Schnitzer Steel Industries Inc (SCHN) Quote

Time to load.

These cashflow models imply Schnitzer Steel Industries $SCHN has 20% upside before earnings Thursday:

Fair Value Source

I think this stock is over valued at the current price of 15.90.- $10 to $12 more realistic.
The volume has been steadily declining and world scrap prices are soft.
I see no demand increase in the steel business to bolster scrap prices.
In fact, I think the export market to Chna, their main customer, will continue to shrink
as the Chinese steel market matures and the country generates more of their own scrap,
further reducing SCHN revenue. They talk of restructuring but it looks like more losses to me.
Steelman3

Schnitzer Reports Third Quarter 2015 Financial Results


Improved Operating Performance in All Businesses Sequentially

Strong Operating Cash Flow and Progress on Cost Reduction and Productivity Initiatives

.

Business Wire
Schnitzer Steel Industries, Inc.
June 30, 2015 8:30 AM








?
?
?
?

. ?
?
?
.
..
.
.

PORTLAND, Ore.--(BUSINESS WIRE)--

Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) today reported financial results for its fiscal 2015 third quarter ended May 31, 2015.

Our third quarter results reflected benefits from the cost reduction and productivity initiatives we announced in early April which led to improved sequential operating performance in all of our businesses. In Metals Recycling, ferrous volumes increased 29% and nonferrous sales volumes increased 21% versus the second quarter. Due to the rapid decline in ferrous selling prices in February, which impacted shipments in the third quarter, average inventory costs did not decline as quickly as selling prices, which led to an estimated $14 per ton, or $13 million, adverse impact of average inventory accounting which approximated the adverse impact in the second quarter. In our Auto Parts Business, higher seasonal retail activity and early benefits achieved from productivity improvements led to significantly improved profitability. Our Steel Manufacturing Business generated higher sales volumes and increased operating income due to steadily improving demand in West Coast construction markets.

Consolidated Financial Performance

The Company announced break-even adjusted earnings per share from continuing operations for the third quarter, which compares to second quarter adjusted loss per share of $0.30 and prior year third quarter adjusted earnings per share of $0.19. Adjustments included charges for restructuring and exit-related costs and asset impairments. Third quarter adjusted results included an adverse impact from average inventory accounting of approximately $0.40 per share which compares to a second quarter adverse impact of $0.36 per share and a prior year third quarter adverse impact of $0.09 per share. Based on current market trends, estimated adverse inventory effects are expected to be substantially reduced in the fourth quarter.

The Company reported third quarter loss per share from continuing operations of $0.31, including $6 million in restructuring and exit-related costs and $1 million in asset impairments. This compares to the second quarter reported loss per share of $7.08 and third quarter fiscal 2014 reported earnings per share of $0.13.

Strong Positive Operating Cash Flow and Significant Progress on Cost Reductions and Productivity Initiatives

The Company generated positive operating cash flow in the third quarter of $64 million which enabled the Company to reduce total debt to $263 million, the lowest level since first quarter of fiscal 2011.

During the quarter, the Company made significant progress on the execution of its targeted $60 million in annual cost savings and productivity improvements, generating approximately $10 million in benefits. The Company expects to achieve an additional $5 million of quarterly benefits by the fourth quarter of fiscal 2015, which is ahead of schedule and equates to a targeted quarterly run rate of approximately $15 million.

"Our ability to deliver on a wide range of cost savings and productivity initiatives contributed to improved sequential financial results in the third quarter. We expect the benefits from these initiatives, combined with more stable market conditions, to provide momentum for further improvements in our performance,” said Tamara Lundgren, President and Chief Executive Officer. “In addition, we expect to complete the consolidation of our Auto Parts and Metals Recycling Businesses during the fourth quarter, creating the opportunity to benefit from further commercial and operational synergies,” added Lundgren.



Summary Results

($ in millions, except per share amounts)
Quarter
3Q15 3Q14 Change 2Q15 Change
Revenues $ 467 $ 635 (26 )% $ 437 7 %

Operating Income (Loss) $ (4 ) $ 3 NM $ (201 ) (98 )%
Goodwill impairment charge — — NM 141 NM
Other asset impairment charges 1 1 141 % 44 (97 )%
Restructuring charges and other exit-related costs 6 3 116 % 5 11 %
Resale or modification of previously contracted shipments — — NM 1 NM
Adjusted Operating Income (Loss)(1)(3) $ 3 $ 6 (45 )% $ (9 ) NM

Net Income (Loss) attributable to SSI $ (10 ) $ 3 NM $ (196 ) (95 )%

Net Income (Loss) from continuing operations attributable to SSI $ (8 ) $ 3 NM $ (191 ) (96 )%

Adjusted Net Income (Loss) from continuing operations attributable to SSI(2) $
—
$ 5 NM $ (8 ) (99 )%

Net Income (Loss) per share attributable to SSI $ (0.36 ) $ 0.12 NM $ (7.24 ) (95 )%

Net Income (Loss) per share from continuing operations attributable to SSI $ (0.31 ) $ 0.13 NM $ (7.08 ) (96 )%



Adjusted diluted EPS from continuing operations attributable to SSI(2) $
—
$ 0.19 NM $ (0.30 ) (99 )%


(1) Adjusted operating income excludes the impact of goodwill and other asset impairments, restructuring, other exit-related costs, and the resale or modification of certain previously contracted ferrous bulk shipments. See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.

(2) See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
(3) May not foot due to rounding.

NM = not meaningful



Metals Recycling Business

Summary of Metals Recycling Business Results
($ in millions, except selling prices and data per ton; Fe volumes 000s long tons; NFe volumes Ms lbs)
Quarter
3Q15 3Q14 Change 2Q15 Change
Total Revenues $ 363 $ 517 (30 )% $ 341 7 %

Ferrous Revenues $ 258 $ 387 (33 )% $ 244 6 %
Ferrous Volumes 971 1,024 (5 )% 750 29 %
Avg. Net Ferrous Sales Prices ($/LT)(1) $ 239 $ 346 (31 )% $ 295 (19 )%

Nonferrous Revenues $ 101 $ 123 (18 )% $ 91 11 %
Nonferrous Volumes 130 139 (6 )% 108 21 %
Avg. Net Nonferrous Sales Prices ($/lb)(1) $ 0.74 $ 0.86 (14 )% $ 0.81 (9 )%

Operating Income (Loss)(2) $ 1 $ 4 (73 )% $ (187 ) NM
Operating Income (Loss) per Fe ton $ 1 $ 4 (71 )% $ (249 ) NM

Adjusted Operating Income (Loss)(3) $ 2 $ 4 (38 )% $ (1 ) NM
Adjusted Operating Income (Loss) per Fe ton $ 2 $ 4 (35 )% $ (2 ) NM

(1) Sales prices are shown net of freight.
(2) Operating income does not include the impact of restructuring charges and other exit-related costs.
(3) Adjusted operating income excludes the impact of goodwill and other asset impairments, and the resale or modification of certain previously contracted ferrous bulk shipments. See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.

NM = not meaningful



Sales Volumes: Ferrous sales volumes of 971 thousand tons in the third quarter increased 29% from the second quarter, primarily due to an increase in export sales and timing of shipments. Nonferrous sales volumes of 130 million pounds increased 21% sequentially, driven by resolution of the labor slowdown at West Coast ports. As compared to the prior year, both ferrous and nonferrous volumes were slightly lower.

In total, export customers accounted for 68% of ferrous sales volumes in the third quarter, an increase from 55% in the second quarter. Ferrous and nonferrous products were shipped to 16 countries, with Turkey, India and South Korea the top export destinations for ferrous shipments.

Pricing: While market prices stabilized during the quarter, average ferrous selling prices declined $56, or 19%, sequentially, primarily due to the sharp drop in ferrous selling prices during February which impacted third quarter shipments. Ferrous prices increased in the second half of the third quarter. As compared to the prior year quarter, average selling prices declined $107 per ton, or 31%, reflecting the weaker export demand and excess steel production globally. Nonferrous prices declined 9% sequentially and 14% as compared to the prior year quarter, similarly reflecting weaker global demand.

Margins: Adjusted operating income per ton of $2 in the third quarter improved sequentially primarily due to benefits from cost reductions and productivity initiatives, as well as higher shipped volumes, partially offset by lower average selling prices. Due to the rapid decline in ferrous selling prices in February which impacted shipments in the third quarter, average inventory costs did not decline as quickly as purchase prices for raw materials, which led to an estimated $14 per ton, or $13 million, adverse impact of average inventory accounting which approximated the adverse impact in the second quarter. Based on current market trends, estimated adverse inventory effects are expected to be substantially reduced in the fourth quarter. Cost reduction and productivity improvement actions commenced during the third quarter benefited results by approximately $5 million and are expected to further benefit operating performance in the fourth quarter of fiscal 2015 and into fiscal 2016.

Auto Parts Business

Summary of Auto Parts Business Results
($ in millions, volume 000s)
Quarter
3Q15 3Q14 Change 2Q15 Change
Revenues $ 60 $ 80 (24 )% $ 66 (9 )%
Operating Income (Loss)(1) $ 3 $ 8 (59 )% $ (2 ) NM

Car Purchase Volumes 79 93 (15 )% 78 1 %

(1) Operating income does not include the impact of restructuring charges and other exit-related costs.

NM = not meaningful



Revenues: Revenues in the third quarter decreased 9% from the second quarter, primarily reflecting the significant impact of lower nonferrous commodity prices, partially offset by seasonally higher retail activity. Compared to the prior year third quarter, revenues declined 24% due to the significant impact of lower commodity prices and the resulting adverse impact on car purchase volumes.

Margins: Operating income of $3 million, or 5% of revenues, improved substantially from the second quarter, primarily due to seasonally higher retail activity and lower operating costs. Operating performance continued to be adversely impacted by an estimated $2 million from average inventory accounting which is expected to be substantially reduced in the fourth quarter based on current market trends. Recently announced cost reduction and productivity initiatives delivered approximately $4 million of benefits in the third quarter and are expected to further improve operating performance in the fourth quarter of fiscal 2015 and into fiscal 2016. The productivity benefits in the third quarter were partially offset by the impact of lower nonferrous commodity prices of $2 million.

Steel Manufacturing Business

Summary of Steel Manufacturing Business Results
($ in millions, except selling prices; volume 000s of short tons)
Quarter
3Q15 3Q14 Change 2Q15 Change
Revenues $ 95 $ 102 (7 )% $ 93 2 %
Operating Income $ 4 $ 5 (5 )% $ 4 14 %

Avg. Net Sales Prices ($/ST) $ 615 $ 686 (10 )% $ 651 (6 )%
Finished Goods Sales Volumes 142 135 5 % 131 8 %
Rolling Mill Utilization 69 % 72 % 76 %


Sales Volumes: Finished steel sales volumes of 142 thousand tons increased 8% from the second quarter and 5% from the prior year third quarter levels, driven by improving nonresidential construction demand which more than offset the impact of imports. Utilization of 69% was lower sequentially due to a scheduled maintenance outage.

Pricing: Average net sales prices for finished steel products decreased by $36 per ton sequentially and $71 per ton as compared to the prior year third quarter, reflecting primarily the sharp drop in scrap prices coming into the quarter.

Margins: Operating income of $4 million increased 14% sequentially due to higher shipped volumes which offset lower average selling prices. As compared to the prior year third quarter, the impact on operating income of the sharp decline in selling prices more than offset the higher sales volumes.

Cost Reduction and Productivity Initiatives

As previously announced, during the third quarter the Company commenced two strategic initiatives:

(i) A cost reduction, capacity reduction and productivity improvement initiative which, in the aggregate, is intended to improve financial performance by $60 million annually by the end of 2016; and

(ii) The integration of the Auto Parts and Metals Recycling Businesses into a single division during the fourth quarter of fiscal 2015 which is intended to further optimize the efficiencies in our operating platform, enable additional synergies to be captured throughout our supply chain and global sales channel, and more effectively leverage our shared services platform.

About half of the approximately $60 million in targeted benefits is expected to come from our Metals Recycling Business through a combination of equipment idling, including reduced depreciation, and SG&A reductions. Another approximately 40% is expected to come from our Auto Parts Business through the closing of seven stores, SG&A reductions and productivity improvement initiatives. The balance is expected to come from our Corporate Shared Services Division through the reduction of organizational layers and leveraging support functions across the Company’s operating platform. We delivered approximately $10 million of benefits in the third quarter and expect a quarter of the total savings target, or $15 million, to be achieved in the fourth quarter of fiscal 2015, with the remainder to be delivered by the end of fiscal 2016.

In connection with our cost reduction initiatives, we expect to incur restructuring charges of approximately $10 million.

Corporate Items

Consolidated SG&A costs were reduced by $6 million, or 12%, as compared to the prior year quarter primarily due to benefits from the cost savings and productivity initiatives and a legal settlement resulting in an insurance reimbursement of $2 million in the third quarter of fiscal 2015.

Operating cash flow of $64 million during the third quarter enabled a continuation in the reduction of debt outstanding while funding our quarterly dividend and capital expenditures. Net debt of $254 million at the end of the third quarter was $51 million lower than at the end of the second quarter.

The Company anticipates a full year effective tax rate of 4%, primarily driven by estimated valuation allowances on deferred tax assets.

