Supported by high finished steel and scrap prices, Schnitzer Steel Industries Inc. expects its results for full-year fiscal 2022 to be the second best in the company’s history.
This week, the Portland, Ore.-based scrap recycler and long steel producer announced its preliminary results for the fourth quarter and fiscal year ended Aug. 31, 2022.
Although the company had a record performance in the first nine months of the year, its fiscal Q4 results were hit by falling ferrous and nonferrous sales prices and demand as well as by tighter supply flows. Strong prices for finished steel were offset by costs related to an extended shredding operation outage at its Everett, Mass., facility after a fire in December 2021.
Schnitzer expects to report fiscal 2022 net income of $170–172 million, which will be comparable to the previous fiscal year’s net income of $170 million. Fiscal Q4 net income is expected to be $9–11 million, down from $76 million from the prior quarter when demand and pricing were stronger.
“Despite the current headwinds, we believe the long-term structural trends for recycled metal demand remain positive and are well-aligned with our strategy and investments. The transition to low carbon technologies, which are more metal intensive, the increased focus on decarbonization, and the expected funding related to the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, including Buy Clean provisions, underpin anticipated increased future demand for ferrous and nonferrous recycled metals,” Chairwoman and CEO Tamara Lundgren said.
Schnitzer will report its full financial results for fiscal Q4 and full-year 2022 on Monday, Oct. 24.
By Laura Miller, Laura@SteelMarketUpdate.com
Laura MillerRead more from Laura Miller
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