Exhibit 99.1
Schnitzer Steel Reports Third Quarter 2010 Financial Results
Highest Earnings Since Fourth Quarter FY08
Record Third Quarter Processed Sales Volumes in Metals Recycling
Record Quarterly Operating Income in Auto Parts
PORTLAND, Ore.--(BUSINESS WIRE)--June 30, 2010--Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today reported diluted earnings per share from continuing operations of $1.43 for its fiscal 2010 third quarter ended May 31, 2010. This compares with a loss per share from continuing operations of ($0.01) for the same quarter of fiscal 2009.
| Summary of Results from Continuing Operations | | Third Quarter 2010* | | Third Quarter 2009* | | Second Quarter 2010* |
| ($ in millions) | | | |
| | | |
| Revenues | | $ | 704 | | $ | 382 | | | $ | 564 |
| Operating Income (Loss) | | $ | 64 | | ($ | 4 | ) | | $ | 29 |
| Income (Loss) from Continuing Operations Attributable to SCHN** | | $ | 40 | | $ | 0 | | | $ | 18 |
| | | | | | |
| * Excludes the results from discontinued operations. ** Excludes the income (loss) attributable to non-controlling interests. |
“We delivered our best earnings performance since the downturn began, with improved operating profits in each of our three businesses,” said Tamara Lundgren, President and Chief Executive Officer. “Our sales volumes of ferrous metals in the first three quarters of fiscal 2010 have remained near the levels of the boom year of fiscal 2008 and we achieved record third quarter ferrous processing sales volumes, underscoring the long-term strength of the global demand for recycled metals. Our business model and platform allowed our Metals Recycling Business to respond nimbly to the swings in prices for recycled metals during the third quarter.
“Our Auto Parts Business achieved record operating income and increased its purchases of vehicles to the level of the first quarter without benefiting from the Cash for Clunkers program,” she added. “Our Steel Manufacturing Business achieved operating profitability for the quarter, primarily driven by higher sales prices and increased mill utilization.”
Drivers of the results, by business unit, for the third quarter included:
- The Metals Recycling Business saw continuing strong demand and expanded margins. The business capitalized on higher average net sales prices and improved raw material flows. Operating profit margin expanded to $45 per ferrous ton, up from $24 in the second quarter of fiscal 2010. Operating income rose 85% over the second quarter to $53 million.
- The Auto Parts Business grew quarterly operating income to $18 million, up 41% compared with the second quarter. It benefited from strong commodity markets, normal seasonal improvements in admissions and parts sales, positive performance from the six stores that were acquired earlier in the fiscal year, and improved operating efficiencies. Operating profit margins increased to 27%, up from 23% in the second quarter.
- The Steel Manufacturing Business achieved its best performance since the fourth quarter of fiscal 2008, with operating income of $4 million. This was primarily the result of higher sales volumes and sales prices, which offset higher raw material costs.
Metals Recycling Business: Results
The Metals Recycling Business delivered its highest earnings since the fourth quarter of fiscal 2008, with continued revenue and operating income growth.
| Summary of Metals Recycling Business | | Third Quarter 2010 | | Third Quarter 2009 | | Second Quarter 2010 |
($ in millions, except selling prices; ferrous volumes in thousand long tons; nonferrous volumes in million pounds) | | | |
| | |
| Total Revenues | | $ | 618 | | $ | 318 | | $ | 489 |
| Ferrous Revenues | | $ | 496 | | $ | 268 | | $ | 400 |
Ferrous Volumes | | | 1,175 | | | 1,037 | | | 1,174 |
| Avg. Net Ferrous Sales Price ($/LT) (1) | | $ | 378 | | $ | 223 | | $ | 297 |
| Nonferrous Volumes | | | 124 | | | 90 | | | 105 |
| Avg. Net Nonferrous Sales Prices ($/LB) (1) | | $ | 0.94 | | $ | 0.51 | | $ | 0.80 |
| Operating Income | | $ | 53 | | $ | 6 | | $ | 29 |
| | | | | | |
| (1) Sales prices are shown net of freight. |
“Selling prices for ferrous scrap fluctuated sharply in the latter part of the third quarter as the markets responded to broadly-based global demand,” said Lundgren. “Our operating profit margin expanded during the third quarter reflecting increased selling prices, improved flows of raw materials and continued benefits from production efficiencies.”
