Schnitzer Reports Second Quarter 2013 Financial Results

  Schnitzer Reports Second Quarter 2013 Financial Results

               Sequential Improvement in Revenues and Earnings

   Continued Momentum on Growth Strategy in Auto Parts and Metals Recycling
                                  Businesses

Business Wire

PORTLAND, Ore. -- April 03, 2013

Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today reported adjusted
earnings per share of $0.36 and earnings per share of $0.32 for its fiscal
2013 second quarter ended February 28, 2013. Adjusted results for the quarter
exclude a $2 million pre-tax restructuring charge associated with cost
reduction initiatives announced in August 2012. Performance exceeded our
second quarter market outlook issued in February due to better than
anticipated operational performance in our Metals Recycling and Auto Parts
Businesses, lower corporate expenses and additional tax benefits. In the first
quarter of 2013, the Company reported an adjusted loss per share of $0.02 and
a loss per share of $0.06.

During the second quarter, ferrous export selling prices strengthened with
average prices for February shipments approximately $40 per ton higher than
average prices for shipments at the end of the first quarter. Higher commodity
prices, together with significant improvements in sales volumes in our Metals
Recycling Business and car purchase volumes in our Auto Parts Business, drove
improved performance sequentially in the second quarter.

                                                               
Summary Results
($ in millions, except per share amounts)
               Quarter
               2Q13        1Q13            Change        2Q12        Change
Revenues       $  662      $  593          12   %         $  887      (25  )%
                                                                           
Operating      $  11       $  1            NM             $  18       (37  )%
Income
Restructuring    2          2           (3   )%         —        NM   
Charges
Adjusted
Operating      $  13       $  3            361  %         $  18       (28  )%
Income^(1)
                                                                           
Net Income
(Loss)         $  9        $  (2     )     NM             $  10       (10  )%
attributable
to SSI
Restructuring
Charges, net     1          1           —    %          —        NM   
of tax
Adjusted Net
Income (Loss)  $  10       $  (1     )     NM             $  10       —    %
attributable
to SSI^(1)
                                                                           
Net Income
(Loss) per
share          $  0.32     $  (0.06  )     NM             $  0.35     (7   )%
attributable
to SSI
Restructuring
Charges, net     0.04       0.04        —    %          —        NM   
of tax, per
share
Adjusted
diluted EPS    $  0.36     $  (0.02  )     NM             $  0.35     3    %
attributable
to SSI^(1)(2)
                                                                      
(1) Adjusted for restructuring charges. See Non-GAAP Financial Measures for
reconciliation to U.S. GAAP.
(2) Second quarter of fiscal 2013 includes tax benefits of $3 million, or
$0.10 per share, relating to the release of a valuation allowance which had
been recorded in the first quarter of fiscal 2013 and other discrete tax
benefits. First quarter of fiscal 2013 includes tax expense of $2 million, or
$0.06 per share, relating to recording the valuation allowance.
NM = Not meaningful
                                                                      

“Our operating performance improved significantly during our second quarter,
led by rising commodity prices, improved volumes in both our Metals Recycling
and Auto Parts Businesses, and the operational efficiencies we have gained
through the implementation of our cost reduction program,” said Tamara
Lundgren, President and Chief Executive Officer. “During the first half of
fiscal 2013, our restructuring initiatives delivered an 11% reduction in SG&A
year over year while we continued to advance our strategic growth initiatives.
In the second quarter, our Auto Parts Business significantly improved its
sequential operating margin to 11% for stores owned more than a year and added
ten new sites which will provide access to additional supply in our core
markets. In our Metals Recycling Business, we completed testing of our new
shredder which will provide increased processing capabilities in Western
Canada during the third quarter of fiscal 2013. Embedded in both growth
initiatives is the opportunity to generate enhanced synergies between our
Metals Recycling and Auto Parts Businesses. As 2013 progresses, we will
continue to focus on delivering improved operational performance, maintaining
our strong balance sheet and optimizing our cost base, while continuing to
pursue our growth strategy.”

