Schnitzer Steel Industries Inc., headquartered in Portland, Oregon, has said that it completed the integration of its Auto Parts Business and Metals Recycling Business into a single Auto and Metals Recycling Business (AMR) during the fourth quarter of fiscal 2015. In accordance with the revised operating structure, the company says it plans to report financial segment and operating information for the combined AMR business for the fourth quarter and fiscal 2015, including comparable historical periods in its earnings release.
In advance of its full earnings release, Schnitzer also provided preliminary results for its fourth quarter of fiscal 2015. AMR is expected to generate operating income of approximately $16 million, which includes an estimated adverse impact from average inventory accounting of $5 million. Ferrous and nonferrous sales volumes are expected to be in line sequentially, while car purchase volumes for auto parts stores are expected to be approximately 10 percent higher than third quarter levels.
The company’s Steel Manufacturing Business saw slightly higher sales volumes combined with higher utilization rates, generating expected operating income in the range of $5 million to $6 million, Schnitzer says.
Schnitzer says it expects fourth quarter adjusted earnings per share from continuing operations to be in the range of 27 cents to 30 cents, which excludes restructuring charges of approximately 5 cents. Reported earnings per share from continuing operations are expected to be in the range of 37 cents to 40 cents, the company adds. Reported earnings per share are expected to be higher than adjusted earnings per share in light of the allocation of full year tax benefits to the fourth quarter, partly offset by restructuring charges.
The company says it also expects to report total debt of approximately $228 million as of Aug. 31, 2015, its lowest level since 2011.
The preliminary, unaudited information provided above is based on Schnitzer’s current estimate of its financial results for the fourth quarter ended Aug. 31, 2015, and remains subject to change based on management’s ongoing review of the company’s fourth quarter financial results and the completion of its annual audit.
Schnitzer says it will report the financial results for its fourth quarter and 2015 fiscal year Tuesday, Oct. 27, 2015. The company will webcast a conference call to discuss these results 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.