Discontinued Operations

In the third quarter of fiscal 2015, the Company closed seven Auto Parts stores, of which six are reported in discontinued operations and one store was absorbed into the operations of existing retail stores nearby. The loss in the fiscal 2015 third quarter from discontinued operations, net of tax, was $1 million, or $0.05 per share, which compares to a loss from discontinued operations of $0.01 per share, in the third quarter of fiscal 2014.

Analysts' Conference Call: Third Quarter of Fiscal 2015

A conference call and slide presentation to discuss results will be held today, June 30, 2015, at 11:30 a.m. EDT hosted by Tamara Lundgren, President and Chief Executive Officer, and Richard Peach, Chief Financial Officer. The call and the slides will be webcast and accessible on the Company's website at www.schnitzersteel.com.

Summary financial data is provided in the following pages. The slides and related materials will be available prior to the call on the website.


SCHNITZER STEEL INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
(in thousands)
(Unaudited)

For the Three Months Ended For the Nine Months Ended
May 31, 2015 February 28, 2015 May 31, 2014 May 31, 2015 May 31, 2014

REVENUES:

Metal Recycling Business:
Ferrous sales $ 257,635 $ 243,999 $ 386,826 $ 839,212 $ 1,165,487
Nonferrous sales 101,386 91,055 123,407 305,033 357,394
Other sales 4,020 5,489 6,608 15,616 19,959
TOTAL MRB SALES 363,041 340,543 516,841 1,159,861 1,542,840

Auto Parts Business 60,291 65,995 79,602 203,577 227,695
Steel Manufacturing Business 94,939 93,126 102,039 283,284 271,618
Intercompany sales and eliminations (50,962 ) (62,215 ) (63,009 ) (188,340 ) (196,990 )
Total Revenues $ 467,309 $ 437,449 $ 635,473 $ 1,458,382 $ 1,845,163


OPERATING INCOME (LOSS):
Adjusted Metal Recycling Business(1) $ 2,298 $ (1,218 ) $ 3,736 $ 8,583 $ 15,860
Auto Parts Business 3,145 (1,970 ) 7,702 3,812 19,981
Steel Manufacturing Business 4,343 3,799 4,594 14,350 9,912
Adjusted segment operating income(2) 9,786 611 16,032 26,745 45,753

Corporate expense (7,554 ) (8,488 ) (10,393 ) (25,035 ) (29,096 )
Intercompany eliminations 1,007 (1,534 ) 252 (924 ) (966 )
Adjusted operating income (loss) 3,239 (9,411 ) 5,891 786 15,691

Goodwill impairment charge — (141,021 ) — (141,021 ) —
Other asset impairment charges (1,281 ) (43,838 ) (532 ) (45,119 ) (1,460 )
Restructuring charges and other exit-related costs (5,978 ) (5,394 ) (2,762 ) (11,964 ) (6,444 )
Resale or modification of previously contracted shipments — (1,347 ) — (6,928 ) —
Total operating income (loss) $ (4,020 ) $ (201,011 ) $ 2,597 $ (204,246 ) $ 7,787

(1) Adjusted operating income excludes the impact of goodwill and other asset impairments, and the resale or modification of certain previously contracted ferrous bulk shipments. 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 costs.



SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)

For the Three Month Ended For the Nine Months Ended
May 31, 2015 February 28, 2015 May 31, 2014 May 31, 2015 May 31, 2014
Revenues $ 467,309 $ 437,449 $ 635,473 $ 1,458,382 $ 1,845,163
Cost of goods sold 424,312 406,649 584,420 1,338,976 1,693,565
Selling, general and administrative 39,798 42,167 45,309 126,696 136,831
Income from joint ventures (40 ) (609 ) (147 ) (1,148 ) (924 )
Goodwill impairment charge — 141,021 — 141,021 —
Other asset impairment charges 1,281 43,838 532 45,119 1,460
Restructuring charges and other exit-related costs 5,978 5,394 2,762 11,964 6,444
Operating income (loss) (4,020 ) (201,011 ) 2,597 (204,246 ) 7,787
Interest expense (2,375 ) (2,295 ) (2,529 ) (7,044 ) (7,944 )
Other income, net 84 1,993 492 3,011 604
Income (loss) from continuing operations before income taxes (6,311 ) (201,313 ) 560 (208,279 ) 447
Income tax benefit (expense) (1,396 ) 9,673 3,894 8,171 3,266
Income (loss) from continuing operations (7,707 ) (191,640 ) 4,454 (200,108 ) 3,713
Loss from discontinued operations, net of tax (1,234 ) (4,242 ) (330 ) (6,314 ) (2,315 )
Net income (loss) (8,941 ) (195,882 ) 4,124 (206,422 ) 1,398
Net (income) loss attributable to noncontrolling interests (687 ) 240 (1,014 ) (1,318 ) (2,726 )
Net income (loss) attributable to SSI $ (9,628 ) $ (195,642 ) $ 3,110 $ (207,740 ) $ (1,328 )

Net income (loss) per share attributable to SSI:
Basic:
Income (loss) per share from continuing operations attributable to SSI $ (0.31 ) $ (7.08 ) $ 0.13 $ (7.46 ) $ 0.04
Loss per share from discontinued operations attributable to SSI

(0.05 )


(0.16
)

(0.01 )

(0.23 )

(0.09 )

Net income (loss) per share attributable to SSI
$ (0.36 ) $ (7.24 ) $ 0.12 $ (7.69 ) $ (0.05 )

Diluted:

Income (loss) per share from continuing operations attributable to SSI $ (0.31 ) $ (7.08 ) $ 0.13 $ (7.46 ) $ 0.04
Loss per share from discontinued operations attributable to SSI

(0.05 )

(0.16 )

(0.01 )

(0.23 )

(0.09 )

Net income (loss) per share attributable to SSI
$ (0.36 ) $ (7.24 ) $ 0.12 $ (7.69 ) $ (0.05 )

Weighted average number of common shares:
Basic 27,043 27,020 26,853 27,003 26,811
Diluted 27,043 27,020 27,017 27,003 26,811
Dividends declared per common share $ 0.1875 $ 0.1875 $ 0.1875 $ 0.5625 0.5625



SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)
Fiscal Fiscal
1Q15 2Q15 3Q15 2015 1Q14 2Q14 3Q14 4Q14 2014
Metals Recycling Business
Ferrous Selling Prices ($/LT)(1)
Domestic $ 344 $ 305 $ 245 $ 300 $ 356 $ 374 $ 354 $ 349 $ 358
Export $ 319 $ 286 $ 236 $ 278 $ 344 $ 361 $ 341 $ 352 $ 350
Average $ 328 $ 295 $ 239 $ 286 $ 348 $ 365 $ 346 $ 351 $ 353

Ferrous Sales Volume (LT)
Domestic 333,798 334,263 307,480 975,541 322,531 328,005 344,526 328,308 1,323,369
Export 604,626 415,765 663,456 1,683,847 655,072 701,259 679,009 763,608 2,798,948
Total 938,424 750,028 970,936 2,659,388 977,603 1,029,264 1,023,535 1,091,916 4,122,317

Nonferrous Average Price ($/LB)(1) $ 0.85 $ 0.81 $ 0.74 $ 0.80 $ 0.89 $ 0.86 $ 0.86 $ 0.85 $ 0.86

Nonferrous Sales Volume (LB, in 000s) 127,473 108,126 130,337
365,936
123,941 135,935 139,273 155,659 554,808

Steel Manufacturing Business
Sales Prices ($/ST)(1)(2)
Average $ 683 $ 651 $ 615 $ 648 $ 657 $ 676 $ 686 $ 688 $ 677

Sales Volume (ST)(2)
Rebar 79,065 74,928 100,413 254,406 83,618 83,838 85,633 101,076 354,165
Coiled Products 40,361 49,403 35,477 125,241 38,322 25,656 41,892 46,682 152,552
Merchant Bar and Other 7,698 6,705 5,659 20,062 6,222 5,305 6,984 7,979 26,490
Total 127,124 131,036 141,549 399,709 128,162 114,799 134,509 155,737 533,207

Rolling Mill Utilization 72 % 76 % 69 % 73 % 65 % 67 % 72 % 76 % 70 %

Auto Parts Business
Car purchase volumes (000) 92 78 79 249 86 80 93 101 360
Number of self-service locations at end of quarter 56 56 55 55 56 55 55 56 56

(1) Price information is shown after a reduction for the cost of freight incurred to deliver the product to the customer
(2) Excludes billet sales



SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
May 31, 2015 August 31, 2014

Assets

Current Assets:
Cash and cash equivalents $ 8,929 $ 25,672
Accounts receivable, net 117,311 189,359
Inventories 197,008 216,172
Other current assets 39,089 32,729
Total current assets 362,337 463,932

Property, plant and equipment, net 432,309 523,433

Goodwill and other assets 215,653 367,845

Total assets $ 1,010,299 $ 1,355,210


Liabilities and Equity

Current liabilities:
Short-term borrowings $ 637 $ 523
Other current liabilities 126,848 176,747
Total current liabilities 127,485 177,270

Long-term debt 262,746 318,842

Other long-term liabilities 83,754 83,121

Equity:
Total Schnitzer Steel Industries, Inc. ("SSI") shareholders' equity 532,066 770,784
Noncontrolling interests 4,248 5,193
Total equity 536,314 775,977
Total liabilities and equity $ 1,010,299 $ 1,355,210


Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined under SEC rules such as adjusted consolidated operating income (loss), adjusted MRB operating income (loss), adjusted net income (loss) from continuing operations attributable to SSI and adjusted diluted earnings per share from continuing operations attributable to SSI. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable U.S. GAAP measures. Management believes that each of the foregoing adjusted non-GAAP financial measures provides a meaningful presentation of the Company's results from its core business operations excluding adjustments for a goodwill impairment charge, other asset impairment charges and restructuring and other exit-related costs that are not related to the Company's ongoing core business operations and improves the period-to-period comparability of the Company's results from its core business operations. In addition, to improve comparability of our operating performance between periods, these measures also exclude the impact on operating results in fiscal 2015 from the resale or modification of the terms during the first and second quarters of 2015 of certain previously contracted ferrous bulk shipments. Due to the sharp decline in selling prices that occurred during the first and second quarters of fiscal 2015, the revised prices associated with these shipments were significantly lower than the prices in the original sales contracts entered into between August and November 2014. 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.


Operating Income (Loss)
($ in millions) Quarter
3Q15 2Q15 3Q14
Consolidated Operating Income (Loss):
Operating Income (Loss) $ (4 ) $ (201 ) $ 3
Goodwill impairment charge — 141 —
Other asset impairment charges 1 44 1
Restructuring charges and other exit-related costs 6 5 3
Resale or modification of previously contracted shipment — 1 —
Adjusted Operating Income (Loss)(1) $ 3 $ (9 ) $ 6

MRB Operating Income (Loss):
Operating Income (Loss) $ 1 $ (187 ) $ 4
Goodwill impairment charge — 141 —
Other asset impairment charges 1 43 —
Resale or modification of previously contracted shipment — 1 —
Adjusted Operating Income (Loss)(1) $ 2 $ (1 ) $ 4



Net Income (Loss) from continuing operations attributable to SSI
($ in millions) Quarter
3Q15 2Q15 3Q14
Net Income (Loss) from continuing operations attributable to SSI $ (8 ) $ (191 ) $ 3
Goodwill impairment charge, net of tax — 130 —
Other asset impairment charges, net of tax 1 44 —
Restructuring charges and other exit-related costs, net of tax 7 6 1
Resale or modification of previously contracted shipment, net of tax — 3 —
Adjusted Net Income (Loss) from continuing operations attributable to SSI(1) $ — $ (8 ) $ 5

(1) May not foot due to rounding.



Diluted Earnings per share attributable to SSI
($ per share) Quarter
3Q15 2Q15 3Q14
Net Income (Loss) per share attributable to SSI $ (0.36 ) $ (7.24 ) $ 0.12
Less: Loss per share from discontinued operations attributable to SSI (0.05 ) (0.16 ) (0.01 )
Net Income (Loss) per share from continuing operations attributable to SSI(1) (0.31 ) (7.08 ) 0.13
Goodwill impairment charge, net of tax, per share — 4.80 —
Other asset impairment charges, net of tax, per share 0.05 1.63 0.01
Restructuring charges and other exit-related costs, net of tax, per share 0.25 0.23 0.05
Resale or modification of previously contracted shipment, net of tax, per share
—
0.12 —
Adjusted Diluted EPS from continuing operations attributable to SSI(1) $
—




$
(0.30
) $ 0.19

(1) May not foot due to rounding.



Debt, Net of Cash
($ in thousands)
May 31, 2015 August 31, 2014
Short-term borrowings $ 637 $ 523
Long-term debt, net of current maturities 262,746 318,842
Total debt 263,383 319,365
Less: cash and cash equivalents 8,929 25,672
Total debt, net of cash $ 254,454 $ 293,693


About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled metal products in the United States with operating facilities located in 24 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 and steel manufacturing. With an effective annual production capacity of approximately 800,000 tons, the Company's steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company began operations in 1906 in Portland, Oregon.

Safe Harbor for 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 to “we,” “our,” “us” and “SSI” refer to the Company and its consolidated subsidiaries.