Key business drivers during the second quarter of fiscal 2013:

  *Metals Recycling Business (MRB) generated operating income per ferrous ton
    of approximately $13, an increase of 117% from the first quarter of fiscal
    2013, due to a combination of higher selling prices and sales volume for
    both ferrous and nonferrous products.
  *Auto Parts Business (APB) improved its operating income margin from the
    first quarter, excluding the adverse impact related to the new sites added
    during the quarter which include transaction, integration and startup
    costs. In addition, APB increased its car purchase volume to 88 thousand
    cars, reflecting an 11% sequential increase which includes a partial
    quarter contribution from new sites.
  *Steel Manufacturing Business (SMB) generated $1 million in operating
    income on sequentially lower selling volumes, primarily due to the typical
    seasonal slowdown in demand during the second quarter.

Metals Recycling Business

Summary of Metals Recycling Business Results
($ in millions, except selling prices; Fe volumes 000s long tons; NFe volumes
M lbs)
                                                            
                          Quarter
                          2Q13        1Q13       Change     2Q12        Change
Total Revenues            $ 576       $ 494      17   %     $ 782       (26 )%
                                                                        
Ferrous Revenues          $ 443       $ 370      20   %     $ 613       (28 )%
Ferrous Volumes             1,103       955      16   %       1,353     (18 )%
Avg. Net Ferrous
Sales Prices              $ 372       $ 358      4    %     $ 421       (12 )%
($/LT)^(1)
                                                                        
Nonferrous Revenues       $ 125       $ 117      7    %     $ 159       (21 )%
Nonferrous Volumes          126         119      6    %       169       (26 )%
Avg. Net Nonferrous
Sales Prices              $ 0.97      $ 0.95     2    %     $ 0.91      7   %
($/lb)^(1)
                                                                        
Operating                 $ 14        $ 6        150  %     $ 20        (29 )%
Income^(2)
                                                                        
(1) Sales prices are shown net of freight
(2) Operating income does not include the impact of restructuring charges
                                                                        

Sales Volumes: Ferrous sales volumes of 1.1 million tons in the second quarter
increased 16% from first quarter levels, primarily due to higher demand in the
export markets and the timing of sales. Nonferrous sales volumes of 126
million pounds increased 6% sequentially, primarily due to the impact of
higher production levels and the timing of sales.

Export customers accounted for 76% of total ferrous sales volumes in the
second quarter. Our ferrous and nonferrous products were shipped to 14
countries, with Turkey, China and South Korea being the top ferrous export
destinations.

Pricing: Demand strengthened in the export markets for February shipments,
resulting in a 4% increase in average net ferrous selling prices from first
quarter levels. Nonferrous prices were in line with the prior quarter.

Margins: Operating income per ferrous ton was $13, a sequential increase of $7
per ton, or 117%, due to a combination of higher ferrous export selling prices
and sales volumes and the timing of sales. The supply of scrap continued to be
constrained by low US GDP growth which moderated the overall improvement to
margins.

Auto Parts Business

Summary of Auto Parts Business Results
($ in millions)
                Quarter
                     2Q13     1Q13     Change     2Q12     Change
Revenues             $ 78         $ 70         12  %          $ 78         —   %
Operating            $ 7          $ 6          5   %          $ 9          (23 )%
Income^(1)
                                                                           
Car
Purchases              88           79         11  %            84         5   %
Volumes
(000s)
Locations
(end of                59           51         16  %            51         16  %
quarter)
                                                                           
(1) Operating income does not include the impact of restructuring charges
                                                                           

Revenues: Revenues in the second quarter increased 12% sequentially due to
higher commodity prices and higher sales volumes.

Margins: During the second quarter, operating margins, excluding the impact of
new sites, increased sequentially to 11% primarily due to the impact of higher
commodity prices on scrap sales, higher car purchase volumes and lower SG&A
costs. During the second quarter, APB incurred $2 million of operating losses,
including transaction, integration and startup costs, related to the new sites
added during the quarter which lowered APB's reported operating margin to 9%.
See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.

New Sites: During the second quarter, APB invested in ten new sites through a
combination of acquisitions and greenfield developments which, in the
aggregate, will increase the number of our total stores by 20% and are
expected to increase annualized car purchase volumes by approximately 15%.
These new sites will expand APB's position in our core markets and further
enhance operational synergies with our Metals Recycling Business.

