Schnitzer Reports Fourth Quarter and Fiscal 2018 Financial Results
Best Fourth Quarter and Fiscal Year Operating Income Since Fiscal 2011
Fourth Quarter Total SSI Volumes Up 22% for Ferrous and Up 15% for
Nonferrous Year-Over-Year
Strong Fourth Quarter Operating Cash Flow of $106 million
PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 24, 2018--
Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) today reported financial
results for its fourth quarter and fiscal year ended August 31, 2018.
The Company reported earnings per share from continuing operations for
the quarter of $2.08 and adjusted earnings per share of $2.06, both of
which include a discrete tax benefit of $30 million, or $1.06 per share,
associated with the release of valuation allowances on certain deferred
tax assets. These results are significantly higher than fourth quarter
fiscal 2017 reported earnings per share from continuing operations of
$0.65 and adjusted earnings per share of $0.63. The Company’s fiscal
2018 full year reported earnings per share of $5.46 and adjusted
earnings per share of $5.39, both of which include discrete tax benefits
of $1.58 per share, also represent significant increases compared to
fiscal 2017 reported earnings per share of $1.60 and adjusted earnings
per share of $1.53. For a reconciliation of the adjusted results to U.S.
GAAP, see the Non-GAAP Financial Measures provided after the financial
statements in this document.
In the fourth quarter of fiscal 2018, Auto and Metals Recycling (AMR)
generated operating income of $34 million, or $33 per ferrous ton, which
is a 41% increase in operating income from the prior year fourth
quarter. AMR’s improved operating income year-over-year was driven by
expanded metal spreads, higher ferrous and nonferrous sales volumes of
19% and 11%, respectively, higher average ferrous and nonferrous selling
prices of 23% and 8%, respectively, and a continued focus on
productivity and commercial initiatives, including measures to increase
supply flows. Compared to the prior year fourth quarter, AMR experienced
an adverse impact from average inventory accounting and higher selling,
general and administrative (SG&A) expense.
Cascade Steel and Scrap (CSS) generated fourth quarter operating income
of $14 million, a 70% increase compared to the prior year fourth quarter
operating income of $8 million. The strong year-over-year improvement in
operating income was driven primarily by an increase in finished steel
average net selling prices of 31% which significantly outpaced the
increase in the cost of steel-making raw materials and higher export
sales volumes, partially offset by a 14% reduction in finished steel
sales volumes primarily due to lower production as a result of planned
maintenance, including rolling mill upgrades aimed at improving
productivity.
“We delivered our best fourth quarter performance since fiscal 2011,
capping a year which reflected our strongest full year financial and
operating performance in seven years. Our consolidated operating income
of $38 million reflects an increase of more than 70% versus last year’s
fourth quarter. For the full year, AMR achieved operating income per
ferrous ton of $46, underpinned by volume increases and the resulting
operating leverage generated from ongoing productivity initiatives. CSS
also delivered excellent results, driven by higher prices and demand,
metal spread expansion, low levels of imports, and benefits from
productivity and efficiency investments,” said Tamara Lundgren,
President and CEO. “The combination of our strong profitability and
effective working capital management enabled us to generate operating
cash flow of $160 million in fiscal 2018, which allowed us to increase
our investments in growth capex and return capital to our shareholders
through both our dividend and share repurchases, while reducing our debt
to its lowest level in the past eight years. Looking forward, our strong
balance sheet provides us with the ability to continue our investments
in advanced processing technologies, environmental stewardship, and
transactional market opportunities, while continuing to return capital
to our shareholders,” added Lundgren.
AMR’s fiscal 2018 operating income of $169 million and operating income
per ferrous ton of $46 represent a significant improvement compared to
fiscal 2017 operating income of $91 million and operating income per
ferrous ton of $29. In fiscal 2018, AMR’s ferrous and nonferrous sales
volumes increased 18% and 6%, respectively. In fiscal 2018, total
ferrous volumes, including external sales by AMR and CSS, and transfers
to our steel mill, increased 19% compared to fiscal 2017.
In fiscal 2018, CSS’s operating income of $38 million represents a
significant increase compared to operating income of $5 million in
fiscal 2017 and reflects the strongest operating performance since
fiscal 2008. In addition to an increase in finished steel average net
selling prices of 25%, CSS’s fiscal 2018 operating performance also
benefited from a higher utilization rate compared to the prior fiscal
year and ongoing productivity improvements from the integration of our
steel manufacturing and Oregon metal recycling operations, which took
place in the fourth quarter of fiscal 2017.
|
Summary Results
|
|
($ in millions, except per share amounts)
|
|
|
|
Quarter
|
|
Year
|
|
|
|
4Q18
|
|
4Q17
|
|
3Q18
|
|
2018
|
|
2017
|
|
Revenues
|
|
$
|
670
|
|
|
$
|
494
|
|
|
$
|
652
|
|
|
$
|
2,365
|
|
|
$
|
1,688
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
38
|
|
|
$
|
22
|
|
|
$
|
51
|
|
|
$
|
149
|
|
|
$
|
56
|
|
|
Other asset impairment charges (recoveries), net
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
Restructuring charges and other exit-related activities
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
Resale or modification of previously contracted shipments, net of
recoveries
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
Adjusted operating income(1)
|
|
$
|
38
|
|
|
$
|
22
|
|
|
$
|
50
|
|
|
$
|
147
|
|
|
$
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to SSI
|
|
$
|
60
|
|
|
$
|
18
|
|
|
$
|
37
|
|
|
$
|
156
|
|
|
$
|
45
|
|
|
Net income from continuing operations attributable to SSI
|
|
$
|
59
|
|
|
$
|
18
|
|
|
$
|
37
|
|
|
$
|
156
|
|
|
$
|
45
|
|
|
Adjusted net income from continuing operations attributable to SSI(1)
|
|
$
|
59
|
|
|
$
|
18
|
|
|
$
|
36
|
|
|
$
|
154
|
|
|
$
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to SSI
|
|
$
|
2.09
|
|
|
$
|
0.64
|
|
|
$
|
1.31
|
|
|
$
|
5.47
|
|
|
$
|
1.58
|
|
|
Diluted earnings per share from continuing operations attributable
to SSI
|
|
$
|
2.08
|
|
|
$
|
0.65
|
|
|
$
|
1.31
|
|
|
$
|
5.46
|
|
|
$
|
1.60
|
|
|
Adjusted diluted EPS from continuing operations attributable to SSI(1)
|
|
$
|
2.06
|
|
|
$
|
0.63
|
|
|
$
|
1.26
|
|
|
$
|
5.39
|
|
|
$
|
1.53
|
|
|
|
|
(1) See Non-GAAP Financial Measures for reconciliation to
U.S. GAAP.