Forward-looking statements in this press release include statements regarding our expectations, intentions, beliefs and strategies regarding the future, which may include statements regarding trends, cyclicality and changes in the markets we sell into; strategic direction or initiatives; 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; the realization of deferred tax assets; the anticipated value of goodwill or other intangible assets; planned capital expenditures; liquidity positions; ability to generate cash from continuing operations; the potential impact of adopting new accounting pronouncements; expected results, including pricing, sales volumes and profitability; obligations under our retirement plans; benefits, savings or additional costs from business realignment, cost containment and productivity improvement programs; and the adequacy of accruals.

When used in this report, the words “believes,” “expects,” “anticipates,” “intends,” “assumes,” “estimates,” “evaluates,” “may,” “could,” “opinions,” “forecasts,” “future,” “forward,” “potential,” “probable,” and similar expressions are intended to identify forward-looking statements.

We may make other forward-looking statements from time to time, including in reports filed with the Securities and Exchange Commission, press releases and 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” of our most recent annual report on Form 10-K and quarterly report on Form 10-Q. Examples of these risks include: potential environmental cleanup costs related to the Portland Harbor Superfund site; the impact of general economic conditions; volatile supply and demand conditions affecting prices and volumes in the markets for both our products and raw materials we purchase; difficulties associated with acquisitions and integration of acquired businesses; the impact of goodwill impairment charges; the impact of long-lived asset impairment charges; the realization of expected cost reductions related to restructuring initiatives; the benefit of business realignment, cost containment and productivity improvement programs and strategic initiatives; the inability of customers to fulfill their contractual obligations; 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 the consolidation in the steel industry; the impact of imports of foreign steel into the U.S.; inability to realize expected benefits from investments in technology; freight rates and availability of transportation; impact of equipment upgrades and failures on production; product liability claims; the impact of impairment of our deferred tax assets; the impact of a cybersecurity incident; costs associated with compliance with environmental regulations; the adverse impact of climate change; inability to obtain or renew business licenses and permits; compliance with greenhouse gas emission 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: http://www.businesswire.com/news/home/20150630005444/en/


Contact:

Schnitzer Steel Industries, Inc.
Investor Relations:
Alexandra Deignan, 646-278-9711
adeignan@schn.com
or
Company Info:
www.schnitzersteel.com
ir@schn.com

Schnitzer Steel (NASDAQ:SCHN): FQ3 EPS of $0.00 beats by $0.14.

Revenue of $467.3M (-26.7% Y/Y) misses by $36.46M.

$SCHN recent news/filings

bullish

## source: finance.yahoo.com

Wed, 01 Jul 2015 19:39:33 GMT ~ Schnitzer Steel Industries, Inc. (SCHN) Jumps After Losses: What Do Hedge Funds Thing Of The Stock?


read full: http://www.insidermonkey.com/blog/schnitzer-steel-industries-inc-schn-jumps-after-losses-what-do-hedge-funds-thing-of-the-stock-358263/
*********************************************************

Wed, 01 Jul 2015 13:27:01 GMT ~ Are Investors Becoming Bullish on Schnitzer Steel Industries (SCHN) Stock Now? - Tale of the Tape


read full: http://finance.yahoo.com/news/investors-becoming-bullish-schnitzer-steel-132701511.html
*********************************************************

Wed, 01 Jul 2015 11:39:46 GMT ~ Schnitzer Steel upgraded by BofA/Merrill


read full: http://finance.yahoo.com/q/ud?s=SCHN
*********************************************************

Tue, 30 Jun 2015 17:21:40 GMT ~ Mid-Day Market Update: Juno Therapeutics Jumps Following Announcement of 10-Year Collaboration With Celgene


read full: http://finance.yahoo.com/news/mid-day-market-juno-therapeutics-172140297.html
*********************************************************

Tue, 30 Jun 2015 15:30:00 GMT ~ Schnitzer Steel Industries Inc Earnings Call scheduled for 11:30 am ET today


read full: http://biz.yahoo.com/cc/6/144826.html
*********************************************************

$SCHN charts

basic chart ## source: stockcharts.com



basic chart ## source: stockscores.com



big daily chart ## source: stockcharts.com



big weekly chart ## source: stockcharts.com



$SCHN company information

## source: otcmarkets.com

Link: http://www.otcmarkets.com/stock/SCHN/company-info
Ticker: $SCHN
OTC Market Place: Not Available
CIK code: 0000912603
Company name: Schnitzer Steel Industries, Inc.
Company website: http://www.schnitzersteel.com
Incorporated In: OR, USA



$SCHN share structure

## source: otcmarkets.com

Market Value: $524,835,483 a/o Jul 01, 2015
Shares Outstanding: 26,480,095 a/o Apr 02, 2015
Float: Not Available
Authorized Shares: Not Available
Par Value: 1

$SCHN extra dd links

Company name: Schnitzer Steel Industries, Inc.
Company website: http://www.schnitzersteel.com

## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=SCHN+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=SCHN+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=SCHN+Industry

## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/SCHN/news - http://finance.yahoo.com/q/h?s=SCHN+Headlines

## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/SCHN/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/SCHN/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=SCHN+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/SCHN
DTCC (dtcc.com): http://search2.dtcc.com/?q=Schnitzer+Steel+Industries%2C+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Schnitzer+Steel+Industries%2C+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Schnitzer+Steel+Industries%2C+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.schnitzersteel.com
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.schnitzersteel.com#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.schnitzersteel.com

## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/SCHN
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000912603&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/SCHN/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/SCHN/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=SCHN&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=SCHN
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/SCHN/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=SCHN+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=SCHN+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=SCHN
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=SCHN
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=SCHN+Cash+Flow&annual

## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/SCHN/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=SCHN+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/SCHN.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=SCHN
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/SCHN/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/SCHN/insider-transactions

## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/SCHN
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/SCHN
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/SCHN:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=SCHN
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=SCHN



$SCHN DD Notes ~ http://www.ddnotesmaker.com/SCHN

So I know someone personally works for this company in Canada. And they just got let go. Due to company financial losses in the last quarter. China not buying and scrap steel. WTF

So how bout now?? Do you think it's worth what it's trading for ????

I still do not understand why this stock trades at such a high price. Cyclicals may become more in favor
In 2014 if the economy continues to really improve but this company has a long way to go to be worth what
It is. traded at today. Also, much of their revenue comes from China which does not appear to be strong in steel demand for the near term
Crusader Rabbit

Schnitzer Reports First Quarter 2014 Financial Results
Sequential Improvements in Financial Performance
Continued Progress on Cost Reductions
Business Wire Schnitzer Steel Industries, Inc.
January 8, 2014 8:30 AM
PORTLAND, Ore.--(BUSINESS WIRE)--

Schnitzer Steel Industries, Inc. (SCHN) today reported an adjusted loss per share of $(0.18) and a loss per share of $(0.23) for its fiscal 2014 first quarter ended November 30, 2013. Adjusted results for the first quarter exclude a $2 million, or $0.05 per share, restructuring charge associated with cost reduction initiatives. In the first quarter of fiscal 2013, the Company reported an adjusted loss per share of $(0.02) and a loss per share of $(0.06).

All three business segments generated positive operating income during the first quarter of fiscal 2014. As anticipated, our Metals Recycling Business improved sequentially, delivering results slightly above break-even. Our Auto Parts Business also improved compared to the fourth quarter of fiscal 2013, recording operating margins of 9%, excluding the impact of new stores added since the first quarter of fiscal 2013. Our Steel Manufacturing Business was in line sequentially notwithstanding a bad debt expense of $1 million, or $0.03 per share. The first quarter results also include a charge for deferred tax valuation allowances of $1 million, or $0.04 per share.

Market conditions improved as the quarter progressed. Both prices and demand were relatively weak in the first half of the quarter which impacted shipments in September and October. In the second half of the quarter, demand strengthened which increased prices by approximately $30 per ton. Consequently, performance in the last month of the quarter was significantly better than during the first two months. The softer demand at the start of the quarter resulted in an estimated adverse impact from average inventory costs of approximately $6 per ton in our Metals Recycling Business. Based on current market conditions and our cost reduction initiatives, we anticipate improved results in each of our businesses in the second quarter.


Summary Results
($ in millions, except per share amounts)
Quarter
1Q14 4Q13 1Q13
Revenues $ 588 $ 657 $ 593

Operating Income (Loss) $ (4 ) $ (348 ) $ 1
Goodwill Impairment Charge — 321 —
Other Asset Impairment Charges — 13 —
Restructuring Charges 2 3 2
Adjusted Operating Income (Loss)(1) $ (2 ) $ (11 ) $ 3

Net Loss attributable to SSI $ (6 ) $ (289 ) $ (2 )

Adjusted Net Loss attributable to SSI(1) $ (5 ) $ (14 ) $ (1 )

Net Loss per share attributable to SSI $ (0.23 ) $ (10.82 ) $ (0.06 )

Adjusted diluted EPS attributable to SSI(1) $ (0.18 ) $ (0.51 ) $ (0.02 )

(1) 1Q14 and 1Q13 include adjustments for restructuring charges. 4Q13 includes adjustments for a non-cash goodwill impairment charge, other asset impairment charges, restructuring charges and tax valuation allowances net of tax. See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.

“Market conditions improved as the quarter progressed and, consequently, performance in the last month of the quarter was significantly better than during the first two months. All three business segments generated positive operating income, including higher sequential performance for both our Metals Recycling and Auto Parts Businesses, and a continuing trend of profitability in our Steel Manufacturing Business," said Tamara Lundgren, President and Chief Executive Officer. "We generated $26 million in operating cash flow in the first quarter, our cost reduction initiatives are underway to deliver at least $20 million of savings in fiscal 2014, and we continued to expand our Auto Parts Business platform by acquiring our fourth store in the greater Seattle-Tacoma metropolitan area which provides supply chain synergies with our Metals Recycling Business."

Key business drivers during the first quarter of fiscal 2014:

Metals Recycling Business (MRB) generated $1 million in operating income, including the estimated adverse impact from average inventory costing of approximately $6 per ton. The combination of improving market conditions, early benefits from our cost reduction program and non-recurrence of other cost items which impacted the previous quarter resulted in a sequential increase in MRB’s operating performance during the first quarter.
Auto Parts Business (APB) operating income of $6 million and margin of 9%, which excludes new sites added since the first quarter of fiscal 2013, represents sequential increases of $1 million and 200 basis points, respectively. Including the new stores, car purchase volumes increased by 15% from the prior year first quarter, primarily reflecting contributions from those stores.
Steel Manufacturing Business (SMB) operating income of $2 million reflected steady demand in the West Coast markets but was partially offset by a bad debt expense of $1 million from a customer bankruptcy.
Metals Recycling Business

Summary of Metals Recycling Business Results
($ in millions, except selling prices; Fe volumes 000s long tons; NFe volumes Ms lbs)

Quarter
1Q14 4Q13 Change 1Q13 Change
Total Revenues $ 490 $ 535 (8 )% $ 494 (1 )%

Ferrous Revenues $ 370 $ 398 (7 )% $ 370 — %
Ferrous Volumes 978 1,088 (10 )% 955 2 %
Avg. Net Ferrous Sales Prices ($/LT)(1) $ 348 $ 336 4 % $ 358 (3 )%

Nonferrous Revenues $ 113 $ 129 (12 )% $ 117 (3 )%
Nonferrous Volumes 124 141 (12 )% 119 4 %
Avg. Net Nonferrous Sales Prices ($/lb)(1) $ 0.89 $ 0.89 — % $ 0.95 (6 )%

Operating Income (Loss)(2) $ 1 $ (340 ) NM $ 6 (90 )%
Goodwill Impairment — 321 NM — NM
Asset Impairment Charges — 13 NM — NM

Adjusted Operating Income (Loss)(3) $ 1 $ (6 ) NM $ 6 (90 )%

(1) Sales prices are shown net of freight.
(2) Operating income (loss) does not include the impact of restructuring charges.
(3) See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
NM = Not meaningful

Sales Volumes: Ferrous sales volumes of 978 thousand tons in the first quarter increased 2% and nonferrous volumes of 124 million pounds increased 4% compared to the prior year first quarter.

Export customers accounted for 67% of total ferrous sales volumes in the first quarter. Our ferrous and nonferrous products were shipped to 14 countries, with China, South Korea and Turkey being the top ferrous export destinations.

Pricing: Export prices were soft in the first part of the first quarter, but increased by $30 per ton toward the end of the quarter. The combination of improving export prices and the strong domestic market led to higher average net ferrous selling prices as compared to the previous quarter while nonferrous prices were stable.

Margins: Operating income of $1 per ferrous ton, which included the estimated adverse impact of average inventory accounting of $6 per ton, was partially mitigated by improving market conditions and benefits of $3 million from implementation of cost reduction initiatives.

Auto Parts Business

Summary of Auto Parts Business Results
($ in millions)

Quarter
1Q14 4Q13 Change 1Q13 Change
Revenues $ 80 $ 79 1 % $ 70 14 %
Operating Income(1) $ 6 $ 3 76 % $ 6 (12 )%

Car Purchase Volumes (000s) 91 94 (3 )% 79 15 %
Locations (end of quarter) 62 61 2 % 51 22 %

(1) Operating income does not include the impact of restructuring charges.