Sales Volumes: Third quarter volumes for ferrous scrap were in line with the volumes of the second quarter, while nonferrous volumes increased 18% over the second quarter.
Export customers accounted for approximately 71% of total ferrous sales volume. The top export destinations were South Korea, Malaysia and Egypt, with shipments to 10 countries.
Pricing: Sales prices for ferrous scrap averaged $378 per ton in the third quarter of fiscal 2010, up 27% from the second quarter. Pricing for deliveries in the first part of the quarter reflected the steady rise in prices that began in November 2009. Prices rose sharply for deliveries in the second part of the quarter, reflecting the strong worldwide demand. Nonferrous prices also rose, consistent with the higher sales volumes.
The higher ferrous sales prices and volumes in the third fiscal quarter of 2010 drove revenues up 26% over the second quarter of fiscal 2010, and 95% over the third quarter of fiscal 2009.
Margins: Operating income margin was $45 per ferrous ton in the third quarter of fiscal 2010, up significantly from the $24 per ferrous ton margin in the second quarter and $6 per ferrous ton in the third quarter of fiscal 2009. This primarily reflected increased selling prices, improved flows of raw materials and continued benefits from production efficiencies.
Metals Recycling Business: Outlook
The following summary of management’s outlook for the Metals Recycling Business in the fourth quarter of fiscal 2010 is subject to uncertainty that may affect future results.
Sales Volumes. Ferrous sales volumes are expected to approximate or increase slightly from the strong volumes in the third quarter, reflecting continued export demand. Nonferrous sales volumes are expected to decline slightly from this year's third quarter. As always, quarterly sales volumes depend heavily on the timing of shipments.
Pricing. Market prices for ferrous scrap have dropped sharply in recent weeks from the peaks achieved during the fiscal third quarter. Although the market tone has begun to improve, average ferrous net sales prices in the fourth quarter are expected to be between the average prices achieved in the second and third quarters of this fiscal year. Nonferrous average prices are expected to approximate the levels of the second quarter.
Margins. Fourth quarter margins are expected to be significantly lower than third quarter margins. Forward selling prices dropped sharply in the second part of the third quarter. Although average cash metal spreads are expected to remain strong, average inventory costs are expected to decline in the fourth quarter more slowly than ferrous scrap prices, narrowing margins. However, taken together with the third quarter, fourth quarter operating income is expected to result in margins for the second half of the fiscal year that are moderately higher than in the second quarter of fiscal 2010.
Auto Parts Business: Results
The Auto Parts Business recorded its sixth consecutive sequential increase in operating income from continuing operations and record-setting quarterly operating income.
Summary of Auto Parts Business | | Third Quarter 2010* | | Third Quarter 2009* | | Second Quarter 2010* |
| ($ in millions, except locations) | | | |
| | | |
| Revenues | | $ | 68 | | $ | 36 | | $ | 55 |
| Operating Income | | $ | 18 | | $ | 5 | | $ | 13 |
| Self-Service Locations | | | 45 | | | 39 | | | 45 |
| | | | | | |
| *Excludes the results from discontinued operations. |
"The record quarterly operating income of the Auto Parts Business reflects the benefits of our focus on the self-service distribution channel and our improved operating efficiencies,” Lundgren said.
Revenues: Revenues from continuing operations increased $13 million, or 23%, over the second quarter of 2010, and 87% over the third quarter of fiscal 2009. The improvements reflected higher revenues across all major components of sales: cores, scrap, parts and admissions; increases in vehicle purchases; and a strong contribution from the six stores acquired in fiscal 2010.
Margins: Operating profit margins of 27% increased from 23% in the second quarter due to improved parts sales and admissions, stronger commodity markets and sales prices for scrapped vehicles which increased at a greater rate than inventory costs for purchased vehicles. Margins also continued to benefit from improved operating efficiencies.