|
|
|
Auto and Metals Recycling
AMR segment results and operating statistics for all periods have been
recast to reflect the integration of the Oregon metals recycling
operations into CSS in the fourth quarter of 2017.
|
Summary of Auto and Metals Recycling Results
|
|
($ in millions, except selling prices)
|
|
|
|
Quarter
|
|
Year
|
|
|
|
4Q18
|
|
4Q17
|
|
3Q18
|
|
2018
|
|
2017
|
|
Total revenues
|
|
$
|
532
|
|
|
$
|
393
|
|
|
$
|
530
|
|
|
$
|
1,909
|
|
|
$
|
1,364
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous revenues
|
|
$
|
362
|
|
|
$
|
249
|
|
|
$
|
364
|
|
|
$
|
1,288
|
|
|
$
|
843
|
|
Ferrous volumes (000s LT)
|
|
1,032
|
|
|
864
|
|
|
983
|
|
|
3,708
|
|
|
3,145
|
|
Avg. net ferrous sales prices ($/LT)(1)
|
|
$
|
321
|
|
|
$
|
262
|
|
|
$
|
337
|
|
|
$
|
317
|
|
|
$
|
242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous revenues
|
|
$
|
134
|
|
|
$
|
112
|
|
|
$
|
127
|
|
|
$
|
482
|
|
|
$
|
395
|
|
Nonferrous volumes (Ms LB)(2)
|
|
167
|
|
|
150
|
|
|
146
|
|
|
572
|
|
|
541
|
|
Avg. net nonferrous sales prices ($/LB)(1)(2)
|
|
$
|
0.69
|
|
|
$
|
0.64
|
|
|
$
|
0.74
|
|
|
$
|
0.72
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cars purchased for retail (000s)
|
|
105
|
|
113
|
|
109
|
|
424
|
|
411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income(3)
|
|
$
|
34
|
|
|
$
|
24
|
|
|
$
|
55
|
|
|
$
|
169
|
|
|
$
|
91
|
|
Operating income per Fe ton
|
|
$
|
33
|
|
|
$
|
28
|
|
|
$
|
56
|
|
|
$
|
46
|
|
|
$
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income(4)
|
|
$
|
34
|
|
|
$
|
24
|
|
|
$
|
54
|
|
|
$
|
168
|
|
|
$
|
90
|
|
Adjusted operating income per Fe ton
|
|
$
|
33
|
|
|
$
|
28
|
|
|
$
|
54
|
|
|
$
|
45
|
|
|
$
|
29
|
|
|
|
(1)
|
|
Sales prices are shown net of freight.
|
|
(2)
|
|
Excludes PGM metals in catalytic converters.
|
|
(3)
|
|
Operating income does not include the impact of restructuring
charges and other exit-related activities.
|
|
(4)
|
|
See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
|
|
|
|
|
Volumes: Ferrous sales volumes in the fourth quarter
increased 19% compared to the prior year quarter and 5% sequentially,
primarily due to stronger export and domestic demand for recycled metals
and commercial initiatives to increase our supply flows. Nonferrous
sales volumes increased 11% compared to the prior year quarter and 14%
sequentially.
Export customers accounted for 69% of total ferrous sales volumes in the
fourth quarter, with Turkey, South Korea and Bangladesh as the top
export destinations. Our products, including ferrous, nonferrous and
recycled auto parts, were shipped to 20 countries in the fourth quarter
and a total of 25 countries in fiscal 2018.
Pricing: Average ferrous net selling prices increased $59
per ton, or 23%, in the fourth quarter compared to the same period of
the prior year, and decreased sequentially by $16 per ton, or 5%.
Nonferrous average net selling prices in the fourth quarter increased 8%
compared to the prior year quarter and decreased 7% sequentially.
Margins: Operating income was $34 million in the fourth
quarter, an increase of $10 million or 41% compared to the prior year
fourth quarter and a decrease of $21 million or 38% sequentially.
Operating income per ton of $33 in the fourth quarter increased 18%
compared to the same period of the prior year reflecting metal spread
expansion, increased volumes and average net selling prices for ferrous
and nonferrous products, and benefits from commercial initiatives. The
improved year-over-year performance was partially offset by an adverse
impact from average inventory accounting and higher selling, general and
administrative expense.
Sequentially, operating income per ton was lower primarily due to a
decline in ferrous and nonferrous selling prices during the quarter,
coupled with the adverse effect of average inventory accounting and
seasonally lower retail revenues, which were partially offset by
benefits of higher ferrous and nonferrous sales volumes, reduced
purchase costs for raw materials and our continued focus on productivity
and commercial initiatives, including nonferrous processing
improvements. The fourth quarter includes an adverse impact of $2
million from average inventory accounting compared to a benefit of $3
million in the same period of the prior year and a benefit of $2 million
in the third quarter of fiscal 2018.