Revenues: Revenues in the first quarter increased 14% from the prior year quarter due to incremental contributions from retail stores added since the first quarter of fiscal 2013.

Margins: Operating margins, excluding the impact of the stores added in fiscal 2013, increased sequentially to 9%. During the first quarter, APB incurred approximately $1 million of operating losses related to the new stores added since the first quarter of fiscal 2013, including integration and start-up costs, which lowered APB's reported operating margin to 7%. (See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.)

New Sites: In November, APB acquired its fourth self-service retail store in the Seattle-Tacoma metropolitan area which expanded APB's presence in the Pacific Northwest market. This location will supply our Metals Recycling shredder in Tacoma, Washington, further enhancing synergies between our operating segments.

Steel Manufacturing Business

Summary of Steel Manufacturing Business Results
($ in millions, except selling prices; volume 000s of short tons)

Quarter
1Q14 4Q13 Change 1Q13 Change
Revenues $ 88 $ 96 (8 )% $ 92 (4 )%
Operating Income $ 2 $ 2 (20 )% $ 3 (49 )%

Avg. Net Sales Prices ($/ST) $ 657 $ 667 (1 )% $ 680 (3 )%
Finished Goods Sales Volumes 128 138 (7 )% 130 (1 )%

Sales Volumes: Finished steel sales volumes of 128 thousand tons approximated the prior year first quarter, reflecting steady demand for construction products on the West Coast.

Pricing: Average net sales prices for finished steel products of $657 per short ton declined slightly from the prior year quarter due to the impact of lower raw material prices on selling prices to end customers.

Margins: Operating income of $2 million approximated the fourth quarter of fiscal 2013 due to additional production efficiencies of $1 million, partially offset by slightly lower sales volumes and a bad debt expense of $1 million from a customer bankruptcy.

Cost Reductions

Our cost reduction initiatives to further reduce our annual operating expenses by $30 million continue to progress. Approximately 70% of the reduction is expected to benefit fiscal 2014 results, with the full annual benefit expected to be achieved in fiscal 2015. The reduction in operating expenses will primarily occur in MRB and be achieved through a combination of headcount reductions, implementation of transportation efficiencies, reduced lease costs, and other productivity and non-trade procurement savings. We achieved $4 million of benefits in the first quarter. We anticipate achieving a quarterly run rate of $6 million of benefits by the end of the second quarter. During the first quarter, we incurred a $2 million restructuring expense, or $0.05 per share, in connection with this cost reduction program.

Corporate Items

The Company's full year tax rate for fiscal 2014 is anticipated to be approximately 37%. The tax rate in the first quarter was a benefit of 12.7%, which was lower than the federal statutory rate primarily due to the recognition of a deferred tax valuation allowance on the results of foreign operations.

The Company generated $26 million in operating cash flow during the first quarter. Net debt of $364 million at the end of the first quarter decreased slightly from the end of the fourth quarter in fiscal 2013. (See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.)

Analysts' Conference Call: First Quarter of Fiscal 2014

A conference call and slide presentation to discuss results will be held today, January 8, 2014, at 11:30 a.m. EDT hosted by Tamara Lundgren, President and Chief Executive Officer, and Richard Peach, Chief Financial Officer. The call and the slides will be webcast and accessible on the Company's website at www.schnitzersteel.com.

Summary financial data is provided in the following pages. The slides and related materials will be available prior to the call on the website.


SCHNITZER STEEL INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
(in thousands)
(Unaudited)

For the Three Months Ended
November 30, 2013 August 31, 2013 November 30, 2012

REVENUES:

Metal Recycling Business:
Ferrous sales $ 369,555 $ 397,947 $ 370,476
Nonferrous sales 113,154 129,199 116,601
Other sales 7,600 7,817 7,384
TOTAL MRB SALES 490,309 534,963 494,461

Auto Parts Business 79,635 79,231 69,555
Steel Manufacturing Business 88,123 96,235 92,029
Intercompany sales and eliminations (70,322 ) (53,844 ) (63,225 )
Total Revenues $ 587,745 $ 656,585 $ 592,820


OPERATING INCOME (LOSS):
Metal Recycling Business(1) $ 590 $ (6,097 ) $ 5,654
Auto Parts Business 5,609 3,191 6,364
Steel Manufacturing Business 1,744 2,169 3,404
Segment operating income (loss)(2) 7,943 (737 ) 15,422

Corporate expense (8,725 ) (10,188 ) (11,144 )
Intercompany eliminations (1,031 ) 299 (1,472 )
Adjusted operating income (loss) (1,813 ) (10,626 ) 2,806

Goodwill impairment charge — (321,000 ) —
Other asset impairment charges — (13,053 ) —
Restructuring charges (1,812 ) (2,900 ) (1,593 )
Total operating income (loss) $ (3,625 ) $ (347,579 ) $ 1,213

(1) MRB operating income for the three months ended August 31, 2013 is adjusted for goodwill impairment charge and other asset impairment charges. See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
(2) Segment operating income (loss) does not include the impact of restructuring charges.


SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)

For the Three Months Ended
November 30, 2013 August 31, 2013 November 30, 2012
Revenues $ 587,745 $ 656,586 $ 592,820
Cost of goods sold 542,417 620,457 541,884
Selling, general and administrative 47,550 47,388 47,995
(Income) loss from joint ventures (409 ) (633 ) 135
Goodwill impairment charge — 321,000 —
Other asset impairment charges — 13,053 —
Restructuring charges 1,812 2,900 1,593
Operating income (loss) (3,625 ) (347,579 ) 1,213
Interest expense (2,702 ) (2,584 ) (2,017 )
Other income (expense), net 176 (332 ) 321
Loss before income taxes (6,151 ) (350,495 ) (483 )
Income tax benefit (expense) 784 61,617 (960 )
Net loss (5,367 ) (288,878 ) (1,443 )
Net income attributable to noncontrolling interests (861 ) (356 ) (228 )
Net loss attributable to SSI $ (6,228 ) $ (289,234 ) $ (1,671 )

Net loss per share attributable to SSI - basic $ (0.23 ) $ (10.82 ) $ (0.06 )
Net loss per share attributable to SSI - diluted $ (0.23 ) $ (10.82 ) $ (0.06 )

Weighted average number of common shares:
Basic 26,755 26,733 26,567
Diluted 26,755 26,733 26,567
Dividends declared per common share $ 0.188 $ 0.188 $ 0.188


SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)

Fiscal
1Q14 1Q13 2Q13 3Q13 4Q13 2013
Metals Recycling Business
Ferrous Selling Prices ($/LT) (1)
Domestic $ 356 $ 354 $ 363 $ 367 $ 346 $ 358
Exports 344 360 374 367 332 359
Average $ 348 $ 358 $ 372 $ 367 $ 336 $ 358

Ferrous Sales Volume (LT)
Domestic 322,531 279,450 260,509 314,240 288,112 1,142,311
Export 655,072 675,212 842,509 849,991 799,644 3,167,356
Total 977,603 954,662 1,103,018 1,164,231 1,087,756 4,309,667

Nonferrous Average Price ($/LB) (1) $ 0.89 $ 0.95 $ 0.97 $ 0.94 $ 0.89 $ 0.93

Nonferrous Sales Volume (LB, in 000s) 123,941 118,931 125,500 135,256 140,755 520,442

Steel Manufacturing Business
Sales Prices ($/ST) (1) (2)
Average $ 657 $ 680 $ 690 $ 687 $ 667 $ 680

Sales Volume (ST) (2)
Rebar 83,618 78,159 58,132 71,561 83,911 291,763
Coiled Products 38,322 45,533 32,130 46,088 46,334 170,085
Merchant Bar and Other 6,222 5,926 5,355 7,358 7,298 25,937
Total 128,162 129,618 95,617 125,007 137,543 487,785

Auto Parts Business
Car purchase volumes (000) 91 79 88 95 94 356
Number of self-service locations at end of quarter 62 51 59 61 61 61

(1) Price information is shown after a reduction for the cost of freight incurred to deliver the product to the customer
(2) Excludes billet sales


SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

November 30, 2013 August 31, 2013
Assets
Current Assets:
Cash and cash equivalents $ 29,934 $ 13,481
Accounts receivable, net 125,975 188,270
Inventories, net 280,100 236,049
Other current assets 29,898 29,430
Total current assets 465,907 467,230

Property, plant and equipment, net 554,010 564,426

Goodwill and other assets 372,202 373,856

Total assets $ 1,392,119 $ 1,405,512

Liabilities and Equity
Current liabilities:
Short-term borrowings $ 613 $ 9,174
Other current liabilities 139,686 156,960
Total current liabilities 140,299 166,134

Long-term debt 393,426 372,663

Other long-term liabilities 86,123 85,516

Equity:
Total Schnitzer Steel Industries, Inc. ("SSI") shareholders' equity 767,264 776,558
Noncontrolling interests 5,007 4,641
Total equity 772,271 781,199
Total liabilities and equity $ 1,392,119 $ 1,405,512

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined under SEC rules such as adjusted operating income, adjusted net income attributable to SSI, adjusted diluted earnings per share attributable to SSI, operating income margin for APB stores owned more than a year and debt, net of cash. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable U.S. GAAP measures. Management believes that each of the foregoing adjusted non-GAAP financial measures provides a meaningful presentation of the Company's results from its core business operations excluding adjustments for restructuring charges that are not related to the Company's ongoing core business operations and improves the period-to-period comparability of the Company's results from its core business operations. In addition, management believes that the non-GAAP financial measure relating to the Auto Parts Business new stores impact provides a meaningful presentation of the operating segment's results by excluding operating results relating to newly added stores and thus improve period-to-period comparability of the results of the segment's core business. 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.


Operating Income (Loss)
($ in millions) Quarter
1Q14 4Q13 1Q13
Consolidated Operating Income (Loss):
Operating Income (Loss) $ (4 ) $ (348 ) $ 1
Goodwill Impairment Charge — 321 —
Other Asset Impairment Charges — 13 —
Restructuring Charges 2 3 2
Adjusted Operating Income (Loss)
$ (2 ) $ (11 ) $ 3

MRB Operating Income (Loss):
Operating Income (Loss) $ 1 $ (340 ) $ 6
Goodwill Impairment Charge — 321 —
Other Asset Impairment Charges — 13 —
Adjusted Operating Income (Loss) $ 1 $ (6 ) $ 6

Net Loss attributable to SSI
($ in millions) Quarter
1Q14 4Q13 1Q13
Net Loss attributable to SSI $ (6 ) $ (289 ) $ (2 )
Goodwill impairment charge, net of tax — 254 —
Other asset impairment charges, net of tax — 9 —
Restructuring Charges, net of tax 1 1 1
Valuation allowance on deferred tax assets — 11 —
Adjusted Net Loss attributable to SSI $ (5 ) $ (14 ) $ (1 )

Diluted Earnings per share attributable to SSI
($ per share) Quarter
1Q14 4Q13 1Q13
Net loss per share attributable to SSI $ (0.23 ) $ (10.82 ) $ (0.06 )
Goodwill impairment charge, net of tax, per share — 9.52 —
Other asset impairment charges, net of tax, per share — 0.33 —
Restructuring Charges, net of tax, per share 0.05 0.05 0.04
Valuation allowance on deferred tax assets, per share — 0.41 —
Adjusted Diluted EPS attributable to SSI $ (0.18 ) $ (0.51 ) $ (0.02 )

Debt, Net of Cash
November 30, 2013 August 31, 2013
Short-term borrowings $ 613 $ 9,174
Long-term debt, net of current maturities 393,426 372,663
Total debt 394,039 381,837
Less: cash and cash equivalents 29,934 13,481
Total debt, net of cash $ 364,105 $ 368,356

Auto Parts Business New Stores Impact
($ in millions) 1Q14
Existing Stores(1) New Stores(2) Reported
Revenues 71 9 80
Operating Income (Loss)(3) 6 (1 ) 6
Operating Income Margin 9 % NM 7 %
Car Purchase Volumes (000) 80 11 91

4Q13
Existing Stores(1) New Stores(2) Reported
Revenues 72 7 79
Operating Income (Loss) 5 (2 ) 3
Operating Income Margin 7 % NM 4 %
Car Purchase Volumes (000) 84 10 94

(1) Existing Stores represents APB operations for stores owned one year or more.
(2) New Stores represent new acquisitions, or greenfield development, owned less than one year.
(3) Does not foot due to rounding
NM = Not meaningful

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 60 operating facilities located in 14 states, Puerto Rico and Western Canada. The business 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 its auto parts and steel manufacturing businesses. The Company's auto parts business sells used auto parts through its 61 self-service facilities located in 16 states and Western Canada. With an effective annual production capacity of approximately 800,000 tons, the Company's steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 108th year of operations in 2014.

Safe Harbor for 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 to “we,” “our,” “us” and “SSI” refer to the Company and its consolidated subsidiaries.

Forward-looking statements in this press release include statements regarding our expectations, intentions, beliefs and strategies regarding the future, which may include statements regarding trends, cyclicality and changes in the markets we sell into; strategic direction; changes to manufacturing and production processes; the cost of compliance with environmental and other laws; expected tax rates, deductions and credits; 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; expected results, including pricing, sales volumes and profitability; obligations under our retirement plans; benefits, savings or additional costs from business realignment and cost containment programs; and the adequacy of accruals.