Auto Parts Business: Outlook
The following summary of management’s outlook for the Auto Parts Business in the fourth quarter of fiscal 2010 is subject to uncertainty that may affect future results.
Revenues. Compared with the third quarter of fiscal 2010, revenues in the fourth quarter of fiscal 2010 are expected to decline slightly due to lower commodity prices and normal seasonal declines in admissions and parts sales.
Margins. Margins are expected to decline significantly from the third quarter. The drivers include lower revenues and a narrower spread between sales prices and the purchase costs for scrapped vehicles. Combined margins for the second half of fiscal 2010 are expected to approximate the strong margins in the first half of fiscal 2010.
Steel Manufacturing Business: Results
The Steel Manufacturing Business delivered operating income of $4 million, its best performance since the fourth quarter of fiscal 2008.
| Summary of Steel Manufacturing Business | | Third Quarter 2010 | | Third Quarter 2009 | | Second Quarter 2010 |
| ($ in millions, except selling prices; | | | |
| volumes in thousand tons) | | | |
| Revenues | | $ | 86 | | $ | 47 | | | $ | 56 | |
| Avg. Net Sales Prices ($/T)(1) | | $ | 635 | | $ | 524 | | | $ | 556 | |
| Finished Goods Sales Volumes(1) | | | 131 | | | 85 | | | | 96 | |
| Operating Income (Loss) | | $ | 4 | | | ($ 5 | ) | | | ($ 2 | ) |
| | | | | | |
| (1) Excludes billet sales. | | | | | | |
“Although demand for manufactured steel products on the U.S. West Coast remained weak, our team was able to capitalize on the mill’s diversified product line to grow its sales volumes,” said Lundgren. “The higher sales volumes allowed us to increase mill utilization to 64% in the third quarter from 51% in the second quarter, and our successful cost containment initiatives aided the efforts to meet our goal of operating profitability.”
Sales Volumes: Finished goods sales volumes increased 36% over the second quarter, primarily reflecting modest improvements in the business environment at the beginning of the quarter.
Pricing: Average net sales prices for finished steel products increased by 14%, or $79 per ton, compared with the second quarter and by 21% compared with the third quarter of fiscal 2009. The higher prices were the result of price increases that offset the higher costs of raw materials.
Margins: Margin improvement for the quarter resulted from higher capacity utilization, higher average sales prices and a full quarter’s impact of cost containment initiatives implemented during the second quarter.
Steel Manufacturing Business: Outlook
The following summary of management’s outlook for the Steel Manufacturing Business in the fourth quarter of fiscal 2010 is subject to uncertainty that may affect future results.
Sales Volumes: Overall market demand is expected to remain weak in the fourth quarter of fiscal 2010. Sales volumes are expected to decrease slightly from the improved levels of the third quarter of fiscal 2010. The business remains one of the few West Coast producers of long steel products, leaving it well-positioned to capitalize on stimulus and infrastructure spending when it occurs.
Pricing: The Company expects average sales prices to approximate or decline slightly from the third quarter.
Margins: Fourth quarter fiscal 2010 operating profit margins are expected to approximate or be slightly below breakeven levels.
Discontinued Operations
The Company completed the sale of its Greenleaf full-service used auto parts business to LKQ on Oct. 2, 2009. For comparison purposes, the net losses and fully diluted losses per share directly attributable to Greenleaf for prior periods are disclosed separately in the Company's financial statements as "Discontinued Operations."
Analysts' Conference Call: Third Quarter of Fiscal 2010
A conference call and slide presentation to discuss results will be held today, June 30, 2010, at 5:00 p.m. EST. It will be hosted by Tamara Lundgren, President and Chief Executive Officer, and Richard Peach, Chief Financial Officer. The call and the slides will be webcast and accessible on the Company's website at www.schnitzersteel.com.
The slides and related materials will be available prior to the call on the website.
About Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 42 operating facilities located in 13 states and Puerto Rico, including seven export facilities located on both the East and West Coasts and in Hawaii and Puerto Rico. The Company's vertically integrated operating platform also includes its auto parts and steel manufacturing businesses. The Company's auto parts business sells used auto parts through its 45 self-service facilities located in 14 states and in western Canada. With an effective annual production capacity of approximately 800,000 tons, the Company's steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 104th year of operations in fiscal 2010.
Safe Harbor for Forward-Looking Statements
This news release, particularly the Outlook sections, contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, (the "Exchange Act") which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company's outlook for the business and statements as to expected product demand, pricing, sales volumes, operating margins, operating income, tax rates and benefits of cost containment measures. Such statements can generally be identified because they contain "expect," "believe," "anticipate," "estimate" and other words that convey a similar meaning. One can also identify these statements as statements that do not relate strictly to historical or current facts. Examples of factors affecting the Company that could cause actual results to differ materially from current expectations are the following: volatile supply and demand conditions affecting prices and volumes in the markets for both the Company's products and the raw materials it purchases; world economic conditions; world political conditions; the Company's ability to match output with demand; changes in federal and state income tax laws; government regulations and environmental matters; impact of pending or new laws and regulations regarding imports and exports into the United States and other countries; foreign currency fluctuations; competition; seasonality, including weather; energy supplies; freight rates and availability of transportation; loss of key personnel; the inability to obtain sufficient quantities of scrap metal to support current orders; purchase price estimates made during acquisitions; business integration issues relating to acquisitions of businesses; new accounting pronouncements; availability of capital resources; creditworthiness of and availability of credit to suppliers and customers; adverse impact of climate changes, including as a result of treaties, legislation or regulations; and business disruptions resulting from installation or replacement of major capital assets, as discussed in more detail in "Management's Discussion and Analysis of Financial Condition and Results of Operations" or "Risk Factors" in the Company's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. One should understand that it is not possible to predict or identify all factors that could cause actual results to differ from the Company's forward-looking statements. Consequently, the reader should not consider any such list to be a complete statement of all potential risks or uncertainties. The Company does not assume any obligation to update any forward-looking statement, except as may be required by law.
| SCHNITZER STEEL INDUSTRIES, INC. |
| FINANCIAL HIGHLIGHTS |
| (in thousands, except per share amounts) |
| (Unaudited) |
| |
| | For the Three Months Ended |
