Boston, MA 04/04/2013 (wallstreetpr) – Schnitzer Steel Industries (NASDAQ:SCHN) is a manufacturer and exporter of recycled ferrous metal products globally. The company functions in three critical segments – Auto Parts Business (APB), Metal Recycling Business (MRB), and Steel Manufacturing Business (SMB). The Metal Recycling Business segment for the company collects, buys, recycles, sells, and brokers ferrous scrap metals and also involved in processing large and mixed pieces of scrap metal into fine, smaller pieces by sorting, crushing, shredding, shearing, and torching. The SMB segment manufactures a wide range of finished steel products with recycled raw materials and other metals. The APB segment collects used and salvaged automobiles and sells the serviceable, used auto parts from such vehicles.
Schnitzer Steel Industries announced its Q2 earnings yesterday, reporting a second quarter adjusted earnings per share of $0.36. This reflects higher prices, higher volumes, lower cost, and improved margins. The key drivers behind such growth are better-than-expected operational performances in both auto parts and metals recycling divisions, lower corporate expenses, and an affirmative impact from the additional tax benefits. From an industrial perspective, the company witnessed a stronger demand for its products, resulting in higher volume of sales and higher prices. Across both the divisions, the company reported a growth in its operating income with higher sales volumes and strategic maintenance downtime.
At the same time, the fiscal second quarter net income of Schnitzer Steel Industries dropped by 10%, pulling down its restructuring charges significantly. However, the adjusted earnings of the company topped the estimates of the analysts.