When used in this report, the words “believes,” “expects,” “anticipates,” “intends,” “assumes,” “estimates,” “evaluates,” “may,” “could,” “opinions,” “forecasts,” “future,” “forward,” “potential,” “probable,” and similar expressions are intended to identify forward-looking statements.

We may make other forward-looking statements from time to time, including in reports filed with the Securities and Exchange Commission, press releases and 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” of our most recent annual report on Form 10-K. Examples of these risks include: potential environmental cleanup costs related to the Portland Harbor Superfund site; the impact of general economic conditions; volatile supply and demand conditions affecting prices and volumes in the markets for both our products and raw materials we purchase; difficulties associated with acquisitions and integration of acquired businesses; the impact of goodwill impairment charges; the impact of long-lived asset impairment charges; the realization of expected cost reductions related to restructuring initiatives; the inability of customers to fulfill their contractual obligations; 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 the consolidation in the steel industry; the impact of imports of foreign steel into the U.S.; inability to realize expected benefits from investments in technology; freight rates and availability of transportation; impact of equipment upgrades and failures on production; product liability claims; the impact of impairment of our deferred tax assets; costs associated with compliance with environmental regulations; the adverse impact of climate change; inability to obtain or renew business licenses and permits; compliance with greenhouse gas emission regulations; reliance on employees subject to collective bargaining agreements; and the impact of the underfunded status of multiemployer plans in which we participate.


Contact:
Schnitzer Steel Industries, Inc.
Investor Relations:
Alexandra Deignan, 646-278-9711
adeignan@schn.com
or
Media Relations:
Tom Zelenka, 503-323-2821
tzelenka@schn.com
or
Company Info:
www.schnitzersteel.com
ir@schn.com

Schnitzer Announces First Quarter Fiscal 2014 Earnings Date and Conference Call January 8, 2014 – 11:30 a.m. Eastern
Business Wire Schnitzer Steel Industries, Inc.
December 19, 2013 1:09 PM
PORTLAND, Ore.--(BUSINESS WIRE)--

Schnitzer Steel Industries, Inc. (SCHN) will report its first quarter fiscal 2014 financial results on Wednesday, January 8, 2014 and will webcast a conference call to discuss the performance at 11:30 a.m. Eastern on the same day.

The webcast of the call and the accompanying slide presentation may be accessed on Schnitzer’s website under the Investor section Event Calendar at www.schnitzersteel.com/events. The call will be hosted by Tamara L. Lundgren, President and Chief Executive Officer, and Richard D. Peach, Senior Vice President and Chief Financial Officer.

Replay Information

Toll Free Dial: (855) 859-2056
Toll Free International Dial: (404) 537-3406
Conference ID: 27251997
Replay Available: 01/08/2014 – 01/15/2014

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 60 operating facilities located in 14 states, Puerto Rico and Western Canada. The business 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 its auto parts and steel manufacturing businesses. The Company’s auto parts business sells used auto parts through its 61 self-service facilities located in 16 states and Western Canada. With an effective annual production capacity of approximately 800,000 tons, the Company’s steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 107th year of operation in fiscal 2013.


Contact:
Schnitzer Steel Industries, Inc.
Investor Relations: Alexandra Deignan, 646-278-9711
Website: www.schnitzersteel.com
Email: ir@schn.com

Schnitzer Reports Fourth Quarter Fiscal 2013 Financial Results
Steel Manufacturing Business Reports Best Performance since Fiscal 2008
Additional Cost Savings and Productivity Improvements Planned for Metals Recycling Business in Fiscal 2014
Reported Results Include a Non-cash Goodwill Impairment and Other Charges in the Metals Recycling Business
Business Wire Schnitzer Steel Industries, Inc.
October 29, 2013 8:30 AM
PORTLAND, Ore.--(BUSINESS WIRE)--

Schnitzer Steel Industries, Inc. (SCHN) today reported an adjusted loss per share of $(0.51) for the fourth quarter ended August 31, 2013, excluding a non-cash goodwill impairment charge, other asset impairment charges, restructuring charges and tax valuation allowances. The Company reported a loss per share of $(10.82) for the fourth quarter ended August 31, 2013. This compares with an adjusted earnings per share of $0.11, excluding restructuring charges, and a reported loss per share of $(0.02) for the fourth quarter of fiscal 2012. Notwithstanding the significant impact to earnings as a result of the impairments and other charges, the Company generated positive operating cash flows of $38 million in the fourth quarter.

Challenging market conditions for recycled ferrous metals resulted in lower export selling prices and reduced sales volumes as compared to both the third quarter of fiscal 2013 and the fourth quarter of fiscal 2012. In addition, purchase prices for raw materials did not decrease as much as selling prices during the quarter due to constrained supply which contributed to operating margin compression in both our Metals Recycling and Auto Parts Businesses.

In the fourth quarter, our Metals Recycling Business took a non-cash goodwill impairment charge of $321 million and other asset impairment charges of $13 million. In the fourth quarter, MRB’s adjusted operating loss of $6 per ton excludes the non-cash goodwill impairment, other asset impairment charges and restructuring charges. MRB's adjusted operating income includes an estimated adverse impact of $12 per ton from a combination of average inventory costing and other items related to inventory valuations, costs associated with fire damage at two facilities and a bad debt expense from a customer bankruptcy.

Our Auto Parts Business generated operating margins of 7% in the fourth quarter, before the impact of new stores opened in fiscal 2013. APB's operating margin includes an adverse impact of approximately 400 basis points from average inventory costing. During the fourth quarter, APB incurred $2 million of operating losses related to the new sites added during fiscal 2013 which lowered APB's reported operating margin to 4%.

Our Steel Manufacturing Business reported its best fourth quarter and full year performance since fiscal 2008, generating $2 million of quarterly operating income driven largely by slowly improving demand leading to increased sales volumes and by productivity improvements.

During fiscal 2013, we implemented restructuring initiatives which reduced annual operating expenses by $25 million. These benefits were more than offset by the impact of adverse market conditions. In light of continued market challenges, we are implementing additional cost reduction and productivity improvement initiatives which are targeted to further reduce our annual operating expenses by $30 million with approximately 70% expected to benefit fiscal 2014 performance and the full benefits achieved in fiscal 2015. The additional savings, which are primarily in our Metals Recycling operations, are expected to result from a combination of reducing organizational layers, productivity improvements, procurement savings, internal synergies and other operating efficiencies. We anticipate incremental restructuring charges of $3 million to be incurred in fiscal 2014.

Consolidated Summary Results
($ in millions, except per share amounts)
Quarter Year
4Q13

3Q13

4Q12
2013

2012
Revenues $ 657 $ 710 $ 762 $ 2,622 $ 3,341

Operating Income (Loss) (348 ) 7 (1 ) (328 ) 54
Goodwill Impairment Charge 321 — — 321 —
Other Asset Impairment Charges 13 — — 13 —
Restructuring Charges 3 2 5 8 5
Adjusted Operating Income (Loss) (11 ) 9 4 14 59

Net Income (Loss) attributable to SSI (289 ) 1 — (281 ) 27

Adjusted Net Income (Loss) attributable to SSI(1) $ (14 ) $ 2 $ 3 $ (2 ) $ 31

Net Income (Loss) per share attributable to SSI $ (10.82 ) $ 0.03 $ (0.02 ) $ (10.56 ) $ 0.99

Adjusted diluted EPS attributable to SSI(1) $ (0.51 ) $ 0.09 $ 0.11 $ (0.07 ) $ 1.12

(1) Includes same adjustments, net of tax, as in adjusted operating income above as well as a valuation allowance on deferred tax assets of $29 million. See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
Tamara Lundgren, President and Chief Executive Officer, commented on the Company’s results, “While each of our businesses is well positioned to achieve higher profitability when market conditions improve, this quarter was negatively impacted by a number of significant items and an adverse impact from average inventory costs. Notwithstanding the significant impact to reported earnings, we generated $38 million of operating cash flow in the fourth quarter and continued to invest in our business and to return capital to our shareholders through our quarterly dividend.”

Lundgren continued: "In fiscal 2013, we delivered $25 million of savings from reducing SG&A and production efficiencies which lowered our cost of goods sold. However, these benefits were offset by the adverse impact of weak market conditions. In fiscal 2014, we expect to deliver organic growth in each of our businesses and, in addition, we are targeting $30 million of additional savings. With our major capital projects completed, we also anticipate significantly lower capital spending in fiscal 2014.”

Lundgren concluded: “With slowly improving demand for steel driving increased sales volumes and with the benefits of productivity improvements, SMB delivered its best performance since fiscal 2008. Our focus in fiscal 2014 will be to continue to deliver cost savings and productivity improvements throughout the Company and to further leverage the synergies between APB and MRB, all of which we expect will make our Company stronger in the long-run. We are very gratified that, in light of the market environment that the Company is facing, our teams continue to do an unwavering and excellent job in serving our customers and our communities. It is their commitment to excellence that was reflected in our selection as “Scrap Company of the Year” by American Metal Market.”

Metals Recycling Business

Summary of Metals Recycling Business Results
($ in millions, except selling prices; Fe volumes 000s long tons; NFe volumes M lbs)
Quarter Year
4Q13 3Q13 4Q12 2013 2012
Total Revenues $ 535 $ 605 $ 652 $ 2,210 $ 2,949

Ferrous Revenues $ 398 $ 465 $ 485 $ 1,677 $ 2,298
Ferrous Volumes 1,088 1,164 1,178 4,309 5,115
Avg. Net Ferrous Sales Prices ($/LT)(1) $ 336 $ 367 $ 378 $ 358 $ 415

Nonferrous Revenues $ 129 $ 131 $ 158 $ 502 $ 614
Nonferrous Volumes 141 135 169 520 629
Avg. Net Nonferrous Sales Prices ($/lb)(1) $ 0.89 $ 0.94 $ 0.90 $ 0.93 $ 0.94

Operating Income (Loss)(2) $ (340 ) $ 9 $ 13 $ (312 ) $ 64
Goodwill Impairment 321 — — 321 —
Asset Impairment Charges 13 — — 13 —

Adjusted Operating Income (Loss)(3)(4) $ (6 ) $ 9 $ 13 $ 23 $ 64

(1) Sales prices are shown net of freight.
(2) Operating income (loss) does not include the impact of restructuring charges.
(3) See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
(4) Numbers may not foot due to rounding
Sales Volumes: Ferrous sales volumes of 1.1 million tons in the fourth quarter decreased 7% from the third quarter, primarily due to softer export demand. Nonferrous sales volumes of 141 million pounds increased 4% sequentially, primarily due to benefits from higher production levels and increased shipments in August.

Export customers accounted for 74% of total ferrous sales volumes in the fourth quarter. Our ferrous and nonferrous products were shipped to 14 countries, with Turkey, China and South Korea the top export destinations for ferrous shipments.

Pricing: Demand softened in the export markets in early June, driving average ferrous net sales prices in the fourth quarter down by $31 per ton, or 8%, from third quarter levels. Domestic selling prices were also lower sequentially, however an upward movement mid-quarter resulted in a lower overall decline as compared to export prices. Nonferrous prices decreased 5% sequentially in the fourth quarter, primarily due to lower commodity prices.

Margins: Adjusted operating loss per ferrous ton of $6 in the fourth quarter of fiscal 2013 reflected weaker export market conditions, including an estimated adverse impact of $12 per ton from a combination of average inventory costs and other items related to inventory valuations, costs associated with fire damage at two facilities and a bad debt expense related to a customer bankruptcy.

Auto Parts Business

Summary of Auto Parts Business Results
($ in millions, except locations)

Quarter Year
4Q13 3Q13 4Q12 2013 2012
Revenues $ 79 $ 86 $ 72 $ 313 $ 317
Operating Income(1)(2) $ 3 $ 8 $ 2 $ 25 $ 33

Car Purchase Volumes (000s) 94 95 81 356 339
Locations (end of quarter) 61 61 51 61 51

(1) Operating income does not include the impact of restructuring charges.
(2) See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
Revenues: Revenues in the fourth quarter decreased 8% sequentially resulting from a decline in commodity prices and seasonally lower admissions and part sales.

Margins: Operating margins of 7%, before the impact of new stores added in fiscal 2013, were compressed by lower commodity prices, an estimated adverse impact of approximately 400 basis points from average inventory costing, and retail seasonality. During the fourth quarter, APB incurred $2 million of operating losses related to the new sites added during fiscal 2013, including integration and startup costs, which lowered APB's reported operating margin to 4%. (See Non-GAAP Financial Measures for reconciliation to U.S. GAAP)

Steel Manufacturing Business

Summary of Steel Manufacturing Business Results
($ in millions, except selling prices; volume in thousands of short tons)

Quarter Year
4Q13 3Q13 4Q12 2013 2012
Revenues $ 96 $ 93 $ 90 $ 352 $ 333
Operating Income (Loss) $ 2 $ — $ (3 ) $ 7 $ (2 )

Avg. Net Sales Prices ($/ST) $ 667 $ 687 $ 685 $ 680 $ 715
Finished Goods Sales Volumes 138 125 126 488 447
Sales Volumes: Finished steel sales volumes of 138 thousand tons increased 10% from the third quarter as well as the prior year quarter due to higher demand for long products on the West Coast.