| | May 31, | | February 28, | | May 31, |
| | 2010 (1) | | | 2010 (1) | | | 2009 (1) | |
| REVENUES: | | | | | | | | | |
| | | | | | | | | |
| Metals Recycling Business: | | | | | | | | | |
| Ferrous sales | | $ | 495,658 | | | $ | 399,995 | | | $ | 267,548 | |
| Nonferrous sales | | | 120,527 | | | | 87,748 | | | | 48,541 | |
Other sales | | | 1,951 | | | | 1,607 | | | | 1,435 | |
| TOTAL MRB SALES | | | 618,136 | | | | 489,350 | | | | 317,524 | |
| | | | | | | | | |
| Auto Parts Business | | | 67,580 | | | | 54,803 | | | | 36,050 | |
| Steel Manufacturing Business | | | 86,407 | | | | 55,544 | | | | 46,822 | |
| Intercompany sales eliminations | | | (68,584 | ) | | | (35,369 | ) | | | (18,367 | ) |
| TOTAL | | $ | 703,539 | | | $ | 564,328 | | | $ | 382,029 | |
| | | | | | | | | |
| INCOME (LOSS) FROM CONTINUING OPERATIONS: | | | | | | | | | |
| | | | | | | | | |
| Metals Recycling Business | | $ | 53,061 | | | $ | 28,671 | | | $ | 6,034 | |
| Auto Parts Business | | | 18,173 | | | | 12,871 | | | | 4,609 | |
| Steel Manufacturing Business | | | 3,904 | | | | (2,124 | ) | | | (4,961 | ) |
| Corporate expense | | | (10,547 | ) | | | (10,431 | ) | | | (10,593 | ) |
| Intercompany eliminations | | | (816 | ) | | | (450 | ) | | | 669 | |
| OPERATING INCOME (LOSS) | | | 63,775 | | | | 28,537 | | | | (4,242 | ) |
| | | | | | | | | |
| (1) Excludes discontinued operations | | | | | | | | | |
| |
| SCHNITZER STEEL INDUSTRIES, INC. |
| CONDENSED CONSOLIDATED STATEMENT OF INCOME |
| (in thousands, except per share amounts) |
| (Unaudited) |
| | |
| | For the Three Months Ended |
| | May 31, | | February 28, | | May 31, |
| | 2010 | | | 2010 | | | 2009 | |
| Revenues | | $ | 703,539 | | | $ | 564,328 | | | $ | 382,029 | |
| | | | | | | | | |
| | | | | | | | | |
| Cost of goods sold | | | 598,721 | | | | 496,582 | | | | 347,434 | |
| Selling, general and administrative | | | 42,779 | | | | 39,661 | | | | 38,721 | |
| Environmental matters | | | 141 | | | | (532 | ) | | | 0 | |
| (Income) loss from joint ventures | | | (1,877 | ) | | | 80 | | | | 116 | |
| | | | | | | | | |
| Operating income (loss) | | | 63,775 | | | | 28,537 | | | | (4,242 | ) |
| | | | | | | | | |
| Other income (expense): | | | | | | | | | |
| Interest expense | | | (503 | ) | | | (695 | ) | | | (629 | ) |
| Other income | | | 201 | | | | 471 | | | | 5,634 | |
| Other income (expense) | | | (302 | ) | | | (224 | ) | | | 5,005 | |
| | | | | | | | | |
| Income from continuing operations before income taxes | | | 63,473 | | | | 28,313 | | | | 763 | |
| | | | | | | | | |
| Income tax expense | | | (21,715 | ) | | | (9,736 | ) | | | (723 | ) |
| | | | | | | | | |
| Income from continuing operations | | | 41,758 | | | | 18,577 | | | | 40 | |
| | | | | | | | | |
| Income (loss) from discontinued operations, net of tax | | | 23 | | | | (72 | ) | | | (1,058 | ) |
| | | | | | | | | |
| Net income (loss) | | | 41,781 | | | | 18,505 | | | | (1,018 | ) |
| | | | | | | | | |
| Net income attributable to noncontrolling interests | | | (1,328 | ) | | | (1,046 | ) | | | (509 | ) |
| | | | | | | | | |
| Net (loss) income attributable to SSI | | $ | 40,453 | | | $ | 17,459 | | | $ | (1,527 | ) |
| | | | | | | | | |
| Basic: | | | | | | | | | |
| Income (loss) per share from continuing operations attributable to SSI (1) (2) | | | 1.45 | | | | 0.63 | | | | (0.01 | ) |
| Income (loss) per share from discontinued operations attributable to SSI | | | 0.00 | | | | 0.00 | | | | (0.04 | ) |