Cascade Steel and Scrap
CSS segment results and operating statistics reflect the integrated
steel manufacturing operations and Oregon metals recycling operations
for all periods presented.
|
Summary of Cascade Steel and Scrap Results
|
|
($ in millions, except selling prices)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
|
|
Year
|
|
|
|
4Q18
|
|
4Q17
|
|
3Q18
|
|
2018
|
|
2017
|
|
Steel revenues
|
|
$
|
102
|
|
|
$
|
88
|
|
|
$
|
104
|
|
|
$
|
368
|
|
|
$
|
281
|
|
|
Recycling revenues
|
|
42
|
|
|
17
|
|
|
26
|
|
|
113
|
|
|
59
|
|
|
Total segment revenues
|
|
$
|
144
|
|
|
$
|
105
|
|
|
$
|
130
|
|
|
$
|
481
|
|
|
$
|
340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
14
|
|
|
$
|
8
|
|
|
$
|
11
|
|
|
$
|
38
|
|
|
$
|
5
|
|
|
Adjusted operating income(1)
|
|
$
|
14
|
|
|
$
|
7
|
|
|
$
|
11
|
|
|
$
|
38
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finished steel average net sales price ($/ST)(2)
|
|
$
|
741
|
|
|
$
|
565
|
|
|
$
|
703
|
|
|
$
|
666
|
|
|
$
|
534
|
|
|
Finished steel sales volumes (000s ST)
|
|
127
|
|
|
147
|
|
|
140
|
|
|
519
|
|
|
496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rolling mill utilization
|
|
83
|
%
|
|
95
|
%
|
|
91
|
%
|
|
88
|
%
|
|
83
|
%
|
|
|
|
(1)
|
|
See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
|
|
(2)
|
|
Price information is shown after netting the cost of freight
incurred to deliver the product to the customer.
|
|
|
|
|
Volumes: Finished steel sales volumes in the fourth
quarter of 127 thousand tons decreased 14% from the prior year quarter
and 9% sequentially, primarily due to lower production as a result of
planned maintenance, including rolling mill upgrades aimed at improving
productivity.
Pricing: Average net selling prices for finished steel
increased 31% from the prior year fourth quarter, primarily due to
reduced pressure from steel imports. Sequentially, finished steel prices
increased 5%, primarily reflecting higher raw material costs.
Margins: Operating income for the fourth quarter of fiscal
2018 was $14 million, an increase of $6 million compared to the same
period of the prior year and $3 million sequentially. The improved
performance in the fourth quarter both year-over-year and sequentially
reflected an expansion in finished steel margins resulting from higher
average selling prices, which significantly outpaced the increase in the
cost of steel-making raw materials, and additional productivity
improvements resulting from the integration of our steel manufacturing
and Oregon metal recycling operations in the fourth quarter of fiscal
2017, partially offset by lower sales volumes.
Corporate Items
In the fourth quarter of fiscal 2018, consolidated financial performance
included Corporate expense of $11 million, an increase of $1 million
compared to the prior year quarter and a decrease of $4 million compared
to the third quarter of fiscal 2018. The sequential reduction in
Corporate expense was driven primarily by lower professional service
expenses.
The Company’s effective tax rate for the fourth quarter was a benefit of
approximately 65.1%, driven primarily by a discrete tax benefit of $30
million, or $1.06 per share, associated with the release of valuation
allowances on certain deferred tax assets. The effective tax rate for
fiscal 2018 was a benefit of 12.4%.
The Company generated operating cash flow of $106 million in the fourth
quarter, driven by profitability and strong working capital management.
Total debt was $107 million as of August 31, 2018, or 26% lower than at
the end of fiscal 2017, and debt, net of cash, was $103 million (for a
reconciliation of debt, net of cash, see the table provided in the
Non-GAAP Financial Measures section).
Pursuant to our ongoing authorized share repurchase program, the Company
repurchased a total of 250,000 shares of its Class A common stock in
open market transactions during the fourth quarter, bringing share
repurchases for fiscal 2018 to 516,013 shares, or 1.9%, of total
outstanding shares. The Company also returned capital to shareholders
through its 98th consecutive quarterly dividend.
Analysts’ Conference Call: Fourth Quarter and Fiscal 2018
A conference call and slide presentation to discuss results will be held
today, October 24, 2018, at 11:30 a.m. EDT hosted by Tamara Lundgren,
President and Chief Executive Officer, and Richard Peach, Senior Vice
President, Chief Financial Officer and Chief of Corporate Operations.
The call and the slides will be webcast and accessible on the Company’s
website under Company > Investors > Event Calendar at www.schnitzersteel.com/events.
Summary financial data is provided in the following pages. The slides
and appendix will be available on the website prior to the call.
About Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc. is one of the largest manufacturers and
exporters of recycled metal products in North America with operating
facilities located in 23 states, Puerto Rico and Western Canada.
Schnitzer has seven deep water export facilities located on both the
East and West Coasts and in Hawaii and Puerto Rico. The Company’s
integrated operating platform also includes auto parts stores with
approximately 5 million annual retail visits. The Company’s steel
manufacturing operations produce finished steel products, including
rebar, wire rod and other specialty products. The Company began
operations in 1906 in Portland, Oregon.