Pricing: Average net sales prices for finished steel products decreased 3% primarily due to the impact of lower scrap prices on selling prices for finished goods.

Margins: Operating income of $2 million resulted from improved demand for finished steel products, benefits from higher sales volumes and operational efficiencies arising from productivity improvements.

Cost Reductions

During fiscal 2013, SG&A was lower by 9%, or $19 million, as compared to the prior year, excluding $5 million of operating expenses related to new APB sites in fiscal 2013 and $2 million of environmental credits which benefited fiscal 2012. Including production efficiencies which reduced costs of goods sold, our cost reduction initiatives lowered annual pre-tax operating costs by $25 million in fiscal 2013. Total restructuring charges in fiscal 2013 were $8 million pre-tax, or approximately $0.20 of diluted earnings per share. During the fourth quarter, we incurred $3 million of restructuring charges, or approximately $0.05 of diluted earnings per share. The restructuring charges consisted primarily of cash severance costs from headcount reductions, contract termination costs, and other related costs.

An additional cost reduction program beginning in fiscal 2014 is targeted to further reduce operating expenses by $30 million, primarily in our Metals Recycling Business. We expect these cost reductions to include approximately $27 million from reduced production expenses within costs of goods sold and $3 million from reduced SG&A.

Fiscal Year 2013 Results

For fiscal 2013, Schnitzer reported full year revenues of $2.6 billion and adjusted loss per share of $(0.07). Reported loss per share was $(10.56) for fiscal 2013. This compares with fiscal 2012 revenues of $3.3 billion and adjusted diluted earnings per share of $1.12 and reported diluted earnings per share of $0.99.

During fiscal 2013, the Company invested $50 million in acquisitions, including the purchase of noncontrolling interests, and $90 million in capital expenditures and returned $20 million to shareholders through dividend payments.

The Company's effective tax rate for fiscal year 2013 was a benefit of 17% which was lower than the federal statutory rate primarily due to the recognition of a valuation allowance on deferred tax assets and the impact of the non-deductible portion of the goodwill impairment charge.

Analysts' Conference Call: Fourth Quarter of Fiscal 2013

A conference call and slide presentation to discuss results will be held today, October 29, 2013, at 11:30 a.m. EDT hosted by Tamara Lundgren, President and Chief Executive Officer, and Richard Peach, Chief Financial Officer. The call and the slides will be webcast and accessible on the Company's website at www.schnitzersteel.com.

Summary financial data is provided in the following pages. The slides and related materials will be available prior to the call on the website.

SCHNITZER STEEL INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
(in thousands)
(Unaudited)

For the Three Months Ended For the Year Ended
August 31,
2013
May 31,
2013
August 31,
2012
August 31,
2013

August 31,
2012

REVENUES:

Metals Recycling Business:
Ferrous revenues $ 397,947 $ 465,194 $ 485,030 $ 1,677,035 $ 2,297,580
Nonferrous revenues 129,199 130,600 157,915 501,655 614,467
Other revenues 7,817 9,076 8,864 31,794 36,660
Total Metals Recycling Business revenues 534,963 604,870 651,809 2,210,484 2,948,707

Auto Parts Business 79,231 86,439 71,662 313,306 316,884
Steel Manufacturing Business 96,235 92,943 90,179 352,454 333,227
Intercompany sales eliminations (53,844 ) (73,957 ) (51,365 ) (254,333 ) (257,880 )
Total revenues $ 656,585 $ 710,295 $ 762,285 $ 2,621,911 $ 3,340,938


OPERATING INCOME (LOSS):

Adjusted Metals Recycling Business(1) $ (6,097 ) $ 8,789 $ 13,004 $ 22,504 $ 63,872
Auto Parts Business 3,191 8,273 1,611 24,539 33,304
Steel Manufacturing Business 2,169 (72 ) (2,683 ) 6,541 (2,081 )
Segment operating income (loss)(2) (737 ) 16,990 11,932 53,584 95,095

Corporate expense (10,188 ) (8,625 ) (8,875 ) (38,750 ) (37,512 )
Intercompany eliminations 299 695 588 (664 ) 1,097
Adjusted operating income (loss) (10,626 ) 9,060 3,645 14,170 58,680

Goodwill impairment charge (321,000 ) — — (321,000 ) —
Other asset impairment charges (13,053 ) — — (13,053 ) —
Restructuring charges (2,900 ) (1,873 ) (5,012 ) (7,906 ) (5,012 )
Total operating income (loss) $ (347,579 ) $ 7,187 $ (1,367 ) $ (327,789 ) $ 53,668

(1) Adjusted for goodwill impairment charge and other asset impairment charges. See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
(2) Segment operating income (loss) does not include the impact of restructuring charges.

SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)

For the Three Months Ended Fiscal Year Ended
August 31,
2013

May 31,
2013

August 31,
2012
August 31,
2013

August 31,
2012
Revenues $ 656,586 $ 710,295 $ 762,285 $ 2,621,911 $ 3,340,938
Cost of goods sold 620,457 652,263 712,434 2,415,391 3,079,716
Selling, general and administrative 47,388 49,390 46,668 193,533 205,178
Income from joint ventures (633 ) (418 ) (462 ) (1,183 ) (2,636 )
Goodwill impairment charge 321,000 — — 321,000 —
Other asset impairment charges 13,053 — — 13,053 —
Restructuring 2,900 1,873 5,012 7,906 5,012
Operating income (loss) (347,579 ) 7,187 (1,367 ) (327,789 ) 53,668
Interest expense (2,584 ) (2,788 ) (2,407 ) (9,743 ) (11,880 )
Other income (expense), net (332 ) 141 1,097 83 1,168
Income (loss) before income taxes (350,495 ) 4,540 (2,677 ) (337,449 ) 42,956
Income tax benefit (expense)
61,617 (2,986 ) 1,830 57,426 (14,039 )
Net income (loss) (288,878 ) 1,554 (847 ) (280,023 ) 28,917
Net income (loss) attributable to noncontrolling interests (356 ) (734 ) 362 (1,419 ) (1,513 )
Net income (loss) attributable to SSI $ (289,234 ) $ 820 $ (485 ) $ (281,442 ) $ 27,404

Income (loss) per share attributable to SSI - basic $ (10.82 ) $ 0.03 $ (0.02 ) $ (10.56 ) $ 1.00
Income (loss) per share attributable to SSI - diluted $ (10.82 ) $ 0.03 $ (0.02 ) $ (10.56 ) $ 0.99

Weighted average number of common shares:
Basic 26,733 26,671 26,777 26,656 27,317
Diluted 26,733 26,813 26,777 26,656 27,553
Dividends declared per common share $ 0.188 $ 0.188 $ 0.188 $ 0.750 $ 0.410

SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)

Fiscal Year Fiscal Year
1Q13 2Q13 3Q13 4Q13 2013 1Q12 2Q12 3Q12 4Q12 2012
Metals Recycling Business
Ferrous Selling Prices ($/LT) (1)
Domestic $ 354 $ 363 $ 367 $ 346 $ 358 $ 420 $ 424 $ 414 $ 357 $ 406
Exports 360 374 367 332 359 436 420 427 384 417
Average $ 358 $ 372 $ 367 $ 336 $ 358 $ 432 $ 421 $ 424 $ 378 $ 415

Ferrous Sales Volume (LT)
Domestic 279,450 260,509 314,240 288,112 1,142,311 319,450 297,142 308,521 261,748 1,186,861
Export 675,212 842,509 849,991 799,644 3,167,356 912,939 1,055,237 1,044,063 915,927 3,928,166
Total Processed 954,662 1,103,018 1,164,231 1,087,756 4,309,667 1,232,389 1,352,379 1,352,584 1,177,675 5,115,027

Nonferrous Average Price ($/LB) (1) $ 0.95 $ 0.97 $ 0.94 $ 0.89 $ 0.93 $ 1.00 $ 0.91 $ 0.97 $ 0.90 $ 0.94

Nonferrous Sales Volume (LB, in 000s) 118,931 125,500 135,256 140,755 520,442 137,243 168,545 154,071 168,794 628,652

Steel Manufacturing Business
Sales Prices ($/ST) (1) (2)
Average $ 680 $ 690 $ 687 $ 667 $ 680 $ 722 $ 725 $ 734 $ 685 $ 715

Sales Volume (ST) (2)
Rebar 78,159 58,132 71,561 83,911 291,763 62,487 51,141 55,378 74,797 243,803
Coiled Products 45,533 32,130 46,088 46,334 170,085 39,120 55,785 42,753 45,103 182,761
Merchant Bar and Other 5,926 5,355 7,358 7,298 25,937 5,030 5,097 4,812 5,837 20,776
Total 129,618 95,617 125,007 137,543 487,785 106,637 112,023 102,943 125,737 447,340

Auto Parts Business
Car purchase volumes (000) 79 88 95 94 356 85 84 89 81 339
Number of self-service locations at end of quarter 51 59 61 61 61 50 51 51 51 51

(1) Price information is shown after a reduction for the cost of freight incurred to deliver the product to the customer.
(2) Excludes billet sales.

SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
August 31, 2013 August 31, 2012
Assets
Current Assets:
Cash and cash equivalents $ 13,481 $ 89,863
Accounts receivable, net 188,270 137,313
Inventories, net 236,049 246,992
Other current assets 29,430 42,651
Total current assets 467,230 516,819

Property, plant and equipment, net 564,426 564,185

Goodwill and other assets 373,856 682,569

Total assets $ 1,405,512 $ 1,763,573

Liabilities and Equity
Current liabilities:
Short-term borrowings $ 9,174 $ 683
Other current liabilities 156,960 178,159
Total current liabilities 166,134 178,842

Long-term debt, net of current maturities 372,663 334,629

Other long-term liabilities 85,516 142,158

Redeemable noncontrolling interest — 22,248

Equity:
Total Schnitzer Steel Industries, Inc. ("SSI") shareholders' equity 776,558 1,080,583
Noncontrolling interests 4,641 5,113
Total equity 781,199 1,085,696
Total liabilities and equity $ 1,405,512 $ 1,763,573

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined under SEC rules such as adjusted operating income, adjusted net income attributable to SSI, adjusted diluted earnings per share attributable to SSI and the impact from new stores in our Auto Parts Business. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable U.S. GAAP measures. Management believes that each of the foregoing non-GAAP financial measures provides a meaningful presentation of the Company's results from its core underlying business operations excluding adjustments for goodwill and other impairment charges, restructuring charges, tax valuation allowances and startup costs that are not related to the Company's core underlying business operational performance and improves the period-to-period comparability of the Company's results from its core underlying business operations. 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.

Operating Income (Loss)
($ in millions) Quarter Year
4Q13 3Q13 4Q12 2013 2012
Consolidated Operating Income (Loss):
Operating Income (Loss) $ (348 ) $ 7 $ (1 ) $ (328 ) $ 54
Goodwill Impairment Charge 321 — — 321 —
Other Asset Impairment Charges 13 — — 13 —
Restructuring Charges 3 2 5 8 5
Adjusted Operating Income (Loss) $ (11 ) $ 9 $ 4 $ 14 $ 59

MRB Operating Income (Loss):
Operating Income (Loss) $ (340 ) $ 9 $ 13 $ (312 ) $ 64
Goodwill Impairment Charge 321 — — 321 —
Other Asset Impairment Charges 13 — — 13 —
Adjusted Operating Income (Loss)(1) $ (6 ) $ 9 $ 13 $ 23 $ 64

(1) Numbers may not foot due to rounding

Net Income (Loss) attributable to SSI
($ in millions) Quarter Year
4Q13 3Q13 4Q12 2013 2012
Net Income (Loss) attributable to SSI $ (289 ) $ 1 $ — $ (281 ) $ 27
Goodwill impairment charge, net of tax 254 — — 254 —
Other asset impairment charges, net of tax 9 — — 9 —
Restructuring charges, net of tax 1 1 3 5 3
Valuation allowance on deferred tax assets 11 — — 11 —
Adjusted Net Income (Loss) attributable to SSI(1) $ (14 ) $ 2 $ 3 $ (2 ) $ 31

(1) Numbers may not foot due to rounding

Diluted Earnings per share attributable to SSI
($ per share) Quarter Year
4Q13 3Q13 4Q12 2013 2012
Net Income (Loss) per share attributable to SSI $ (10.82 ) $ 0.03 $ (0.02 ) $ (10.56 ) $ 0.99
Goodwill impairment charge, net of tax, per share 9.52 — — 9.55 —
Other asset impairment charges, net of tax, per share 0.33 — — 0.33 —
Restructuring charges, net of tax, per share 0.05 0.06 0.12 0.20 0.12
Valuation allowance on deferred tax assets, per share 0.41 — 0.01 0.41 0.01
Adjusted Diluted EPS attributable to SSI $ (0.51 ) $ 0.09 $ 0.11 $ (0.07 ) $ 1.12

Auto Parts Business New Stores Impact
($ in millions) 4Q13
Existing Stores(1) New Stores(2) Reported
Revenues $ 72 $ 7 $ 79
Operating Income (Loss)
$ 5 $ (2 ) $ 3
Operating Income Margin 7 % NM 4 %
Car Purchase Volumes (000) 84 10 94

3Q13
Existing Stores(1) New Stores(2) Reported
Revenues(3) $ 80 $ 7 $ 86
Operating Income (Loss)(3) $ 10 $ (1 ) $ 8
Operating Income Margin 12 % NM 10 %
Car Purchase Volumes (000) 87 8 95

FY13
Existing Stores(1) New Stores(2) Reported
Revenues
$ 296 $ 17 $ 313
Operating Income (Loss)(3)
$ 29 $ (5 ) $ 25
Operating Income Margin 10 % NM 8 %
Car Purchase Volumes (000) 335 21 356

(1) Existing Stores represents APB operations for stores owned one year or more.
(2) New Stores represent new acquisitions, or greenfield development, owned less than one year.
(3) Does not foot due to rounding.
NM = Not meaningful

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 60 operating facilities located in 14 states, Puerto Rico and Western Canada. The business 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 its auto parts and steel manufacturing businesses. The Company's auto parts business sells used auto parts through its 61 self-service facilities located in 16 states and Western Canada. With an effective annual production capacity of approximately 800,000 tons, the Company's steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 106th year of operations in 2013.