Steel Manufacturing Business

Summary of Steel Manufacturing Business Results
($ in millions, except selling prices; volume in thousands of
short tons)
                                                     
                     Quarter
                     2Q13         1Q13         Change         2Q12         Change
Revenues             $ 71         $ 92         (23) %         $ 85         (16) %
Operating                                                     $
Income               $ 1          $ 3          (69) %         (1)          NM
(Loss)
                                                                           
Avg. Net
Sales                $            $            1    %         $            (5)  %
Prices               690          680                         725
($/ST)
Finished
Goods                96           130          (26) %         112          (15) %
Sales
Volumes
                                                                           
NM = Not
meaningful
                                                                           

Sales Volumes: Finished steel sales volumes of 96 thousand tons decreased 26%
from the first quarter of fiscal 2013.

Pricing: Average net sales prices for finished steel products of $690 per
short ton approximated the first quarter.

Margins: Compared to the first quarter, higher costs for raw materials, a
lower utilization rate resulting from planned maintenance and a typical
seasonal slowdown in demand during the quarter resulted in operating income of
$1million.

Cost Reductions

During the first half of fiscal 2013, SG&A was 11% lower as compared to the
prior year. In August we announced cost reduction initiatives which are
expected to lower annual pre-tax operating costs by $25 million and are
anticipated to be substantially implemented by the end of fiscal 2013. Total
pre-tax restructuring charges are expected to be approximately $13 million.
During the second quarter, we incurred a $2 million expense related to the
restructuring charge. In aggregate, we have incurred $8 million of the total
$13 million anticipated restructuring charge, and we expect to recognize the
balance during the remainder of fiscal 2013.

Corporate Items

Corporate expense in the second quarter was $2 million lower sequentially due
to cost reduction initiatives and lower professional fees.

Operating results in the second quarter include a $2 million pre-tax
restructuring charge associated with cost reduction initiatives announced in
August 2012 which equates to $0.04 per share.

Income tax expense in the second quarter included the release of a valuation
allowance on deferred tax assets of a foreign subsidiary of approximately $2
million, which had been recorded in the first quarter. In addition, we had $1
million in other discrete tax benefits. In aggregate, tax benefits in the
second quarter equated to $0.10 per share.

Total debt at period end increased by $66 million, compared to the fourth
quarter of fiscal 2012, to $401 million, primarily reflecting the newly
acquired APB sites and higher working capital.

Analysts' Conference Call: Second Quarter of Fiscal 2013

A conference call and slide presentation to discuss results will be held
today, April 3, 2013, at 11:30 a.m. EDT hosted by Tamara Lundgren, President
and Chief Executive Officer, and Richard Peach, Chief Financial Officer. The
call and the slides will be webcast and accessible on the Company's website at
www.schnitzersteel.com.

Summary financial data is provided in the following pages. The slides and
related materials will be available prior to the call on the website.


SCHNITZER STEEL INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
(in thousands)
(Unaudited)
                                                                         
                    For the Three Months Ended                      For the Six Months Ended
                     February        November        February        February 28,      February 29,
                     28,             30,             29,
                    2013            2012            2012            2013            2012
                                                                                       
REVENUES:
                                                                                       
Metal Recycling
Business:
      Ferrous        $ 443,418       $ 370,476       $ 612,603       $ 813,894         $ 1,190,627
      sales
      Nonferrous     125,255         116,601         158,997         241,856           301,287
      sales
      Other         7,518          7,384          10,333         14,902         18,457      
      sales
      TOTAL MRB      576,191         494,461         781,933         1,070,652         1,510,371
      SALES
                                                                                       
Auto Parts           78,082          69,555          78,232          147,637           162,285
Business
Steel
Manufacturing        71,247          92,029          84,523          163,276           164,424
Business
Intercompany
sales and            (63,310   )     (63,225   )     (58,076   )     (126,535    )   (138,293    )
eliminations
      Total          $ 662,210       $ 592,820       $ 886,612       $ 1,255,030       $ 1,698,787
      Revenues
                                                                                       