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
FINANCIAL HIGHLIGHTS
|
|
(in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Year Ended
|
|
|
|
August 31,
2018
|
|
August 31,
2017
|
|
May 31,
2018
|
|
August 31,
2018
|
|
August 31,
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto and Metals Recycling:
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous revenues
|
|
$
|
362,051
|
|
|
$
|
248,856
|
|
|
$
|
363,566
|
|
|
$
|
1,288,287
|
|
|
$
|
843,222
|
|
|
Nonferrous revenues
|
|
133,758
|
|
|
111,881
|
|
|
127,288
|
|
|
481,777
|
|
|
394,977
|
|
|
Retail and other revenues
|
|
35,707
|
|
|
32,570
|
|
|
38,757
|
|
|
138,902
|
|
|
125,419
|
|
|
Total Auto and Metals Recycling
|
|
531,516
|
|
|
393,307
|
|
|
529,611
|
|
|
1,908,966
|
|
|
1,363,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cascade Steel and Scrap:
|
|
|
|
|
|
|
|
|
|
|
|
Steel revenues
|
|
101,846
|
|
|
87,915
|
|
|
103,726
|
|
|
367,560
|
|
|
280,767
|
|
|
Recycling revenues
|
|
42,021
|
|
|
17,334
|
|
|
26,350
|
|
|
113,081
|
|
|
58,853
|
|
|
Total Cascade Steel and Scrap
|
|
143,867
|
|
|
105,249
|
|
|
130,076
|
|
|
480,641
|
|
|
339,620
|
|
|
Intercompany sales eliminations
|
|
(5,806
|
)
|
|
(4,298
|
)
|
|
(7,271
|
)
|
|
(24,892
|
)
|
|
(15,647
|
)
|
|
Total revenues
|
|
$
|
669,577
|
|
|
$
|
494,258
|
|
|
$
|
652,416
|
|
|
$
|
2,364,715
|
|
|
$
|
1,687,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMR operating income
|
|
$
|
33,836
|
|
|
$
|
23,992
|
|
|
$
|
54,980
|
|
|
$
|
169,120
|
|
|
$
|
91,405
|
|
|
CSS operating income
|
|
13,604
|
|
|
8,019
|
|
|
10,793
|
|
|
38,286
|
|
|
5,275
|
|
|
Consolidated operating income
|
|
$
|
37,973
|
|
|
$
|
22,108
|
|
|
$
|
51,234
|
|
|
$
|
148,988
|
|
|
$
|
56,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted AMR operating income(1)
|
|
$
|
34,368
|
|
|
$
|
24,435
|
|
|
$
|
53,515
|
|
|
$
|
167,770
|
|
|
$
|
90,077
|
|
|
Adjusted CSS operating income(1)
|
|
13,604
|
|
|
7,085
|
|
|
10,793
|
|
|
38,198
|
|
|
4,742
|
|
|
Adjusted segment operating income(1)(2)
|
|
47,972
|
|
|
31,520
|
|
|
64,308
|
|
|
205,968
|
|
|
94,819
|
|
|
Corporate expense
|
|
(10,928
|
)
|
|
(10,107
|
)
|
|
(14,467
|
)
|
|
(58,789
|
)
|
|
(40,788
|
)
|
|
Intercompany eliminations
|
|
539
|
|
|
294
|
|
|
(2
|
)
|
|
(290
|
)
|
|
12
|
|
|
Adjusted operating income(1)
|
|
37,583
|
|
|
21,707
|
|
|
49,839
|
|
|
146,889
|
|
|
54,043
|
|
|
Other asset impairment (charges) recoveries, net
|
|
(532
|
)
|
|
74
|
|
|
1,465
|
|
|
1,021
|
|
|
717
|
|
|
Restructuring charges and other exit-related activities
|
|
922
|
|
|
(90
|
)
|
|
(70
|
)
|
|
661
|
|
|
109
|
|
|
Recoveries related to the resale or modification of previously
contracted shipments
|
|
—
|
|
|
417
|
|
|
—
|
|
|
417
|
|
|
1,144
|
|
|
Total operating income
|
|
$
|
37,973
|
|
|
$
|
22,108
|
|
|
$
|
51,234
|
|
|
$
|
148,988
|
|
|
$
|
56,013
|
|
|
|
|
(1)
|
|
See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
|
|
(2)
|
|
Segment operating income does not include the impact of
restructuring charges and other exit-related activities.
|
|
|
|
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
(in thousands, except per share amounts)
|
|
(Unaudited)
|
|
|
|
For the Three Months Ended
|
|
For the Year Ended
|
|
|
|
August 31,
2018
|
|
August 31,
2017
|
|
May 31,
2018
|
|
August 31,
2018
|
|
August 31,
2017
|
|
Revenues
|
|
$
|
669,577
|
|
|
$
|
494,258
|
|
|
$
|
652,416
|
|
|
$
|
2,364,715
|
|
|
$
|
1,687,591
|
|
|
Cost of goods sold
|
|
582,608
|
|
|
430,703
|
|
|
549,164
|
|
|
2,010,485
|
|
|
1,464,508
|
|
|
Selling, general and administrative
|
|
50,011
|
|
|
41,805
|
|
|
54,185
|
|
|
208,877
|
|
|
171,570
|
|
|
(Income) from joint ventures
|
|
(625
|
)
|
|
(374
|
)
|
|
(772
|
)
|
|
(1,953
|
)
|
|
(3,674
|
)
|
|
Other asset impairment charges (recoveries), net
|
|
532
|
|
|
(74
|
)
|
|
(1,465
|
)
|
|
(1,021
|
)
|
|
(717
|
)
|
|
Restructuring charges and other exit-related activities
|
|
(922
|
)
|
|
90
|
|
|
70
|
|
|
(661
|
)
|
|
(109
|
)
|
|
Operating income
|
|
37,973
|
|
|
22,108
|
|
|
51,234
|
|
|
148,988
|
|
|
56,013
|
|
|
Interest expense
|
|
(2,160
|
)
|
|
(2,112
|
)
|
|
(2,483
|
)
|
|
(8,983
|
)
|
|
(8,081
|
)
|
|
Other income (expense), net
|
|
495
|
|
|
(561
|
)
|
|
403
|
|
|
1,848
|
|
|
758
|
|
|
Income from continuing operations before income taxes
|
|
36,308