Safe Harbor for 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 to “we,” “our,” “us” and “SSI” refer to the Company and its consolidated subsidiaries.

Forward-looking statements in this press release include statements regarding our expectations, intentions, beliefs and strategies regarding the future, which may include statements regarding trends, cyclicality and changes in the markets we sell into; strategic direction; changes to manufacturing and production processes; the cost of compliance with environmental and other laws; expected tax rates, deductions and credits; 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; expected results, including pricing, sales volumes and profitability; obligations under our retirement plans; benefits, savings or additional costs from business realignment and cost containment programs; and the adequacy of accruals.

When used in this report, the words “believes,” “expects,” “anticipates,” “intends,” “assumes,” “estimates,” “evaluates,” “may,” “could,” “opinions,” “forecasts,” “future,” “forward,” “potential,” “probable,” and similar expressions are intended to identify forward-looking statements.

We may make other forward-looking statements from time to time, including in reports filed with the Securities and Exchange Commission, press releases and 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 of Part I of our most recent quarterly report on Form 10-Q and annual report on Form 10-K. Examples of these risks include: potential environmental cleanup costs related to the Portland Harbor Superfund site; the impact of general economic conditions; volatile supply and demand conditions affecting prices and volumes in the markets for both our products and raw materials we purchase; difficulties associated with acquisitions and integration of acquired businesses; the impact of goodwill impairment charges; the impact of long-lived asset impairment charges; the realization of expected cost reductions related to restructuring initiatives; the inability of customers to fulfill their contractual obligations; 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 the consolidation in the steel industry; the impact of imports of foreign steel into the U.S.; inability to realize expected benefits from investments in technology; freight rates and availability of transportation; impact of equipment upgrades and failures on production; product liability claims; the impact of impairment of our deferred tax assets; costs associated with compliance with environmental regulations; the adverse impact of climate change; inability to obtain or renew business licenses and permits; compliance with greenhouse gas emission regulations; reliance on employees subject to collective bargaining agreements; and the impact of the underfunded status of multiemployer plans in which we participate.


Contact:
Schnitzer Steel Industries, Inc.
Investor Relations:
Alexandra Deignan, 646-278-9711
adeignan@schn.com
or
Media Relations:
Tom Zelenka, 503-323-2821
tzelenka@schn.com
or
Company Info:
www.schnitzersteel.com
ir@schn.com

I am very surprised the price of this stock has held up after several quarters of poor performance.
The Chinese are now generating more scrap with their auto business at 10+ million units for several
Years. I feel the price should be around $15.00/ share. Short.
Crusader Rabbit

Schnitzer Reports Third Quarter 2013 Financial Results


Higher Volumes in all Businesses and Continued Expansion of Auto Parts Business
Business WirePress Release: Schnitzer Steel Industries, Inc. Schnitzer Steel Industries, Inc. (SCHN) today reported adjusted earnings per share of $0.09 and earnings per share of $0.03 for its fiscal 2013 third quarter ended May 31, 2013. This compares to adjusted earnings per share of $0.36 and earnings per share of $0.32 in the second quarter of 2013. Adjusted results for the third quarter exclude a $2 million, or $0.06 per share, restructuring charge associated with cost reduction initiatives announced in August 2012. Third quarter results were adversely impacted by average inventory accounting which significantly reduced operating income in our Metals Recycling Business by approximately $10 million, or $9 per ton, as compared to the second quarter. The Company's results in the second quarter included $0.10 per share of discrete tax benefits. The Company generated $45 million in operating cash flow during the third quarter and our total debt to total capital ratio at the end of the third quarter approximated the second quarter.

Ferrous export selling prices declined steadily throughout the third quarter, with market prices at the end of May approximately $50 per ton lower than at the end of the second quarter of fiscal 2013 driven primarily by lower export demand. The combination of declining selling prices, constrained supply, adverse impacts of average inventory accounting and lower tax benefits resulted in sequentially lower consolidated net income.

Subsequent to the third quarter, we acquired our first Auto Parts store in Rhode Island which is located near our existing Metals Recycling facilities. This new store adds to our supply chain in the Northeast, increasing our combined regional presence to 16 facilities.

Summary Results
($ in millions, except per share amounts)

Quarter
3Q13 2Q13 Change 3Q12 Change
Revenues $ 710 $ 662 7 % $ 880 (19 )%

Operating Income $ 7 $ 11 (37 )% $ 22 (67 )%
Restructuring Charges 2 2 22 % — NM
Adjusted Operating Income(1) $ 9 $ 13 (30 )% $ 22 (59 )%

Net Income attributable to SSI $ 1 $ 9 (91 )% $ 11 (93 )%
Restructuring Charges, net of tax 1 1 49 % — NM
Adjusted Net Income attributable to SSI(1) $ 2 $ 10 (76 )% $ 11 (79 )%

Net Income per share attributable to SSI $ 0.03 $ 0.32 (91 )% $ 0.40 (92 )%
Restructuring Charges, net of tax, per share 0.06 0.04 50 % — NM
Adjusted diluted EPS attributable to SSI(1)(2) $ 0.09 $ 0.36 (75 )% $ 0.40 (78 )%

(1) Adjusted for restructuring charges. See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
(2) Second quarter of fiscal 2013 included tax benefits of $3 million, or $0.10 per share, relating to the release of a valuation allowance which had been recorded in the first quarter of fiscal 2013 and other discrete tax benefits.
NM = Not meaningful

“During the third quarter we achieved higher sales volumes in each of our businesses despite weaker market conditions. Operating income in our Metals Recycling Business was negatively impacted by the significant drop in ferrous selling prices which fell more quickly than purchase prices and offset some of the benefits from the increased volumes. Our major capital projects for fiscal 2013 in Canada and Puerto Rico continue to progress on schedule. In our Auto Parts Business, seasonal trends contributed to improved sequential results for stores owned more than one year and the integration of our 11 new sites added this fiscal year are on track. In our Steel Manufacturing Business, higher sales volumes reflected, in part, a market environment that is improving," said Tamara Lundgren, President and Chief Executive Officer. "We generated positive operating cash flow this quarter which enabled us to continue our growth investments and capital allocation priorities while maintaining a healthy balance sheet."

Key business drivers during the third quarter of fiscal 2013:
• Metals Recycling Business (MRB) generated operating income per ferrous ton of approximately $8, which included an adverse impact from average inventory costs of $9 per ton, as compared to the second quarter. Ferrous volumes increased 6% and nonferrous volumes increased 8% sequentially from the second quarter.
• Auto Parts Business (APB) operating income margin of 12%, excluding new sites added in fiscal 2013, reflected seasonally higher parts sales. APB increased its car purchase volumes 3% sequentially, excluding the contribution from new stores in fiscal 2013.
• Steel Manufacturing Business (SMB) selling volumes increased 31% from the second quarter, primarily due to normal seasonal improvements in demand in the third quarter. Operating results were break-even in the third quarter.

Metals Recycling Business

Summary of Metals Recycling Business Results
($ in millions, except selling prices; Fe volumes 000s long tons; NFe volumes M lbs)

Quarter
3Q13 2Q13 Change 3Q12 Change
Total Revenues $ 605 $ 576 5 % $ 787 (23 )%

Ferrous Revenues $ 465 $ 443 5 % $ 622 (25 )%
Ferrous Volumes 1,164 1,103 6 % 1,353 (14 )%
Avg. Net Ferrous Sales Prices ($/LT)(1) $ 367 $ 372 (1 )% $ 424 (13 )%

Nonferrous Revenues $ 131 $ 125 4 % $ 155 (16 )%
Nonferrous Volumes 135 126 8 % 154 (12 )%
Avg. Net Nonferrous Sales Prices ($/lb)(1) $ 0.94 $ 0.97 (3 )% $ 0.97 (3 )%

Operating Income(2) $ 9 $ 14 (38 )% $ 18 (51 )%

(1) Sales prices are shown net of freight
(2) Operating income does not include the impact of restructuring charges

Sales Volumes: Ferrous sales volumes of 1.2 million tons in the third quarter increased 6% sequentially due to stronger domestic volumes and the timing of shipments. Nonferrous sales volumes of 135 million pounds increased 8%, primarily due to higher production levels and inventory draw down to satisfy customer demand.

Export customers accounted for 73% of total ferrous sales volumes in the third quarter. Our ferrous and nonferrous products were shipped to 13 countries, with China, Turkey and Malaysia being the top ferrous export destinations.

Pricing: Export prices declined steadily throughout the quarter as demand moderated. Higher priced sales orders before the market dropped resulted in average net ferrous selling prices which approximated second quarter levels. Nonferrous prices averaged slightly lower than the prior quarter.

Margins: Operating income per ferrous ton was $8, which included a significant adverse impact from average inventory costs of $9 per ton as compared to the second quarter. In the declining selling price environment, average inventory costs did not decline as quickly as cash purchase costs for raw materials, resulting in margin compression. Absent the impact from average inventory accounting, operating income per ferrous ton was in line with the second quarter.

Auto Parts Business

Summary of Auto Parts Business Results
($ in millions)

Quarter
3Q13 2Q13 Change 3Q12 Change
Revenues $ 86 $ 78 11% $ 83 4%
Operating Income(1) $ 8 $ 7 23% $ 13 (34)%

Car Purchase Volumes (000s) 95 88 8% 89 7%
Locations (end of quarter) 61 59 3% 51 20%

(1) Operating income does not include the impact of restructuring charges

Revenues: Revenues in the third quarter increased 11% sequentially due to seasonally stronger admissions and part sales and the incremental contributions from acquisitions.

Margins: During the third quarter, operating margins, excluding the impact of new sites, increased sequentially to 12%, due in part to the impact of normal seasonal improvements in part sales. During the third quarter, APB incurred $1 million of operating losses related to the new sites added during fiscal 2013, including integration and startup costs, which lowered APB's reported operating margin to 10%. (See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.)

New Sites: Subsequent to the third quarter, APB acquired its first store in Rhode Island. This location is near our Metals Recycling facilities and will expand APB's presence in our core Northeastern market and further enhance operational synergies with our Metals Recycling Business.

Steel Manufacturing Business

Summary of Steel Manufacturing Business Results
($ in millions, except selling prices; volume 000s of short tons)

Quarter
3Q13 2Q13 Change 3Q12 Change
Revenues $ 93 $ 71 30% $ 79 18%
Operating Income (Loss) $ — $ 1 NM $ — NM

Avg. Net Sales Prices ($/ST) $ 687 $ 690 —% $ 734 (6)%
Finished Goods Sales Volumes 125 96 31% 103 21%

NM = Not meaningful

Sales Volumes: Finished steel sales volumes of 125 thousand tons increased 31% from the second quarter of fiscal 2013 due to seasonal improvements in demand.

Pricing: Average net sales prices for finished steel products of $687 per short ton approximated the second quarter.

Margins: Operating results during the quarter approximated break-even levels. The decline in margins compared to the second quarter was due primarily to the impact on costs of goods sold from lower utilization levels as customer demand was partially met with inventories produced during the second quarter.

Cost Reductions

During the first nine months of fiscal 2013, SG&A was lower by 10%, or $16 million, as compared to the prior year, excluding the $3 million impact from new APB acquisitions. Our cost reduction initiatives announced in August 2012 are on track to lower annual pre-tax operating costs by $25 million and are anticipated to be substantially implemented by the end of fiscal 2013. During the third quarter, we incurred a $2 million expense related to the restructuring charge, which equates to $0.06 per share. In aggregate, we have incurred $10 million of the total $14 million anticipated pre-tax restructuring charge in fiscal 2013. During the fourth quarter of fiscal 2013, the balance of the restructuring charges will primarily reflect costs of consolidating administrative functions in a single headquarters location.

Corporate Items

The Company's full year tax rate for fiscal 2013 is anticipated to be approximately 35%. The tax rate in the third quarter was higher than the anticipated full year rate due to changes to projected pre-tax income from domestic and foreign operations.

