Schnitzer Steel Industries Inc. (SCHN) reported that its net loss attributable to the company for fiscal 2015 third quarter ended May 31, 2015 was $9.63 million or $0.36 per share, compared to net income of $3.11 million or $0.12 per share in the same quarter last year.
The company's third quarter results reflected benefits from the cost reduction and productivity initiatives we announced in early April which led to improved sequential operating performance in all of its businesses. In Metals Recycling, ferrous volumes increased 29% and nonferrous sales volumes increased 21% versus the second quarter. Due to the rapid decline in ferrous selling prices in February, which impacted shipments in the third quarter, average inventory costs did not decline as quickly as selling prices, which led to an estimated $14 per ton, or $13 million, adverse impact of average inventory accounting which approximated the adverse impact in the second quarter.
The Company announced break-even adjusted earnings per share from continuing operations for the third quarter, compared to prior year third quarter adjusted earnings per share of $0.19.
Adjustments included charges for restructuring and exit-related costs and asset impairments. Third quarter adjusted results included an adverse impact from average inventory accounting of approximately $0.40 per share compared to a prior year third quarter adverse impact of $0.09 per share. Based on current market trends, estimated adverse inventory effects are expected to be substantially reduced in the fourth quarter.
Total Revenues for the quarter declined to $467.31 million from $635.47 million in the prior year.
Analysts polled by Thomson Reuters expected the company to report a loss of $0.14 per share and revenues of $503.76 million for the quarter. Analysts' estimates typically exclude special items.
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