
repurchase an additional 3.9 million shares.
Outlook
The Company said the factors, which are forward-looking statements and
subject to uncertainty as discussed below, that may affect its results
in the first quarter of fiscal 2010 include:
Metals Recycling Business:
Pricing. Average ferrous and nonferrous net sales prices for the
first quarter as a whole are expected to increase slightly from the
fourth quarter of fiscal 2009, although market prices for the forward
sales of ferrous scrap have declined in recent weeks in both the
domestic and export markets.
Sales volumes. Due to the near record volume of shipments
in the recently completed fourth quarter and a first quarter softening
in demand, first quarter ferrous sales volumes are expected to decline
approximately one-third on a quarter over quarter basis. Nonferrous
sales volumes are also expected to decline approximately 15-20% compared
to the fourth quarter. As always, quarterly sales volumes are highly
dependent upon the timing of shipments.
Margins. First quarter margins are expected to approximate the
margins in the recently completed fourth quarter as the increase in
average sales prices is expected to be offset by an increase in average
inventory costs.
Auto Parts Business:
Effective October 2, 2009, the Company completed a transaction in which
it sold 17 locations operated by Greenleaf, its full-service used auto
parts business, and acquired six self-service used auto parts stores.
The purchase by the Company of four of the self-service stores was
effective in October, and the purchase of two of the stores is expected
to occur in January 2010. During fiscal 2009, Greenleaf generated
revenues of $116 million while recording an operating loss of $6
million, excluding corporate allocations. First quarter operating
results in the Auto Parts Business are expected to be impacted by this
transaction, as described below.
Revenues. The overall revenues of the Auto Parts Business are
expected to decrease compared to the fourth quarter due to the
divestiture of the 17 Greenleaf full-service locations. The loss of the
Greenleaf revenues is expected to be partially offset by the
contribution of the four self-service stores acquired in October as well
as the impact of higher car volumes from the Cash for Clunkers
legislation. The overall quarter-over-quarter decline in revenues is
expected to be 30-35%.
Margins. The self-service distribution channel has historically
had higher margins than the full-service distribution channel and the
disposition of the Greenleaf operation is expected to result in overall
margin improvement for the Auto Parts Group compared to the fourth
quarter. Self-service margins in the fourth quarter of fiscal 2009 were
18%. First quarter margins from continuing operations are expected to
decline slightly from that level, primarily due to integration expenses.
Disposition of Greenleaf. As a result of the sale of Greenleaf,
in the first quarter of fiscal 2010 the Company expects to record a
non-cash loss from the disposition, which will be separately reported
within discontinued operations. While the calculation of the loss is
still subject to the completion of purchase accounting, it is currently
estimated to be not less than $(15) million, primarily reflecting the
write-off of goodwill.
Steel Manufacturing Business:
Pricing. Continued weak demand for finished steel products
in the west coast markets is expected to result in sales prices which
approximate the levels seen during the fourth quarter of fiscal 2009.
Sales Volumes. Sales volumes are expected to decline
approximately 20-30% from the volumes in the fourth quarter of 2009. The
Company continues to see little indication of any impact from government
stimulus spending on demand for finished steel products.
Margins. Due to the impact of low production volumes as a result
of weak customer demand and higher cost scrap purchased before the
recent market decline, average inventory costs are expected to rise. As
a result, first quarter margins are expected to be negative, and lower
than the margins in the third quarter of fiscal 2009 when sales volumes
were are at comparable levels.
Fourth Quarter 2009 Conference Call
A conference call and slide presentation to discuss results will be held
today, October 27, 2009, at 11:30 a.m. EDT, hosted by Tamara Lundgren,
President and Chief Executive Officer, and Richard Peach, Chief
Financial Officer. The call and the slides will be webcast and are
accessible on Schnitzer Steel’s web site at www.schnitzersteel.com.
Schnitzer Steel Industries, Inc. is one of the largest manufacturers and
exporters of recycled ferrous metal products in the United States with
42 operating facilities located in 13 states and Puerto Rico, including
seven export facilities located on both the East and West Coasts and in
Hawaii and Puerto Rico. The Company’s vertically integrated operating
platform also includes its auto parts and steel manufacturing
businesses. The Company’s auto parts business sells used auto parts
through its 43 self-service facilities located in 14 states and in
western Canada. With an annual production capacity of nearly 800,000
tons, the Company’s steel manufacturing business produces finished steel
products, including rebar, wire rod and other specialty products. The
Company commenced its 104th year of operations in fiscal 2010.
