Schnitzer reports improved results
Schnitzer Steel Industries, Inc. reported net income
for the fiscal 2006 third quarter ended May 31, 2006 of $30 million,
or $ .98 per diluted share.
Net income was reduced by a charge of $4 million
relating to an additional reserve taken by the Company for its current
estimate of the monetary component of the settlement of the ongoing
investigations into the Company’s past payment practices in
Excluding the charge, net income was $34 million,
or $1.11 per diluted share, a 62% increase from the second quarter.
Net income was reduced by a charge of $15 million
relating to a reserve taken for the estimated monetary component
of the settlement of the ongoing SEC and Department of Justice investigations
into the Company’s past payment practices in Asia. Excluding
the gain from the disposition of joint venture assets and the charge
for the investigation reserve, year-to-date net income was $74 million.
Revenues from the Metals Recycling Business increased
30% over the second quarter of 2006. The increase was a result of
higher sales prices for ferrous and non-ferrous materials and a
28% increase in non-ferrous sales volumes.
The worldwide markets for scrap metal strengthened
during the quarter, and export prices were as good as or higher
than domestic prices.
Operating income improved 77% from the second
quarter even with ferrous shipping volumes slightly lower than anticipated.
The improvement was due primarily to the impact of higher non-ferrous
prices and volumes and a reduction in processing costs related to
an increase in ferrous volumes processed.