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Schnitzer Steel Industries Inc. Reports Operating Results (10-K)

October 25, 2012 | About:
10qk

10qk

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Schnitzer Steel Industries Inc. (SCHN) filed Annual Report for the period ended 2012-08-31.

Schnitzer Steel Industries, Inc. has a market cap of $760.7 million; its shares were traded at around $29.3 with a P/E ratio of 12.2 and P/S ratio of 0.2. The dividend yield of Schnitzer Steel Industries, Inc. stocks is 2.6%. Schnitzer Steel Industries, Inc. had an annual average earning growth of 14.6% over the past 10 years.

Highlight of Business Operations:

MRB revenues and operating income of $2.9 billion and $64 million, respectively, compared to $3.1 billion and $165 million for the year ended August 31, 2011, respectively;

SMB revenues and operating loss of $333 million and $2 million, respectively, compared to $317 million and operating income of $3 million for the year ended August 31, 2011, respectively.

The decrease in ferrous revenues was primarily due to lower sales volumes due to soft global demand and constrained supply of raw materials. Ferrous sales volumes decreased 214 thousand long tons, or 4%, to 5,115 thousand long tons compared to the prior year. Despite sharp but temporary periods of pricing declines that occurred in the first and third quarters of fiscal 2012, average net selling prices decreased $1 per long ton, or less than 1%, to $415 per long ton compared to the prior year, with a decrease in export prices being substantially offset by an increase in domestic prices.

The decrease in nonferrous revenues was driven by a decrease in average net selling prices as a result of weak market conditions. In fiscal 2012, average net selling prices decreased $0.12 per pound, or 11%, to $0.94 per pound compared to the prior year. This was partially offset by an increase in nonferrous sales volumes of 60 million pounds, or 11%, including higher nonferrous sales

Cash provided by operating activities in fiscal 2012 included a decrease in inventories of $94 million due to lower volumes of material purchases and a decrease of $82 million in accounts receivable due to lower sales volumes and the timing of collections. Uses of cash included a decrease in accounts payable of $26 million due to lower levels of material purchases and timing of payments and a decrease in accrued income taxes of $20 million due to lower financial results compared to the prior fiscal year.

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