This news release, particularly the Outlook section, contains
forward-looking statements, within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended, (the “Exchange Act”) which
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements include, without limitation, statements regarding the
Company’s outlook for the business and statements as to expected
pricing, sales volume, operating margins and operating income. Such
statements can generally be identified because they contain “expect,”
“believe,” “anticipate,” “estimate” and other words that convey a
similar meaning. One can also identify these statements as statements
that do not relate strictly to historical or current facts. Examples of
factors affecting the Company that could cause actual results to differ
materially from current expectations are the following: volatile supply
and demand conditions affecting prices and volumes in the markets for
both the Company’s products and the raw materials it purchases; world
economic conditions; world political conditions; unsettled credit
markets; the Company’s ability to match output with demand; changes in
federal and state income tax laws; government regulations and
environmental matters; impact of pending or new laws and regulations
regarding imports and exports into the United States and other
countries; foreign currency fluctuations; competition; seasonality,
including weather; energy supplies; freight rates and availability of
transportation; loss of key personnel; the inability to obtain
sufficient quantities of scrap metal to support current orders; purchase
price estimates made during acquisitions; business integration issues
relating to acquisitions of businesses; new accounting pronouncements;
availability of capital resources; creditworthiness of and availability
of credit to suppliers and customers; adverse impact of climate changes;
and business disruptions resulting from installation or replacement of
major capital assets, as discussed in more detail in “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in the Company’s most recent Annual Report on Form 10-K or
Quarterly Report on Form 10-Q. One should understand that it is not
possible to predict or identify all factors that could cause actual
results to differ from the Company’s forward-looking statements.
Consequently, the reader should not consider any such list to be a
complete statement of all potential risks or uncertainties. The Company
does not assume any obligation to update any forward-looking statement.
For more information about Schnitzer Steel Industries, Inc., go to www.schnitzersteel.com.
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SCHNITZER STEEL INDUSTRIES, INC.
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FINANCIAL HIGHLIGHTS
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(in thousands, except per share amounts)
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(Unaudited)
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For the Three Months Ended
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For the Twelve Months Ended
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August 31,
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August 31,
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August 31,
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August 31,
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2009
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2008
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2009
|
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2008
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REVENUES:
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Metals Recycling Business:
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Ferrous sales
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371,247
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1,037,530
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1,249,308
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2,590,796
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Nonferrous sales
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|
79,452
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|
134,842
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|
251,508
|
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460,639
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Other sales
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|
1,417
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|
|
2,029
|
|
|
|
6,839
|
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|
|
11,415
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Total sales
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|
452,116
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|
1,174,401
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|
|
1,507,655
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3,062,850
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Auto Parts Business
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74,770
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102,545
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266,203
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352,682
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Steel Manufacturing Business
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65,891
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182,333