|
|
|
19,435
|
|
|
49,154
|
|
|
141,853
|
|
|
48,690
|
|
|
Income tax (expense) benefit
|
|
23,620
|
|
|
(586
|
)
|
|
(10,650
|
)
|
|
17,590
|
|
|
(1,322
|
)
|
|
Income from continuing operations
|
|
59,928
|
|
|
18,849
|
|
|
38,504
|
|
|
159,443
|
|
|
47,368
|
|
|
Income (loss) from discontinued operations, net of tax
|
|
273
|
|
|
(114
|
)
|
|
(56
|
)
|
|
346
|
|
|
(390
|
)
|
|
Net income
|
|
60,201
|
|
|
18,735
|
|
|
38,448
|
|
|
159,789
|
|
|
46,978
|
|
|
Net income attributable to noncontrolling interests
|
|
(532
|
)
|
|
(500
|
)
|
|
(1,046
|
)
|
|
(3,338
|
)
|
|
(2,467
|
)
|
|
Net income attributable to SSI
|
|
$
|
59,669
|
|
|
$
|
18,235
|
|
|
$
|
37,402
|
|
|
$
|
156,451
|
|
|
$
|
44,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from continuing operations attributable to SSI
|
|
$
|
2.17
|
|
|
$
|
0.66
|
|
|
$
|
1.35
|
|
|
$
|
5.65
|
|
|
$
|
1.63
|
|
|
Income (loss) per share from discontinued operations
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
Net income per share attributable to SSI
|
|
$
|
2.18
|
|
|
$
|
0.66
|
|
|
$
|
1.35
|
|
|
$
|
5.66
|
|
|
$
|
1.62
|
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from continuing operations attributable to SSI
|
|
$
|
2.08
|
|
|
$
|
0.65
|
|
|
$
|
1.31
|
|
|
$
|
5.46
|
|
|
$
|
1.60
|
|
|
Income (loss) per share from discontinued operations
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
Net income per share attributable to SSI(1)
|
|
$
|
2.09
|
|
|
$
|
0.64
|
|
|
$
|
1.31
|
|
|
$
|
5.47
|
|
|
$
|
1.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
27,427
|
|
|
27,650
|
|
|
27,676
|
|
|
27,645
|
|
|
27,537
|
|
|
Diluted
|
|
28,524
|
|
|
28,409
|
|
|
28,636
|
|
|
28,589
|
|
|
28,141
|
|
|
Dividends declared per common share
|
|
$
|
0.1875
|
|
|
$
|
0.1875
|
|
|
$
|
0.1875
|
|
|
$
|
0.750
|
|
|
$
|
0.750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) May not foot due to rounding.
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
SELECTED OPERATING STATISTICS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
|
|
|
|
1Q18
|
|
2Q18
|
|
3Q18
|
|
4Q18
|
|
2018
|
|
SSI Total Volumes(1)
|
|
|
|
|
|
|
|
|
|
|
|
Total ferrous volumes (LT)
|
|
912,145
|
|
|
1,062,260
|
|
|
1,118,743
|
|
|
1,205,803
|
|
|
4,298,951
|
|
|
Total nonferrous volumes (000s LB)
|
|
141,046
|
|
|
144,024
|
|
|
162,667
|
|
|
188,359
|
|
|
636,096
|
|
|
Auto and Metals Recycling
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous selling prices ($/LT)(2)
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
$
|
259
|
|
|
$
|
278
|
|
|
$
|
314
|
|
|
$
|
303
|
|
|
$
|
291
|
|
|
Export
|
|
$
|
306
|
|
|
$
|
327
|
|
|
$
|
347
|
|
|
$
|
328
|
|
|
$
|
328
|
|
|
Average
|
|
$
|
292
|
|
|
$
|
314
|
|
|
$
|
337
|
|
|
$
|
321
|
|
|
$
|
317
|
|
|
Ferrous sales volume (LT)
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
237,464
|
|
|
239,571
|
|
|
293,323
|
|
|
314,974
|
|
|
1,085,332
|
|
|
Export
|
|
559,154
|
|
|
656,738
|
|
|
690,019
|
|
|
716,834
|
|
|
2,622,745
|
|
|
Total
|
|
796,618
|
|
|
896,309
|
|
|
983,342
|
|
|
1,031,808
|
|
|
3,708,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous average price ($/LB)(2)(3)
|
|
$
|
0.73
|
|
|
$
|
0.72
|
|
|
$
|
0.74
|
|
|
$
|
0.69
|
|
|
$
|
0.72
|
|
|
Nonferrous sales volume (000s LB)(3)
|
|
129,137
|
|
|
129,549
|
|
|
146,043
|
|
|
166,976
|
|
|
571,705
|
|
|
Car purchase volume (000s)(4)
|
|
108
|
|
|
102
|
|
|
109
|
|
|
105
|
|
|
424
|
|
|
Auto stores at end of quarter
|
|
53
|
|
|
53
|
|
|
53
|
|
|
52
|
|
|
52
|
|
|
Cascade Steel and Scrap
|
|
|
|
|
|
|
|
|
|
|
|
Finished steel average sales price ($/ST)(2)
|
|
$
|
599
|
|
|
$
|
619
|
|
|
$
|
703
|
|
|
$
|
741
|
|
|
$
|
666
|
|
|
Sales volume (ST)
|
|
|
|
|
|
|
|
|
|
|
|
Rebar
|
|
84,243
|
|
|
79,718
|
|
|
91,603
|
|
|
81,182
|
|
|
336,746
|
|
|
Coiled products
|
|
40,928
|
|
|
43,056
|
|
|
46,673
|
|
|
43,878
|
|
|
174,535
|
|
|
Merchant bar and other
|
|
2,049
|
|
|
1,937
|
|
|
1,945
|
|
|
1,950
|
|
|
7,881
|
|
|
Finished steel products sold
|
|
127,220
|
|
|
124,711
|
|
|
140,221
|
|
|
127,010
|
|
|
519,162
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rolling mill utilization(5)
|
|
95
|
%
|
|
83
|
%
|
|
91
|
%
|
|
83
|
%
|
|
88
|
%
|
|
|
|
(1)
|
|
Ferrous and nonferrous volumes sold externally by AMR and CSS and
delivered to our steel mill for finished steel production.
