Schnitzer Steel Industries Inc. (SCHN: Quote) said that it expects earnings per share for the second quarter to be approximately $0.28 - $0.35. Weaker market conditions resulted in segment operating margins that were lower than anticipated due to falling sales prices in the latter half of the quarter. Analysts polled by Thomson Reuters expect the company to report earnings of $0.55 per share for the second-quarter. Analysts' estimates typically exclude special items.
For the second-quarter, the company expects to report strong operating cash flows primarily as a result of a reduction in working capital levels due to sales volumes exceeding scrap purchase volumes which lowered inventories. Total debt to total capital is expected to approximate 27%, down from 31% at the end of the first quarter of fiscal 2012.
In Metals Recycling Business, operating income per ferrous ton is expected to be $14-15, approximately 30% higher than the first quarter of fiscal 2012, but below the outlook in its first quarter earnings release primarily due to lower selling prices as a result of softer demand than anticipated in the latter part of the quarter.
In Auto Parts Business, operating margins are expected to be 10-11% due to the impact of the weaker selling prices for scrap and cores later in the quarter and higher vehicle purchase costs due to tight supply markets for end of life vehicles.
In Steel Manufacturing Business, volumes increased slightly from the first quarter as expected. However, operating results are expected to be slightly less than breakeven, approximating results in the second quarter of 2011.
The company said that it will report the financial results for its fiscal 2012 second quarter, which ended on February 29, 2012, on Thursday, April 5, 2012.
| || |
| To receive FREE breaking news email alerts for Schnitzer Steel Industries Inc. and others in your portfolio|
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org