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263,269
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603,189
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Intercompany sales eliminations
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(36,548
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)
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(145,240
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)
|
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(136,901
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)
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|
(377,171
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)
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|
Total
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$
|
556,229
|
|
|
$
|
1,314,039
|
|
|
$
|
1,900,226
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|
$
|
3,641,550
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INCOME (LOSS) FROM OPERATIONS:
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Metals Recycling Business:
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20,505
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181,780
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12,552
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356,873
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|
Auto Parts Business
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8,489
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16,260
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|
(2,922
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)
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46,734
|
|
|
Steel Manufacturing Business
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|
643
|
|
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22,024
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|
(42,000
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)
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|
72,300
|
|
|
Corporate expense
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|
|
(12,254
|
)
|
|
|
(17,119
|
)
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|
|
(38,352
|
)
|
|
|
(63,990
|
)
|
|
Intercompany eliminations
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|
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(1,159
|
)
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|
(3,118
|
)
|
|
|
13,112
|
|
|
|
(9,634
|
)
|
|
|
|
Total
|
|
$
|
16,224
|
|
|
$
|
199,827
|
|
|
$
|
(57,610
|
)
|
|
$
|
402,283
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
|
|
$
|
10,265
|
|
|
$
|
126,382
|
|
|
$
|
(32,229
|
)
|
|
$
|
248,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS (LOSS) PER SHARE
|
|
$
|
0.37
|
|
|
$
|
4.49
|
|
|
$
|
(1.14
|
)
|
|
$
|
8.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS (LOSS) PER SHARE
|
|
$
|
0.36
|
|
|
$
|
4.38
|
|
|
$
|
(1.14
|
)
|
|
$
|
8.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARE INFORMATION (THOUSANDS):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic shares outstanding
|
|
|
28,098
|
|
|
|
28,165
|
|
|
|
28,159
|
|
|
|
28,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares outstanding
|
|
|
28,415
|
|
|
|
28,834
|
|
|
|
28,159
|
|
|
|
28,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
CONDENSED CONSOLIDATED STATEMENT OF INCOME
|
|
(in thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Twelve Months Ended
|
|
|
|
August 31,
|
|
August 31,
|
|
|
August 31,
|
|
August 31,
|
|
|
|
2009
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
556,229
|
|
|
$
|
1,314,039
|
|
|
$
|
1,900,226
|
|
|
$
|
3,641,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
489,588
|
|
|
|
1,053,393
|
|
|
|
1,781,114
|
|
|
|
3,013,853
|
|
|
Selling, general and administrative
|
|
|
50,076
|
|
|
|
67,091
|
|
|
|
184,657
|
|
|
|
237,723
|
|
|
Environmental matters
|
|
|
(666
|
)
|
|
|
(796
|
)
|
|
|
(6,746
|
)
|
|
|
(603
|
)
|
|
(Income) loss from joint ventures
|
|
|
1,007
|
|
|
|
(5,476
|
)
|
|
|
(1,189
|
)
|
|
|
(11,706
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
16,224
|
|
|
|
199,827
|
|
|
|
(57,610
|
)
|
|
|
402,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(519
|
)
|
|
|
(1,946
|
)
|
|
|
(3,342
|
)
|
|
|
(8,649
|
)
|
|
Other income
|
|
|
619
|
|
|
|
1,055
|
|
|
|
7,405
|
|
|
|
2,644
|
|
|
Other income (expense)
|
|
|
100
|
|
|
|
(891
|
)
|
|
|
4,063
|
|
|
|
(6,005
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes and minority interests
|
|
|
16,324
|
|
|
|
198,936
|
|
|
|
(53,547
|
)
|
|
|
396,278
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (expense)
|
|
|
(5,907
|
)
|
|
|
(71,477
|
)
|
|
|
21,817
|
|
|
|
(144,203
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before minority interests and pre-acquisition
interests
|
|
|
10,417
|
|
|
|
127,459
|
|
|
|
(31,730
|
)
|
|
|
252,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interests, net of tax
|
|
|
(152
|
)
|
|
|
(1,077
|
)
|
|
|
(499
|
)
|
|
|
(3,392
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
10,265
|
|
|
$
|
126,382
|
|
|
$
|
(32,229
|
)
|
|
$
|
248,683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share
|
|
$
|
0.37
|
|
|
$
|
4.49
|
|
|
$
|
(1.14
|
)
|
|
$
|
8.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share
|
|
$
|
0.36
|
|
|
$
|
4.38
|
|
|
$
|
(1.14
|
)
|
|
$
|
8.61
|
|
|