|
|
(2)
|
|
Price information is shown after a reduction for the cost of freight
incurred to deliver the product to the customer.
|
|
(3)
|
|
Excludes PGM metals in catalytic converters.
|
|
(4)
|
|
Cars purchased by auto stores only.
|
|
(5)
|
|
Rolling mill utilization is based on effective annual production
capacity under current conditions of 580 thousand tons of finished
steel products.
|
|
|
|
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
SELECTED OPERATING STATISTICS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year
|
|
|
|
1Q17
|
|
2Q17
|
|
3Q17
|
|
4Q17
|
|
2017
|
|
SSI Total Volumes(1)
|
|
|
|
|
|
|
|
|
|
|
|
Total ferrous volumes (LT)
|
|
833,889
|
|
|
852,036
|
|
|
951,230
|
|
|
990,516
|
|
|
3,627,671
|
|
|
Total nonferrous volumes (000s LB)
|
|
136,057
|
|
|
122,554
|
|
|
161,832
|
|
|
164,342
|
|
|
584,785
|
|
|
Auto and Metals Recycling
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous selling prices ($/LT)(2)
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
$
|
169
|
|
|
$
|
237
|
|
|
$
|
263
|
|
|
$
|
257
|
|
|
$
|
236
|
|
|
Export
|
|
$
|
203
|
|
|
$
|
252
|
|
|
$
|
255
|
|
|
$
|
263
|
|
|
$
|
244
|
|
|
Average
|
|
$
|
194
|
|
|
$
|
247
|
|
|
$
|
258
|
|
|
$
|
262
|
|
|
$
|
242
|
|
|
Ferrous sales volume (LT)
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
197,255
|
|
|
220,975
|
|
|
291,227
|
|
|
238,930
|
|
|
948,387
|
|
|
Export
|
|
519,510
|
|
|
518,200
|
|
|
534,164
|
|
|
625,168
|
|
|
2,197,042
|
|
|
Total
|
|
716,765
|
|
|
739,175
|
|
|
825,391
|
|
|
864,098
|
|
|
3,145,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous average price ($/LB)(2)(3)
|
|
$
|
0.58
|
|
|
$
|
0.64
|
|
|
$
|
0.65
|
|
|
$
|
0.64
|
|
|
$
|
0.63
|
|
|
Nonferrous sales volume (000s LB)(3)
|
|
125,817
|
|
|
114,275
|
|
|
150,356
|
|
|
150,343
|
|
|
540,791
|
|
|
Car purchase volume (000s)(4)
|
|
94
|
|
|
96
|
|
|
108
|
|
|
113
|
|
|
411
|
|
|
Auto stores at end of quarter
|
|
52
|
|
|
52
|
|
|
53
|
|
|
53
|
|
|
53
|
|
|
Cascade Steel and Scrap
|
|
|
|
|
|
|
|
|
|
|
|
Finished steel average sales price ($/ST)(2)
|
|
$
|
492
|
|
|
$
|
517
|
|
|
$
|
545
|
|
|
$
|
565
|
|
|
$
|
534
|
|
|
Sales volume (ST)
|
|
|
|
|
|
|
|
|
|
|
|
Rebar
|
|
73,903
|
|
|
69,136
|
|
|
84,166
|
|
|
96,323
|
|
|
323,528
|
|
|
Coiled products
|
|
23,934
|
|
|
34,371
|
|
|
54,629
|
|
|
48,349
|
|
|
161,283
|
|
|
Merchant bar and other
|
|
3,038
|
|
|
2,482
|
|
|
2,426
|
|
|
2,759
|
|
|
10,705
|
|
|
Finished steel products sold
|
|
100,875
|
|
|
105,989
|
|
|
141,221
|
|
|
147,431
|
|
|
495,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rolling mill utilization(5)
|
|
65
|
%
|
|
89
|
%
|
|
85
|
%
|
|
95
|
%
|
|
83
|
%
|
|
|
|
(1)
|
|
Ferrous and nonferrous volumes sold externally by AMR and CSS and
delivered to our steel mill for finished steel production.
|
|
(2)
|
|
Price information is shown after a reduction for the cost of freight
incurred to deliver the product to the customer.
|
|
(3)
|
|
Excludes PGM metals in catalytic converters.
|
|
(4)
|
|
Cars purchased by auto stores only.
|
|
(5)
|
|
Rolling mill utilization is based on effective annual production
capacity under current conditions of 580 thousand tons of finished
steel products.