                                                                                       
OPERATING
INCOME:
Metal Recycling      $ 14,158        $ 5,654         $ 19,952        $ 19,812          $ 33,051
Business
Auto Parts           6,711           6,364           8,708           13,075            19,150
Business
Steel
Manufacturing        1,041          3,404          (868      )     4,445          349         
Business
      Segment
      operating      21,910          15,422          27,792          37,332            52,550
      income^(1)
                                                                                       
Corporate            (8,942    )     (11,144   )     (9,589    )     (19,935     )     (19,885     )
expense
Intercompany         (38       )     (1,472    )     (216      )     (1,660      )   290         
eliminations
      Adjusted
      operating      12,930         2,806          17,987         15,737         32,955      
      income
                                                                                       
Restructuring        (1,540    )     (1,593    )     —              (3,133      )   —           
charges
      Total
      operating      $ 11,390       $ 1,213        $ 17,987       $ 12,604       $ 32,955    
      income
      
(1) Segment operating income does not include the impact of restructuring charges.



SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
                                                              
                   For the Three Months Ended                      For the Six Months Ended
                   February      November      February        February 28,    February 29,
                   28,             30,             29,
                   2013            2012            2012            2013            2012
Revenues           $ 662,210       $ 592,820       $ 886,612       $ 1,255,030       $ 1,698,787
Cost of goods      600,786         541,884         817,087         1,142,670         1,559,303
sold
Selling,
general and        48,760          47,995          52,370          96,754            108,362
administrative
Loss (Income)
from joint         (266      )     135             (832      )     (131        )     (1,833      )
ventures
Restructuring      1,540          1,593          —              3,133          —           
charges
Operating          11,390          1,213           17,987          12,604            32,955
income
Interest           (2,354    )     (2,017    )     (3,472    )     (4,371      )     (6,743      )
expense
Other income       (49       )     321            617            271            223         
(expense), net
Income (loss)
before income      8,987           (483      )     15,132          8,504             26,435
taxes
Income tax         (244      )     (960      )     (4,767    )     (1,205      )   (8,328      )
expense
Net income         8,743           (1,443    )     10,365          7,299             18,107
(loss)
Net income
attributable
to                 (100      )     (228      )     (735      )     (329        )   (1,462      )
noncontrolling
interests
Net income
(loss)             $ 8,643        $ (1,671  )     $ 9,630        $ 6,970        $ 16,645    
attributable
to SSI
                                                                                     
Income (loss)
per share          $ 0.32          $ (0.06   )     $ 0.35          $ 0.26            $ 0.61
attributable
to SSI - basic
Income (loss)
per share
attributable       $ 0.32          $ (0.06   )     $ 0.35          $ 0.26            $ 0.60
to SSI -
diluted
                                                                                     
Weighted
average number
of common
shares:
Basic              26,640          26,567          27,509          26,597            27,480
Diluted            26,781          26,567          27,781          26,751            27,734
Dividends
declared per       $ 0.188         $ 0.188         $ 0.017         $ 0.376           $ 0.034
common share
                                                                                                 


SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)
                                                                                                        
                                          Fiscal YTD                                                              Fiscal
                1Q13       2Q13         1H13            1Q12         2Q12         3Q12         4Q12         2012
Metals
Recycling
Business
Ferrous
Selling
Prices ($/LT)
^(1)
Domestic        $  354      $   363       $   358         $   420       $   424       $   414       $   357       $   406
Exports         360       374         368            436         420         427         384         417
Average         $  358      $   372       $   365         $   432       $   421       $   424       $   378       $   415
                                                                                                                  
Ferrous Sales
Volume (LT)
Domestic        279,450     260,509       539,959         319,451       297,142       308,521       261,747       1,186,861
Export          675,212   842,509     1,517,722      912,939     1,055,237   1,044,063   915,927     3,928,166
Total           954,662     1,103,018     2,057,681       1,232,390     1,352,379     1,352,584     1,177,674     5,115,027
                                                                                                                  
Nonferrous
Average Price   $  0.95     $   0.97      $   0.96        $   1.00      $   0.91      $   0.97      $   0.90      $   0.94
($/LB) ^(1)
                                                                                                                  
