ZHENGYANG MACHINERY EQUIPMENT Co.,Ltd.

Schnitzer Steel to Witness 15% Spur in Ferrous Sales Volume

Schnitzer Steel Industries, Inc. announced preliminary results for its first quarter of fiscal 2019 ended November 30, 2018. The results have missed consensus estimates.

The expected Q1 earnings per share from continuing operations are likely to range between $0.53 and $0.57, as compared with $0.64 during the first quarter of fiscal 2018. The adjusted earnings per share are likely to remain in the range of $0.54-$0.58. For Q1 of fiscal 2018, the adjusted earnings per share were $0.63.

Coming to divisional operating performance, the Auto and Metals Recycling (AMR) operating income is likely to remain lower than the prior fiscal year’s first quarter. The notable decline in prices for zorba and other non-ferrous products are likely to result in compression of margins of the division. As per estimates, Q1 will see decline of nonferrous net selling prices by 19%, whereas the average ferrous net selling prices are expected to increase by approximately 5%. Over the prior year first quarter, ferrous and nonferrous sales volumes are expected to increase by around 15% and 18% respectively.

The higher average net selling prices for finished steel products, projected to increase by over 25% year-on-year, are likely to drive notable improvement in operating income from Cascade Steel and Scrap (CSS) division. However, the finished steel sales volumes are expected to decline by 6% over the previous year.