|
|
|
|
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(In thousands)
|
|
(Unaudited)
|
|
|
|
August 31, 2018
|
|
August 31, 2017
|
|
Assets
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
4,723
|
|
|
$
|
7,287
|
|
Accounts receivable, net
|
|
169,418
|
|
|
138,998
|
|
Inventories
|
|
205,877
|
|
|
166,942
|
|
Other current assets
|
|
68,341
|
|
|
24,723
|
|
Total current assets
|
|
448,359
|
|
|
337,950
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
415,711
|
|
|
390,629
|
|
|
|
|
|
|
|
Goodwill and other assets
|
|
240,747
|
|
|
205,176
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,104,817
|
|
|
$
|
933,755
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term borrowings
|
|
$
|
1,139
|
|
|
$
|
721
|
|
Other current liabilities
|
|
253,538
|
|
|
175,539
|
|
Total current liabilities
|
|
254,677
|
|
|
176,260
|
|
|
|
|
|
|
|
Long-term debt, net of current maturities
|
|
106,237
|
|
|
144,403
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
73,793
|
|
|
75,599
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Total Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity
|
|
666,078
|
|
|
533,586
|
|
Noncontrolling interests
|
|
4,032
|
|
|
3,907
|
|
Total equity
|
|
670,110
|
|
|
537,493
|
|
Total liabilities and equity
|
|
$
|
1,104,817
|
|
|
$
|
933,755
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
This press release contains performance based on adjusted net income and
adjusted diluted earnings per share from continuing operations
attributable to SSI and adjusted consolidated, AMR and CSS operating
income, which are non-GAAP financial measures as defined under SEC
rules. As required by SEC rules, we have provided reconciliations of
these measures for each period discussed to the most directly comparable
U.S. GAAP measure. Management believes that providing non-GAAP financial
measures provides a meaningful presentation of our results from business
operations excluding adjustments for other asset impairment charges net
of recoveries, restructuring charges and other exit-related activities,
recoveries related to the resale or modification of certain previously
contracted shipments, and the income tax expense (benefit) allocated to
these adjustments, items which are not related to our underlying
business operational performance, and improves the period-to-period
comparability of our results from business operations. Adjusted
operating results in fiscal 2015 excluded the impact from the resale or
modification of the terms, each at significantly lower prices due to
sharp declines in selling prices, of certain previously contracted bulk
shipments for delivery during fiscal 2015. Recoveries resulting from
settlements with the original contract parties, which began in fiscal
2016 and concluded in fiscal 2018, are reported within selling, general
and administrative expense in the Consolidated Statements of Operations
and are also excluded from these measures. Further, management believes
that debt, net of cash is a useful measure for investors because, as
cash and cash equivalents can be used, among other things, to repay
indebtedness, netting this against total debt is a useful measure of our
leverage. These non-GAAP financial measures should be considered in
addition to, but not as a substitute for, the most directly comparable
U.S. GAAP measures.
|
($ in millions)
|
|
Quarter
|
|
Year
|
|
|
|
4Q18
|
|
4Q17
|
|
3Q18
|
|
2018
|
|
2017
|
|
Consolidated operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
38
|
|
|
$
|
22
|
|
|
$
|
51
|
|
|
$
|
149
|
|
|
$
|
56
|
|
|
Other asset impairment charges (recoveries), net
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
Restructuring charges and other exit-related activities
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
Recoveries related to the resale or modification of certain
previously contracted shipments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
Adjusted operating income
|
|
$
|
38
|
|
|
$
|
22
|
|
|
$
|
50
|
|
|
$
|
147
|
|
|
$
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMR operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
34
|
|
|
$
|
24
|
|
|
$
|
55
|
|
|
$
|
169
|
|
|
$
|
91
|
|
|
Other asset impairment charges (recoveries), net
|
|
1
|
|
|
1
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
Recoveries related to the resale or modification of certain
previously contracted shipments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
Adjusted AMR operating income(1)
|
|
$
|
34
|
|
|
$
|
24
|
|
|
$
|
54
|
|
|
$
|
168
|
|
|
$
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CSS operating income:
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
$
|
14
|
|
|
$
|
8
|
|
|
$
|
11
|
|
|
$
|
38
|
|
|
$
|
5
|
|
|
Other asset impairment charges (recoveries), net
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
Adjusted CSS operating income(1)
|
|
$
|
14
|
|
|
$
|
7
|
|
|
$
|
11
|
|
|
$
|
38
|
|
|
$
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) May not foot due to rounding.
|
|
|
|
Net income from continuing operations attributable to SSI
|
|
($ in millions)
|
|
Quarter
|
|
Year
|
|
|
|
4Q18
|
|
4Q17
|
|
3Q18
|
|
2018
|
|
2017
|
|
Net income from continuing operations attributable to SSI
|
|
$
|
59
|
|
|
$
|
18
|
|
|
$
|
37
|
|
|
$
|
156
|
|
|
$
|
45
|
|
|
Other asset impairment charges (recoveries), net
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
Restructuring charges and other exit-related activities
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
Recoveries related to the resale or modification of certain
previously contracted shipments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
Income tax expense (benefit) allocated to adjustments(1)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted net income from continuing operations attributable to SSI
|
|
$
|
59
|
|
|
$
|
18
|
|
|
$
|
36
|
|
|
$
|
154
|
|
|
$
|
43
|
|
|
|
|
(1)
|
|
Income tax allocated to adjustments reconciling Reported and
Adjusted net income from continuing operations attributable to SSI
and diluted earnings per share from continuing operations
attributable to SSI is determined based on a tax provision
calculated with and without the adjustments.