Nonferrous
Sales Volume    118,931     125,500       244,432         137,243       168,545       154,071       168,794       628,652
(LB, in 000s)
                                                                                                                  
Steel
Manufacturing
Business
Sales Prices
($/ST) ^(1)
(2)
Average         $  680      $   690       $   684         $   722       $   725       $   734       $   685       $   715
                                                                                                                  
Sales Volume
(ST) ^(2)
Rebar           78,159      58,132        136,291         62,487        51,141        55,378        74,797        243,803
Coiled          45,533      32,130        77,663          39,120        55,785        42,753        45,103        182,761
Products
Merchant Bar    5,926     5,355       11,281         5,030       5,097       4,812       5,837       20,776
and Other
Total           129,618     95,617        225,235         106,637       112,023       102,943       125,737       447,340
                                                                                                                  
Auto Parts
Business
Car purchase    79          88            167             85            84            89            81            339
volumes (000)
Number of
self-service
locations at    51          59            59              50            51            51            51            51
end of
quarter
                                                                                                                  
(1) Price information is shown after a reduction for the cost of freight incurred to deliver the product to the customer
(2) Excludes billet sales



SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                February 28, 2013      August 31, 2012
Assets
Current Assets:
Cash and cash equivalents          $   34,540                  $   89,863
Accounts receivable, net           159,055                     137,313
Inventories, net                   305,454                     246,992
Other current assets               45,948                     42,651
Total current assets               544,997                     516,819
                                                               
Property, plant and                566,890                     564,185
equipment, net
                                                               
Goodwill and other assets          695,543                    682,569
Total assets                       $   1,807,430              $   1,763,573
                                                               
Liabilities and Equity
Current liabilities:
Short-term borrowings              $   669                     $   683
Other current liabilities          157,506                    178,159
Total current liabilities          158,175                     178,842
                                                               
Long-term debt                     400,720                     334,629
                                                               
Other long-term liabilities        145,143                     142,158
                                                               
Redeemable noncontrolling          24,760                      22,248
interest
                                                               
Equity:
Total Schnitzer Steel
Industries, Inc. ("SSI")           1,073,289                   1,080,583
shareholders' equity
Noncontrolling interests           5,343                      5,113
Total equity                       1,078,632                  1,085,696
Total liabilities and equity       $   1,807,430              $   1,763,573
                                                                   

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined
under SEC rules such as adjusted operating income, adjusted net income (loss)
attributable to SSI, adjusted diluted earnings per share attributable to SSI
and operating income margin for APB stores owned more than a year. As required
by SEC rules, the Company has provided reconciliations of these measures to
the most directly comparable U.S. GAAP measures. Management believes that each
of the foregoing adjusted non-GAAP financial measures provides a meaningful
presentation of the Company's results from its core business operations
excluding adjustments for restructuring charges that are not related to the
Company's ongoing core business operations and improves the period-to-period
comparability of the Company's results from its core business operations. In
addition, management believes that the non-GAAP financial measure relating to
the Auto Parts Business new stores impact provides a meaningful presentation
of the operating segment's results by excluding operating results relating to
newly added stores and thus improve period-to-period comparability of the
results of the segment's core business. These non-GAAP financial measures
should be considered in addition to, but not as a substitute for, the most
directly comparable U.S.GAAP measures.


Consolidated Operating Income
($ in millions)                  Quarter
                                         2Q13        1Q13         2Q12
Operating Income                         $ 11           $ 1             $ 18
Restructuring Charges                    2             2              —
Adjusted Operating                       $ 13           $ 3             $ 18
Income

Net Income (Loss) attributable to SSI
($ in millions)                          Quarter
                                         2Q13           1Q13            2Q12
Net Income (Loss)                        $ 9            $ (2    )       $ 10
attributable to SSI
Restructuring Charges,                   1             1              —
net of tax
Adjusted Net Income
(Loss) attributable to                   $ 10           $ (1    )       $ 10
SSI

Diluted Earnings per share attributable to SSI
($ per share)                            Quarter
                                         2Q13           1Q13            2Q12
Net Income (Loss) per
share attributable to                    $ 0.32         $ (0.06 )       $ 0.35
SSI
Restructuring Charges,                   0.04          0.04           —
net of tax, per share
Adjusted Diluted EPS                     $ 0.36         $ (0.02 )       $ 0.35
attributable to SSI

