On Wednesday, Portland, Oregon-based Schnitzer Steel Industries reported adjusted earnings per share of $0.36 for its fiscal 2013 second quarter ended February 28, 2013. The results compare with an adjusted loss per share of $0.02 in Q1 and $0.35 in Q2 2012. Schnitzer said that its performance exceeded the Q2 market outlook issued in February due to better than anticipated operational performance in the Metals Recycling and Auto Parts Businesses.
Tamara Lundgren, President and CEO, commented that Schnitzer's steel business is benefitting from a strengthening of construction demand on the West Coast and Q2 2013 was the first fiscal Q2 that was profitable in the steel segment since the global financial crisis. The Steel Manufacturing Business generated $1 million in operating income on sequentially lower selling volumes, primarily due to the typical seasonal slowdown in demand during Q2. Finished steel sales volume of 96,000 tons decreased 26 percent from Q1 of fiscal 2013. Average net sales prices for finished steel products of $690/nt approximated Q1. Compared to Q1, higher costs for raw materials, a lower utilization rate resulting from planned maintenance and a typical seasonal slowdown in demand during the quarter resulted in the operating income of $1 million.
In Schnitzer's Metals Recycling Business, operating income per ferrous ton was approximately $13, an increase of 117 percent from Q1 of fiscal 2013 due to a combination of higher selling prices and sales volume for both ferrous and nonferrous products.
The Auto Parts Business (APB) improved its operating income margin from Q1, excluding the adverse impact related to the new sites added during the quarter which include transaction, integration and startup costs. In addition, APB increased its car purchase volume to 88,000 cars, reflecting an 11 percent sequential increase which includes a partial quarter contribution from new sites.