The Company generated $45 million in operating cash flow during the third quarter from a combination of positive earnings and lower working capital. In the second quarter, the Company generated operating cash flow of $16 million. Total debt of $414 million at the end of the third quarter approximated the level at the end of the second quarter.

Analysts' Conference Call: Second Quarter of Fiscal 2013

A conference call and slide presentation to discuss results will be held today, June 27, 2013, at 10:00 a.m. EDT hosted by Tamara Lundgren, President and Chief Executive Officer, and Richard Peach, Chief Financial Officer. The call and the slides will be webcast and accessible on the Company's website at www.schnitzersteel.com.

Summary financial data is provided in the following pages. The slides and related materials will be available prior to the call on the website.

SCHNITZER STEEL INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
(in thousands)
(Unaudited)

For the Three Months Ended For the Nine Months Ended
May 31, 2013
February 28, 2013
May 31, 2012 May 31, 2013 May 31, 2012

REVENUES:

Metal Recycling Business:
Ferrous sales $ 465,194 $ 443,418 $ 621,923 $ 1,279,088 $ 1,812,550
Nonferrous sales 130,600 125,255 155,265 372,456 456,552
Other sales 9,076 7,518 9,339 23,977 27,796
TOTAL MRB SALES 604,870 576,191 786,527 1,675,521 2,296,898

Auto Parts Business 86,439 78,082 82,936 234,075 245,222
Steel Manufacturing Business 92,943 71,247 78,623 256,219 243,048
Intercompany sales and eliminations (73,957 ) (63,310 ) (68,221 ) (200,490 ) (206,515 )
Total Revenues $ 710,295 $ 662,210 $ 879,865 $ 1,965,325 $ 2,578,653


OPERATING INCOME (LOSS):
Metal Recycling Business $ 8,789 $ 14,158 $ 17,817 $ 28,602 $ 50,868
Auto Parts Business 8,273 6,711 12,543 21,348 31,693
Steel Manufacturing Business (72 ) 1,041 253 4,373 602
Segment operating income(1) 16,990 21,910 30,613 54,323 83,163

Corporate expense (8,625 ) (8,942 ) (8,751 ) (28,563 ) (28,635 )
Intercompany eliminations 695 (38 ) 216 (963 ) 506


Adjusted operating income(2)
9,060 12,930 22,078 24,797 55,034

Restructuring charges (1,873 ) (1,540 ) — (5,006 ) —
Total operating income $ 7,187 $ 11,390 $ 22,078 $ 19,791 $ 55,034

(1) Segment operating income does not include the impact of restructuring charges.

(2) Adjusted for restructuring charges. See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.



SCHNITZER STEEL INDUSTRIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in thousands)
(Unaudited)

For the Three Months Ended For the Nine Months Ended
May 31, 2013 February 28, 2013 May 31, 2012 May 31, 2013 May 31, 2012
Revenues $ 710,295 $ 662,210 $ 879,865 $ 1,965,325 $ 2,578,653
Cost of goods sold 652,263 600,786 807,980 1,794,933 2,367,283
Selling, general and administrative 49,390 48,760 50,148 146,144 158,510
Income from joint ventures (418 ) (266 ) (341 ) (549 ) (2,174 )
Restructuring charges 1,873 1,540 — 5,006 —
Operating income 7,187 11,390 22,078 19,791 55,034
Interest expense (2,788 ) (2,354 ) (2,729 ) (7,159 ) (9,473 )
Other income (expense), net 141 (49 ) (154 ) 414 70
Income before income taxes 4,540 8,987 19,195 13,046 45,631
Income tax expense (2,986 ) (244 ) (7,541 ) (4,191 ) (15,870 )
Net income 1,554 8,743 11,654 8,855 29,761
Net income attributable to noncontrolling interests (734 ) (100 ) (413 ) (1,063 ) (1,875 )
Net income attributable to SSI $ 820 $ 8,643 $ 11,241 $ 7,792 $ 27,886

Income per share attributable to SSI - basic $ 0.03 $ 0.32 $ 0.41 $ 0.29 $ 1.01
Income per share attributable to SSI - diluted $ 0.03 $ 0.32 $ 0.40 $ 0.29 $ 1.00

Weighted average number of common shares:
Basic 26,671 26,640 27,531 26,629 27,499
Diluted 26,813 26,781 27,795 26,777 27,748
Dividends declared per common share $ 0.188 $ 0.188 $ 0.188 $ 0.563 $ 0.222


SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)
Fiscal Fiscal
1Q13 2Q13 3Q13 YTD 1Q12 2Q12 3Q12 4Q12 2012
Metals Recycling Business
Ferrous Selling Prices ($/LT) (1)
Domestic $ 354 $ 363 $ 367 $ 362 $ 420 $ 424 $ 414 $ 357 $ 406
Exports 360 374 367 368 436 420 427 384 417
Average $ 358 $ 372 $ 367 $ 366 $ 432 $ 421 $ 424 $ 378 $ 415

Ferrous Sales Volume (LT)
Domestic 279,450 260,509 314,240 854,199 319,451 297,142 308,521 261,747 1,186,861
Export 675,212 842,509 849,991 2,367,713 912,939 1,055,237 1,044,063 915,927 3,928,166
Total 954,662 1,103,018 1,164,231 3,221,912 1,232,390 1,352,379 1,352,584 1,177,674 5,115,027

Nonferrous Average Price ($/LB) (1) $ 0.95 $ 0.97 $ 0.94 $ 0.95 $ 1.00 $ 0.91 $ 0.97 $ 0.90 $ 0.94

Nonferrous Sales Volume (LB, in 000s) 118,931 125,500 135,256 379,688 137,243 168,545 154,071 168,794 628,652

Steel Manufacturing Business
Sales Prices ($/ST) (1) (2)
Average $ 680 $ 690 $ 687 $ 685 $ 722 $ 725 $ 734 $ 685 $ 715

Sales Volume (ST) (2)
Rebar 78,159 58,132 71,561 207,852 62,487 51,141 55,378 74,797 243,803
Coiled Products 45,533 32,130 46,088 123,751 39,120 55,785 42,753 45,103 182,761
Merchant Bar and Other 5,926 5,355 7,358 18,639 5,030 5,097 4,812 5,837 20,776
Total 129,618 95,617 125,007 350,242 106,637 112,023 102,943 125,737 447,340

Auto Parts Business
Car purchase volumes (000) 79 88 95 262 85 84 89 81 339
Number of self-service locations at end of quarter 51 59 61 61 50 51 51 51 51

(1) Price information is shown after a reduction for the cost of freight incurred to deliver the product to the customer
(2) Excludes billet sales


SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

May 31, 2013 August 31, 2012

Assets

Current Assets:
Cash and cash equivalents $ 37,078 $ 89,863
Accounts receivable, net 161,808 137,313
Inventories, net 295,678 246,992
Other current assets 40,949 42,651
Total current assets 535,513 516,819

Property, plant and equipment, net 569,219 564,185

Goodwill and other assets 693,041 682,569

Total assets $ 1,797,773 $ 1,763,573


Liabilities and Equity

Current liabilities:
Short-term borrowings $ 693 $ 683
Other current liabilities 161,425 178,159
Total current liabilities 162,118 178,842

Long-term debt 413,401 334,629

Other long-term liabilities 146,644 142,158

Redeemable noncontrolling interest — 22,248

Equity:
Total Schnitzer Steel Industries, Inc. ("SSI") shareholders' equity 1,070,274 1,080,583
Noncontrolling interests 5,336 5,113
Total equity 1,075,610 1,085,696
Total liabilities and equity $ 1,797,773 $ 1,763,573

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined under SEC rules such as adjusted operating income, adjusted net income attributable to SSI, adjusted diluted earnings per share attributable to SSI and operating income margin for APB stores owned more than a year. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable U.S. GAAP measures. Management believes that each of the foregoing adjusted non-GAAP financial measures provides a meaningful presentation of the Company's results from its core business operations excluding adjustments for restructuring charges that are not related to the Company's ongoing core business operations and improves the period-to-period comparability of the Company's results from its core business operations. In addition, management believes that the non-GAAP financial measure relating to the Auto Parts Business new stores impact provides a meaningful presentation of the operating segment's results by excluding operating results relating to newly added stores and thus improve period-to-period comparability of the results of the segment's core business. 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.

Consolidated Operating Income
($ in millions) Quarter
3Q13 2Q13 3Q12
Operating Income $ 7 $ 11 $ 22
Restructuring Charges 2 2 —
Adjusted Operating Income $ 9 $ 13 $ 22

Net Income attributable to SSI
($ in millions) Quarter
3Q13 2Q13 3Q12
Net Income attributable to SSI $ 1 $ 9 $ 11
Restructuring Charges, net of tax 1 1 —
Adjusted Net Income attributable to SSI $ 2 $ 10 $ 11

Diluted Earnings per share attributable to SSI
($ per share) Quarter
3Q13 2Q13 3Q12
Net Income per share attributable to SSI $ 0.03 $ 0.32 $ 0.40
Restructuring Charges, net of tax, per share 0.06 0.04 —
Adjusted Diluted EPS attributable to SSI $ 0.09 $ 0.36 $ 0.40

Auto Parts Business New Stores Impact
($ in millions) 3Q13
Existing Stores(1) New Stores(2) Reported
Revenues(3) 80 7 86
Operating Income (Loss)(3) 10 (1 ) 8
Operating Income Margin 12 % NM 10 %
Car Purchase Volumes (000) 87 8 95

2Q13
Existing Stores(1) New Stores(2) Reported
Revenues 75 3 78
Operating Income (Loss)(3) 8 (2 ) 7
Operating Income Margin 11 % NM 9 %
Car Purchase Volumes (000) 84 4 88

(1) Existing Stores represents APB operations for stores owned one year or more.
(2) New Stores represent new acquisitions, or greenfield development, owned less than one year.
(3) Does not foot due to rounding.
NM = Not meaningful

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 59 operating facilities located in 14 states, Puerto Rico and Western Canada. The business 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 its auto parts and steel manufacturing businesses. The Company's auto parts business sells used auto parts through its 62 self-service facilities located in 17 states and Western Canada. With an effective annual production capacity of approximately 800,000 tons, the Company's steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 107th year of operations in 2013.

Safe Harbor for 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 to “we,” “our,” “us” and “SSI” refer to the Company and its consolidated subsidiaries.

Forward-looking statements in this press release include statements regarding our expectations, intentions, beliefs and strategies regarding the future, which may include statements regarding trends, cyclicality and changes in the markets we sell into; strategic direction; changes to manufacturing and production processes; the cost of compliance with environmental and other laws; expected tax rates, deductions and credits; 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; expected results, including pricing, sales volumes and profitability; obligations under our retirement plans; savings or additional costs from business realignment and cost containment programs; and the adequacy of accruals.

When used in this report, the words “believes,” “expects,” “anticipates,” “intends,” “assumes,” “estimates,” “evaluates,” “may,” “could,” “opinions,” “forecasts,” “future,” “forward,” “potential,” “probable,” and similar expressions are intended to identify forward-looking statements.

We may make other forward-looking statements from time to time, including in reports filed with the Securities and Exchange Commission, press releases and 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 “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. Examples of these risks include: potential environmental cleanup costs related to the Portland Harbor Superfund site; the impact of general economic conditions; volatile supply and demand conditions affecting prices and volumes in the markets for both our products and raw materials we purchase; difficulties associated with acquisitions and integration of acquired businesses; the impact of goodwill impairment charges; the realization of expected cost reductions related to restructuring initiatives; the inability of customers to fulfill their contractual obligations; 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 the consolidation in the steel industry; the impact of imports of foreign steel into the U.S.; inability to realize expected benefits from investments in technology; freight rates and availability of transportation; product liability claims; costs associated with compliance with environmental regulations; the adverse impact of climate change; inability to obtain or renew business licenses and permits; compliance with greenhouse gas emission regulations; reliance on employees subject to collective bargaining agreements; and the impact of the underfunded status of multiemployer plans in which we participate.


.
.
Contact:.
.
Schnitzer Steel Industries, Inc.
Investor Relations:
Alexandra Deignan, 646-278-9711
adeignan@schn.com
or
Media Relations:
Chip Terhune, 503-265-6370
cterhune@schn.com
or
Company Info:
www.schnitzersteel.com
ir@schn.com

SCHN new trade http://breakout-stocks.blogspot.com/2012/10/schn-abx-new-trades-oct102012.html

SCHN Schnitzer Steel Industries (27.03) Founded in 1906 as a one-man scrap metal operation, Schnitzer Steel Industries, Inc., has become one of the nation's largest recyclers of scrap metal, a leading provider of used and recycled auto parts and a manufacturer of finished steel products.

With an extensive national and global reach, the company achieved $2.3 billion in revenues in fiscal 2010 and was ranked #863 in the 2010 Fortune 1000 list of companies. Schnitzer Steel common stock is traded on the NASDAQ Stock Market under the symbol SCHN.

With corporate headquarters based in Portland, Oregon, the company represents the complete cycle of reuse through its three integrated operating segments, the Metals Recycling Business, the Auto Parts Business and the Steel Manufacturing Business.

Website: http://www.schnitzersteel.com/

Pinksheets: http://www.otcmarkets.com/stock/SCHN/quote

IHUB: http://investorshub.advfn.com/Schnitzer-Steel-SCHN-25686/