Schnitzer Reports Second Quarter Fiscal 2021 Financial Results
by David Fleschen
Shnitzer Steel Industries, Inc. reported results for its second quarter of fiscal 2021 ended February 28, 2021.
Second Quarter Fiscal 2021 Highlights
- Diluted earnings per share from continuing operations of $1.54, more than triple earnings per share of $0.50 in the first quarter of fiscal 2021, and compared to $0.14 in the second quarter of fiscal 2020
- Adjusted diluted earnings per share from continuing operations of $1.51, compared to adjusted diluted earnings per share of $0.57 in the first quarter of fiscal 2021 and $0.31 in the second quarter of fiscal 2020
- Net income of $46 million, more than triple the net income of $15 million in the first quarter of fiscal 2021, and compared to net income of $5 million in the second quarter of fiscal 2020
- Adjusted EBITDA of $71 million in the quarter, compared to adjusted EBITDA of $40 million in the first quarter of fiscal 2021 and $28 million in the second quarter of fiscal 2020
The Company’s performance benefited from strong global demand for recycled metals and finished steel products, with selling prices for ferrous and nonferrous scrap reaching multi-year highs. The sharp increase in selling prices during the quarter contributed to the Company’s strong margins, while ferrous sales volumes were impacted by severe weather, which affected the timing of shipments. Operating results also benefited from the continued strength in West Coast demand for finished steel products, as well as the execution of commercial initiatives and productivity improvements supported by the One Schnitzer operating platform.
Tamara Lundgren, Chairman and Chief Executive Officer, stated, “We are exceptionally pleased with our performance during the quarter, reflecting our best operating income per ton since 2008. This is a testament to the strength and agility of our team in leveraging positive market conditions while delivering on our operational and strategic initiatives. Since the end of the second quarter, we have commissioned two of the advanced metal recovery technology systems which are key to the execution of our strategic plan and the achievement of our Sustainability goals.”
Ms. Lundgren continued, “Price volatility during the quarter was significant, but trading was maintained at much higher price levels than in the recent past, reflecting the stronger demand associated with both the economic recovery and positive structural commodity trends. Decarbonization and broader ESG factors, together with the catalytic effect of global stimulus, are serving as structural drivers of demand for recycled metals. Scrap, in other words, is an important strategic solution for companies, industries and governments that are focused on carbon reduction.”
Source: Schnitzer Steel, Photo: Fotolia