- Schnitzer Steel Industries ( NASDAQ: SCHN ) expects net loss in the range of $18M-$20M for first quarter of fiscal 2023 .
- Adjusted diluted loss per share from continuing operations is estimated at $0.44-$0.49, with adjusted EBITDA seen at $6M-$8M.
- The result sreflect an estimated adverse impact of ~$18M from extended operational disruptions at the Everett and Oakland metals recycling facilities that were resolved in November.
- Demand weakened throughout the quarter, influenced by macro concerns globally, including slower growth, the impact of China’s COVID lockdowns, inflationary pressures, the strength of the U.S. Dollar, and steel inventory destocking.
- The company expects average net selling prices for ferrous, nonferrous, and finished steel prices to be down sequentially by 12%, 14%, and 9%, respectively. These lower prices led to significantly tighter supply flows and compression of metal spreads.
- Ferrous and nonferrous sales volumes are expected to decline by 33% and 12% sequentially, which includes the impact on supply flows and sales volumes from the disruptions in Everett and Oakland and several ferrous shipments slipping into December.
- The firm expects significant improvement in second quarter results.
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Schnitzer Steel's Q1 results hurt by weak demand, operational disruptions