SCHN - Schnitzer Steel's Q4 earnings dip as selling prices drop for recycled metals

Schnitzer Steel ( NASDAQ: SCHN ) -3.2% in early trading Monday after reporting FQ4 adjusted earnings that beat estimates but fell by more than two thirds from the year-earlier quarter, due to lower selling prices for recycled metals and declining demand.

Q4 net income fell 75% to $11.1M, or $0.36/share, from $34.8M, or $1.43/share, in the prior-year period, while revenues rose 5.8% Y/Y to a better than forecast $894.4M.

The steel manufacturing and scrap metal company company, which closed the first nine months of its financial year with a record performance, said Q4 results were hurt by declining ferrous and nonferrous sales prices in a challenging macroeconomic environment.

Schnitzer ( SCHN ) also said tighter supply flows and disruptions linked to an extended metal shredder outage at the company's plant in Everett, Mass. recycling facility, also hurt Q4 earnings.

Schnitzer Steel ( SCHN ) reported Q3 adjusted EPS of $2.59 on revenues of ~$1B .

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