Schnitzer Steel Industries Inc. (NASDAQ:SCHN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Schnitzer Steel Industries Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 2.86% to $0.36 in the quarter versus EPS of $0.35 in the year-earlier quarter.
Revenue: Decreased 25.33% to $662 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Schnitzer Steel Industries Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.24. It missed the average revenue estimate of $683.44 million.
Quoting Management: “Our operating performance improved significantly during our second quarter, led by rising commodity prices, improved volumes in both our Metals Recycling and Auto Parts Businesses, and the operational efficiencies we have gained through the implementation of our cost reduction program,” said Tamara Lundgren, President and Chief Executive Officer. “During the first half of fiscal 2013, our restructuring initiatives delivered an 11% reduction in SG&A year over year while we continued to advance our strategic growth initiatives. In the second quarter, our Auto Parts Business significantly improved its sequential operating margin to 11% for stores owned more than a year and added ten new sites which will provide access to additional supply in our core markets. In our Metals Recycling Business, we completed testing of our new shredder which will provide increased processing capabilities in Western Canada during the third quarter of fiscal 2013. Embedded in both growth initiatives is the opportunity to generate enhanced synergies between our Metals Recycling and Auto Parts Businesses. As 2013 progresses, we will continue to focus on delivering improved operational performance, maintaining our strong balance sheet and optimizing our cost base, while continuing to pursue our growth strategy.”
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