| Net income (loss) per share attributable to SSI | | $ | 1.45 | | | $ | 0.63 | | | $ | (0.05 | ) |
| | | | | | | | | |
| Diluted: | | | | | | | | | |
| Income (loss) per share from continuing operations attributable to SSI (1) (2) | | | 1.43 | | | | 0.62 | | | | (0.01 | ) |
| Income (loss) per share from discontinued operations attributable to SSI | | | 0.00 | | | | 0.00 | | | | (0.04 | ) |
| Net income (loss) per share attributable to SSI | | $ | 1.43 | | | $ | 0.62 | | | $ | (0.05 | ) |
| | | | | | | | | |
| Weighted average number of common shares: | | | | | | | | | |
| Basic | | | 27,898 | | | | 27,873 | | | | 28,280 | |
| Diluted | | | 28,211 | | | | 28,117 | | | | 28,280 | |
| | | | | | | | | |
| Dividends declared per common share | | $ | 0.017 | | | $ | 0.017 | | | $ | 0.017 | |
| | | | | | | | | |
(1) Excludes income (loss) attributable to noncontrolling interests | | | | | | | | | |
(2) Net (loss) income used in EPS calculation: | | | | | | | | | |
| Income from continuing operations | | $ | 41,758 | | | $ | 18,577 | | | | 40 | |
| Net income attributable to noncontrolling interests | | | (1,328 | ) | | | (1,046 | ) | | | (509 | ) |
| Income (loss) from continuing operations attributable to SSI | | | 40,430 | | | | 17,531 | | | | (469 | ) |
| Income (loss) from discontinued operations, net of tax | | | 23 | | | | (72 | ) | | | (1,058 | ) |
| Net (loss) income attributable to SSI | | $ | 40,453 | | | $ | 17,459 | | | $ | (1,527 | ) |
| |
| SCHNITZER STEEL INDUSTRIES, INC. |
| SELECTED OPERATING STATISTICS |
| (Unaudited) |
| | | | | | | | | | | | | | | | | | | |
| | Q1 FY10 | | Q2 FY10 | | Q3 FY10 | | Total YTD
FY10 | | Q1 FY09 | | Q2 FY09 | | Q3 FY09 | | Q4 FY09 | | Total
FY09 | |
| Metals Recycling Business | | | | | | | | | | | | | | | | | | | |
| Ferrous Processing Selling Prices ($/LT)(1) | | | | | | | | | | | | | | | | | | | |
| Domestic(2) | | $ | 271 | | $ | 294 | | $ | 368 | | $ | 317 | | $ | 371 | | $ | 209 | | $ | 186 | | $ | 250 | | $ | 275 | |
| Exports | | | 280 | | | 298 | | | 382 | | | 325 | | | 353 | | | 259 | | | 228 | | | 251 | | | 262 | |
| Average | | | 277 | | | 297 | | | 378 | | | 323 | | | 359 | | | 253 | | | 223 | | | 251 | | | 264 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| Ferrous Processing Sales Volume (LT)(2) | | | | | | | | | | | | | | | | | | | |
| Cascade | | | 122,171 | | | 80,728 | | | 139,404 | | | 342,303 | | | 145,493 | | | 29,761 | | | 55,162 | | | 104,428 | | | 334,844 | |
| Domestic | | | 134,595 | | | 160,424 | | | 197,226 | | | 492,245 | | | 129,620 | | | 99,275 | | | 86,555 | | | 101,972 | | | 417,422 | |
| Export | | | 499,899 | | | 933,123 | | | 838,766 | | | 2,271,788 | | | 503,635 | | | 954,003 | | | 895,167 | | | 1,083,472 | | | 3,436,277 | |
| Total Processed | | | 756,665 | | | 1,174,275 | | | 1,175,396 | | | 3,106,336 | | | 778,748 | | | 1,083,039 | | | 1,036,884 | | | 1,289,872 | | | 4,188,543 | |
| | | | | | | | | | | | | | | | | | | |
| Nonferrous Average Price ($/pound)(1) | | $ | 0.73 | | $ | 0.80 | | $ | 0.94 | | $ | 0.83 | | $ | 0.78 | | $ | 0.45 | | $ | 0.51 | | $ | 0.63 | | $ | 0.61 | |
| | | | | | | | | | | | | | | | | | | |
| Nonferrous Sales Volume (pounds, in thousands) | | | 110,247 | | | 104,892 | | | 124,283 | | | 339,422 | | | 107,359 | | | 76,822 | | | 90,226 | | | 122,649 | | | 397,056 | |
| | | | | | | | | | | | | | | | | | | |
| Steel Manufacturing Business | | | | | | | | | | | | | | | | | | | |
