Schnitzer Steel net income up 94%

Portland, OR— Schnitzer Steel Industries, Inc. reported net income of $36.0 million or $1.15 per diluted share on revenues of $215.7 million for its fiscal 2005 second quarter that ended February 28, 2005. In comparison, the Company reported net income of $18.5 million or $0.60 per diluted share on revenues of $161.6 million for the second quarter of fiscal 2004.

For the first six months of fiscal 2005, Schnitzer Steel reported net income of $78.9 million or $2.53 per diluted share on revenues of $414.7 million. These amounts compare to net income of $30.7 million or $0.99 per diluted share on revenues of $290.0 million that were reported during the first half of fiscal 2004.

Metals Recycling Business: The Company’s wholly-owned Metals Recycling Business’ second quarter 2005 operating income was $39.5 million compared to $13.2 million in the second quarter of fiscal 2004.

Joint Venture Businesses: Second quarter 2005 operating income from joint venture businesses was $16.2 million, compared to $8.7 million reported for last year’s second quarter. The increase in operating profit was principally caused by higher average selling prices and an increase in the quarterly ferrous metal sales volumes.

Auto Parts Business: During the second quarter of fiscal 2005, the Auto Parts Business reported operating income of $7.2 million representing an increase of 42% over the second quarter of fiscal 2004.