Schnitzer Steel Industries, Inc. (SCHN) announced that the company expects sequentially lower consolidated net income for its third quarter, ending May 31, 2013. The company said during the quarter, ferrous export selling prices declined steadily with market prices at the end of May approximately $50 per ton lower than at the end of the second quarter of fiscal 2013 driven primarily by lower export demand.
Schnitzer Steel expects the combination of declining selling prices, continued constrained supply trends, and lower tax benefits to result in sequentially lower consolidated net income for the quarter.
In the third quarter, Schnitzer expects to incur a pre-tax restructuring charge of approximately $1 million in connection with August 2012 restructuring program. The company's full year tax rate for fiscal 2013 is anticipated to be approximately 33%. The company noted that it anticipates third-quarter effective tax rate will be significantly higher than the anticipated full year rate.
The company said, in the first three quarters of fiscal 2013, consolidated SG&A, excluding the impact of recent acquisitions, is expected to be approximately 9% lower as compared to the prior year period, which is on track with the restructuring program announced in August 2012.
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