|
|
|
|
|
|
Diluted earnings per share from continuing operations
attributable to SSI
|
|
($ per share)
|
|
Quarter
|
|
Year
|
|
|
|
4Q18
|
|
4Q17
|
|
3Q18
|
|
2018
|
|
2017
|
|
Diluted earnings per share from continuing operations attributable
to SSI
|
|
2.08
|
|
|
0.65
|
|
|
1.31
|
|
|
5.46
|
|
|
1.60
|
|
|
Other asset impairment charges (recoveries), net
|
|
0.02
|
|
|
—
|
|
|
(0.05
|
)
|
|
(0.04
|
)
|
|
(0.03
|
)
|
|
Restructuring charges and other exit-related activities
|
|
(0.03
|
)
|
|
—
|
|
|
—
|
|
|
(0.02
|
)
|
|
—
|
|
|
Recoveries related to the resale or modification of previously
contracted shipments
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
(0.01
|
)
|
|
(0.04
|
)
|
|
Income tax expense (benefit) allocated to adjustments(1)
|
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Adjusted diluted earnings per share from continuing operations
attributable to SSI(2)
|
|
$
|
2.06
|
|
|
$
|
0.63
|
|
|
$
|
1.26
|
|
|
$
|
5.39
|
|
|
$
|
1.53
|
|
|
|
|
(1)
|
|
Income tax allocated to the aggregate adjustments reconciling
reported and adjusted diluted earnings per share from continuing
operations attributable to SSI is determined based on a tax
provision calculated with and without the adjustments.
|
|
(2)
|
|
May not foot due to rounding.
|
|
|
|
|
|
Debt, net of cash
|
|
|
|
|
|
|
|
($ in thousands)
|
|
|
|
|
|
|
|
|
|
August 31, 2018
|
|
August 31, 2017
|
|
May 31, 2018
|
|
Short-term borrowings
|
|
$
|
1,139
|
|
|
$
|
721
|
|
|
$
|
1,146
|
|
Long-term debt, net of current maturities
|
|
106,237
|
|
|
144,403
|
|
|
171,545
|
|
Total debt
|
|
107,376
|
|
|
145,124
|
|
|
172,691
|
|
Less: cash and cash equivalents
|
|
4,723
|
|
|
7,287
|
|
|
10,090
|
|
Total debt, net of cash
|
|
$
|
102,653
|
|
|
$
|
137,837
|
|
|
$
|
162,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Looking Statements
Statements and information included in this press release that are not
purely historical are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934 and are made pursuant
to the “safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. Except as noted herein or as the context may
otherwise require, all references in this press release to “we,” “our,”
“us,” “Company,” “Schnitzer,” and “SSI” refer to Schnitzer Steel
Industries, Inc. and its consolidated subsidiaries.
Forward-looking statements in this press release include statements
regarding future events or our expectations, intentions, beliefs and
strategies regarding the future, which may include statements regarding
trends, cyclicality and changes in the markets we sell into; the
Company’s outlook, growth initiatives or expected results or objectives,
including pricing, margins, sales volumes and profitability; strategic
direction or goals; targets; changes to manufacturing and production
processes; the cost of and the status of any agreements or actions
related to our compliance with environmental and other laws; expected
tax rates, deductions and credits and the impact of federal tax reform;
the impact of tariffs, quotas and other trade actions; the realization
of deferred tax assets; planned capital expenditures; liquidity
positions; ability to generate cash from continuing operations; the
potential impact of adopting new accounting pronouncements; obligations
under our retirement plans; benefits, savings or additional costs from
business realignment, cost containment and productivity improvement
programs; and the adequacy of accruals.
Forward-looking statements by their nature address matters that are, to
different degrees, uncertain, and often contain words such as “outlook,”
“target,” “aim,” “believes,” “expects,” “anticipates,” “intends,”
“assumes,” “estimates,” “evaluates,” “may,” “will,” “should,” “could,”
“opinions,” “forecasts,” “projects,” “plans,” “future,” “forward,”
“potential,” “probable,” and similar expressions. However, the absence
of these words or similar expressions does not mean that a statement is
not forward-looking.
We may make other forward-looking statements from time to time,
including in reports filed with the Securities and Exchange Commission,
press releases, presentations and on public conference calls. All
forward-looking statements we make are based on information available to
us at the time the statements are made, and we assume no obligation to
update any forward-looking statements, except as may be required by law.
Our business is subject to the effects of changes in domestic and global
economic conditions and a number of other risks and uncertainties that
could cause actual results to differ materially from those included in,
or implied by, such forward-looking statements. Some of these risks and
uncertainties are discussed in “Item 1A. Risk Factors” in our most
recent annual report on Form 10-K and in our quarterly reports on Form
10-Q. Examples of these risks include: potential environmental cleanup
costs related to the Portland Harbor Superfund site or other locations;
the cyclicality and impact of general economic conditions; changing
conditions in global markets including the impact of tariffs, quotas and
other trade actions; volatile supply and demand conditions affecting
prices and volumes in the markets for both our products and raw
materials we purchase; imbalances in supply and demand conditions in the
global steel industry; the impact of goodwill impairment charges; the
impact of long-lived asset and cost and equity method investment
impairment charges; inability to sustain the benefits from productivity
and restructuring initiatives; difficulties associated with acquisitions
and integration of acquired businesses; customer fulfillment of their
contractual obligations; increases in the relative value of the U.S.
dollar; the impact of foreign currency fluctuations; potential
limitations on our ability to access capital resources and existing
credit facilities; restrictions on our business and financial covenants
under our bank credit agreement; the impact of consolidation in the
steel industry; inability to realize expected benefits from investments
in technology; freight rates and the availability of transportation; the
impact of equipment upgrades, equipment failures and facility damage on
production; product liability claims; the impact of legal proceedings
and legal compliance; the adverse impact of climate change; the impact
of not realizing deferred tax assets; the impact of tax increases and
changes in tax rules; the impact of one or more cybersecurity incidents;
environmental compliance costs and potential environmental liabilities;
inability to obtain or renew business licenses and permits or renew
facility leases; compliance with climate change and greenhouse gas
emission laws and regulations; reliance on employees subject to
collective bargaining agreements; and the impact of the underfunded
status of multiemployer plans in which we participate.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181024005238/en/
Source: Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc.
Investor Relations:
Michael
Bennett, 503-323-2811
[email protected]
or
Company
Info:
www.schnitzersteel.com
[email protected]