(RTTNews) - Tuesday, manufacturer of recycled ferrous metal products Schnitzer Steel Industries Inc. (SCHN: News ), reported a plunge in profit for the fourth quarter, hurt by a sharp decline in revenues at all its business segments, as a result of lower volumes and prices amid a weak U.S. economy. Nevertheless, both earnings and revenues came in well ahead of Street estimates

The Portland, Oregon-based company's net income for the fourth quarter plunged to $10.27 million or $0.36 per share from $126.38 million or $4.38 per share in the year-ago quarter.

On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.31 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

Quarterly revenues dropped sharply to $556.23 million from $1.31 billion in the previous year quarter, beating analysts consensus estimate of $520.00 million for the quarter.

Segment-wise, Metals Recycling business revenues for the quarter decreased 62% year-over-year to $452.12 million, primarily as a result of declines of 60% and 13% in ferrous net selling prices and ferrous processing sales volumes, respectively, and a 40% decline in nonferrous net sales prices.

Auto Parts Business revenues for the quarter decreased 27% to $74.78 million from last year, due to lower car volumes and lower prices for cores and scrap.

In the Steel Manufacturing business, the company's quarterly revenues declined 64% to $66.00 million from the previous-year quarter on a 37% decline in sales volumes and a 47%, or $449/ ton, decline in net average sales prices.
Operating income for the quarter was $16.22 million, compared to $200.00 million in the prior-year quarter.

For the full-year, the company posted a net loss of $32.23 million or $1.14 per share, compared to a net income of $248.68 million or $8.61 per share last year. Revenues for the period dropped to $1.90 billion from $3.64 billion in the year-ago period.

Analysts expected the company to post a loss of $1.20 per share on revenues of $1.86 billion for the full-year.

Looking ahead, Schnitzer said it continues to be encouraged by the level of economic activity in the primary overseas markets served by its Metals Recycling Business. The company also believes that its export platform and strong balance sheet has positioned it well to take advantage of growth opportunities during 2010 and beyond.

SCHN is currently trading at $47.99, down $3.20 or 6.25%, on a volume of 0.89 million shares on the Nasdaq Global Select Market.

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by RTT Staff Writer

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