| Sales Prices ($/NT)(1)(3) | | | | | | | | | | | | | | | | | | | |
| Average | | $ | 520 | | $ | 556 | | $ | 635 | | $ | 576 | | $ | 864 | | $ | 570 | | $ | 524 | | $ | 509 | | $ | 617 | |
| | | | | | | | | | | | | | | | | | | |
| Sales Volume (NT)(3) | | | | | | | | | | | | | | | | | | | |
| Rebar | | | 55,875 | | | 42,588 | | | 52,792 | | | 151,255 | | | 46,917 | | | 56,588 | | | 52,749 | | | 70,542 | | | 226,796 | |
| Coiled Products | | | 38,051 | | | 47,660 | | | 70,738 | | | 156,449 | | | 45,051 | | | 19,332 | | | 25,798 | | | 36,949 | | | 127,130 | |
| Merchant Bar and Other | | | 6,249 | | | 6,147 | | | 7,840 | | | 20,236 | | | 6,235 | | | 6,783 | | | 6,820 | | | 7,343 | | | 27,181 | |
| Total | | | 100,175 | | | 96,395 | | | 131,370 | | | 327,940 | | | 98,203 | | | 82,703 | | | 85,367 | | | 114,834 | | | 381,107 | |
| | | | | | | | | | | | | | | | | | | |
| Auto Parts Business | | | | | | | | | | | | | | | | | | | |
| Number of self-service locations at end of quarter | | | 43 | | | 45 | | | 45 | | | 45 | | | 38 | | | 40 | | | 39 | | | 39 | | | 39 | |
| Number of full-service sites at end of quarter | | | 0 | | | 0 | | | 0 | | | 0 | | | 18 | | | 18 | | | 18 | | | 18 | | | 18 | |
| | | | | | | | | | | | | | | | | | | |
| (1) Price information is shown after a reduction for the cost of freight incurred to deliver the product to the customer. |
| (2) Includes sales to the Steel Manufacturing Business for all quarters. | |
| (3) Excludes billet sales. |
| |
| SCHNITZER STEEL INDUSTRIES, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (Unaudited, in thousands, except per share amounts) |
| |
| | May 31, 2010 | | August 31, 2009 | | | May 31, 2009 |
Assets | | | | | | | | | |
| Current assets: | | | | | | | | | |
| Cash and cash equivalents | | $ | 31,524 | | $ | 41,026 | | $ | 48,721 |
| Accounts receivable, net | | | 138,371 | | | 117,666 | | | 85,740 |
| Inventories, net | | | 291,273 | | | 184,455 | | | 211,097 |
| Other current assets | | | 26,966 | | | 67,867 | | | 68,358 |
| Total current assets | | | 488,134 | | | 411,014 | | | 413,916 |
| | | | | | | | | |
| Property, plant and equipment, net | | | 438,354 | | | 447,228 | | | 454,303 |
| | | | | | | | | |
| Goodwill and other assets | | | 423,670 | | | 409,991 | | | 412,468 |
| | | | | | | | | |
| Total assets | | $ | 1,350,158 | | $ | 1,268,233 | | $ | 1,280,687 |
| | | | | | | | | |
Liabilities and Shareholders’ Equity | | | | | | | | | |
| Current liabilities: | | | | | | | | | |
| Short-term borrowings | | $ | 1,238 | | $ | 1,317 | | $ | 1,370 |
| Other current liabilities | | | 169,295 | | | 138,812 | | | 134,408 |
| Total current liabilities | | | 170,533 | | | 140,129 | | | 135,778 |
| | | | | | | | | |
| Long-term debt and capital lease obligations | | | 99,371 | | | 110,414 | | | 124,624 |
| | | | | | | | | |
| Other long-term liabilities | | | 100,188 | | | 94,940 | | | 79,249 |
| | | | | | | | | |
| Equity: | | | | | | | | | |
| Total Schnitzer Steel Industries, Inc. (“SSI”) Shareholders’ equity | | | 975,383 | | | 919,367 | | | 938,036 |
| Noncontrolling interests | | | 4,683 | | | 3,383 | | | 3,000 |
| Total equity | | | 980,066 | | | 922,750 | | | 941,036 |
| | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 1,350,158 | | $ | 1,268,233 | | $ | 1,280,687 |
CONTACT:
Schnitzer Steel Industries, Inc.
Investors:
Rob Stone, 503-224-9900
or
Media:
Tom Zelenka, 503-323-2821
Website: www.schnitzersteel.com
Email: ir@schn.com