Schnitzer Steel Industries, Inc.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Operating Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
Q1 FY09
|
|
Q2 FY09
|
|
Q3 FY09
|
|
Q4 FY09
|
|
FY09
|
|
Q1 FY08
|
|
Q2 FY08
|
|
Q3 FY08
|
|
Q4 FY08
|
|
FY08
|
|
Metals Recycling Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous Processing Selling Prices ($/LT)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic(2)
|
|
$
|
371
|
|
$
|
209
|
|
$
|
186
|
|
$
|
250
|
|
$
|
275
|
|
$
|
279
|
|
$
|
321
|
|
$
|
464
|
|
$
|
583
|
|
$
|
416
|
|
|
|
Exports
|
|
|
353
|
|
|
259
|
|
|
228
|
|
|
251
|
|
|
262
|
|
|
280
|
|
|
329
|
|
|
463
|
|
|
637
|
|
|
455
|
|
|
|
Average
|
|
|
359
|
|
|
253
|
|
|
223
|
|
|
251
|
|
|
264
|
|
|
280
|
|
|
327
|
|
|
463
|
|
|
623
|
|
|
442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous Processing Sales Volume (LT)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cascade
|
|
|
145,493
|
|
|
29,761
|
|
|
55,162
|
|
|
104,428
|
|
|
334,844
|
|
|
179,686
|
|
|
170,221
|
|
|
186,696
|
|
|
200,523
|
|
|
737,126
|
|
|
|
Domestic
|
|
|
129,620
|
|
|
99,275
|
|
|
86,555
|
|
|
101,972
|
|
|
417,422
|
|
|
178,833
|
|
|
210,824
|
|
|
226,961
|
|
|
188,801
|
|
|
805,419
|
|
|
|
Export
|
|
|
503,635
|
|
|
954,003
|
|
|
895,167
|
|
|
1,083,472
|
|
|
3,436,277
|
|
|
642,142
|
|
|
746,736
|
|
|
722,973
|
|
|
1,099,203
|
|
|
3,211,054
|
|
|
|
Total Processed
|
|
|
778,748
|
|
|
1,083,039
|
|
|
1,036,884
|
|
|
1,289,872
|
|
|
4,188,543
|
|
|
1,000,661
|
|
|
1,127,781
|
|
|
1,136,630
|
|
|
1,488,527
|
|
|
4,753,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous Trading Sales Volume (LT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trading
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
134,957
|
|
|
148,899
|
|
|
151,324
|
|
|
8,407
|
|
|
443,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Ferrous Sales Volume (LT)(2)
|
|
|
778,748
|
|
|
1,083,039
|
|
|
1,036,884
|
|
|
1,289,872
|
|
|
4,188,543
|
|
|
1,135,618
|
|
|
1,276,680
|
|
|
1,287,954
|
|
|
1,496,934
|
|
|
5,197,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous Average Price ($/pound)(1)
|
|
$
|
0.78
|
|
$
|
0.45
|
|
$
|
0.51
|
|
$
|
0.630
|
|
$
|
0.61
|
|
$
|
1.00
|
|
$
|
0.98
|
|
$
|
1.07
|
|
$
|
1.05
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous Sales Volume (pounds, in thousands)
|
|
|
107,359
|
|
|
76,822
|
|
|
90,226
|
|
|
122,649
|
|
|
397,056
|
|
|
88,808
|
|
|
96,278
|
|
|
128,858
|
|
|
125,525
|
|
|
439,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Manufacturing Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Prices ($/NT)(1)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
$
|
864
|
|
$
|
570
|
|
$
|
524
|
|
$
|
509
|
|
$
|
617
|
|
$
|
601
|
|
$
|
616
|
|
$
|
744
|
|
$
|
958
|
|
$
|
728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volume (NT)(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rebar
|
|
|
46,917
|
|
|
56,588
|
|
|
52,749
|
|
|
70,542
|
|
|
226,796
|
|
|
108,856
|
|
|
127,732
|
|
|
128,597
|
|
|
104,926
|
|
|
470,111
|
|
|
|
Coiled Products
|
|
|
45,051
|
|
|
19,332
|
|
|
25,798
|
|
|
36,949
|
|
|
127,130
|
|
|
49,343
|
|
|
57,096
|
|
|
74,270
|
|
|
65,397
|
|
|
246,106
|
|
|
|
Merchant Bar and Other
|
|
|
6,235
|
|
|
6,783
|
|
|
6,820
|
|
|
7,343
|
|
|
27,181
|
|
|
16,031
|
|
|
17,332
|
|
|
15,033
|
|
|
11,576
|
|
|
59,972
|
|
|
|
Total
|
|
|
98,203
|
|
|
82,703
|
|
|
85,367
|
|
|
114,834
|
|
|
381,107
|
|
|
174,230
|
|
|
202,160
|
|
|
217,900
|
|
|
181,899
|
|
|
776,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto Parts Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of self-service locations at end of quarter
|
|
|
38
|
|
|
40
|
|
|
39
|
|
|
39
|
|
|
39
|
|
|
35
|
|
|
35
|
|
|
35
|
|
|
38
|
|
|
38
|
|
|
Number of full-service sites at end of quarter
|
|
|
18
|
|
|
18
|
|
|
18
|
|
|
18
|
|
|
18
|
|
|
17
|
|
|
17
|
|
|
17
|
|
|
18
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Price information is shown after a reduction for the cost of
freight incurred to deliver the product to the customer.
|
|
(2) Includes sales to the Steel Manufacturing Business for all
quarters.
|
|
(3) Excludes billet sales.
|
|
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited, in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 31, 2009
|
|
|
August 31, 2008
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
41,026
|
|
$
|
15,039
|
|
|
Accounts receivable, net
|
|
|
117,666
|
|
|
314,993
|
|
|
Inventories, net
|
|
|
184,455
|
|
|
429,061
|
|
|
Other current assets
|
|
|
67,867
|
|
|
20,433
|
|
|
Total current assets
|
|
|
411,014
|
|
|
779,526
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
447,228
|
|
|
431,898
|
|
|
|
|
|
|
|
|
|
|
Goodwill and other assets
|
|
|
409,991
|
|
|
343,429
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,268,233
|
|
$
|
1,554,853
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
$
|
1,317
|
|
$
|
25,490
|
|
|
Other current liabilities
|
|
|
138,812
|
|
|
319,432
|
|
|
Total current liabilities
|
|
|
140,129
|
|
|
344,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
110,414
|
|
|
158,933
|
|
|
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
|
94,940
|
|
|
68,447
|
|
|
|
|
|
|
|
|
|
|
Minority interests
|
|
|
3,383
|
|
|
4,399
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
|
919,367
|
|
|
978,152
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity
|
|
$
|
1,268,233
|
|
$
|
1,554,853
|
Source: Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc.
Rob Stone, 503-224-9900
ir@schn.com