                                                              
Auto Parts Business New Stores Impact
($ in millions)       2Q13
                      Existing Stores^(1)        New Stores^(2)    Reported
Revenues              $       75                  $     3            $  78
Operating Income      8                           (2          )      7
(Loss)^(3)
Operating Income      11               %          NM                 9      %
Margin
Car Purchase Volumes  84                          4                  88
(000)
(1) Existing Stores represents APB operations for stores owned one year or
more.
(2) New Stores represent new acquisitions, or greenfield development, owned
less than one year.
(3) Does not foot due to rounding.
NM = Not meaningful
                                                              

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and
exporters of recycled ferrous metal products in the United States with 58
operating facilities located in 14 states, Puerto Rico and Western Canada. The
business has seven deep water export facilities located on both the East and
West Coasts and in Hawaii and Puerto Rico. The Company's integrated operating
platform also includes its auto parts and steel manufacturing businesses. The
Company's auto parts business sells used auto parts through its 59
self-service facilities located in 16 states and Western Canada. With an
effective annual production capacity of approximately 800,000 tons, the
Company's steel manufacturing business produces finished steel products,
including rebar, wire rod and other specialty products. The Company commenced
its 107^th year of operations in 2013.

Safe Harbor for Forward-Looking Statements

Statements and information included in this press release that are not purely
historical are forward-looking statements within the meaning of Section21E of
the Securities Exchange Act of 1934 and are made pursuant to the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995. Except as
noted herein or as the context may otherwise require, all references to “we,”
“our,” “us” and “SSI” refer to the Company and its consolidated subsidiaries.

Forward-looking statements in this press release include statements regarding
our expectations, intentions, beliefs and strategies regarding the future,
including statements regarding trends, cyclicality and changes in the markets
we sell into; strategic direction; changes to manufacturing and production
processes; the cost of compliance with environmental and other laws; expected
tax rates, deductions and credits; the realization of deferred tax assets;
planned capital expenditures; liquidity positions; ability to generate cash
from operations; the potential impact of adopting new accounting
pronouncements; expected results, including pricing, sales volumes and
profitability; obligations under our retirement plans; savings or additional
costs from business realignment and cost containment programs; and the
adequacy of accruals.

When used in this report, the words “believes,” “expects,” “anticipates,”
“intends,” “assumes,” “estimates,” “evaluates,” “may,” “could,” “opinions,”
“forecasts,” “future,” “forward,” “potential,” “probable,” “plan,” and similar
expressions are intended to identify forward-looking statements.

We may make other forward-looking statements from time to time, including in
reports filed with the Securities and Exchange Commission, press releases and
public conference calls. All forward-looking statements we make are based on
information available to us at the time the statements are made, and we assume
no obligation to update any forward-looking statements, except as may be
required by law. Our business is subject to the effects of changes in domestic
and global economic conditions and a number of other risks and uncertainties
that could cause actual results to differ materially from those included in,
or implied by, such forward-looking statements. Some of these risks and
uncertainties are discussed in "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in our most recent
annual report on Form 10-K and quarterly report on Form 10-Q. Examples of
these risks include: potential environmental cleanup costs related to the
Portland Harbor Superfund site; the impact of general economic conditions;
volatile supply and demand conditions affecting prices and volumes in the
markets for both our products and raw materials we purchase; difficulties
associated with acquisitions and integration of acquired businesses; the
impact of goodwill impairment charges; the realization of expected cost
reductions related to restructuring initiatives; the inability of customers to
fulfill their contractual obligations; the impact of foreign currency
fluctuations; potential limitations on our ability to access capital resources
and existing credit facilities; restrictions on our business and financial
covenants under our bank credit agreement; the impact of the consolidation in
the steel industry; the impact of imports of foreign steel into the U.S.;
inability to realize expected benefits from investments in technology; freight
rates and availability of transportation; product liability claims; costs
associated with compliance with environmental regulations; the adverse impact
of climate change; inability to obtain or renew business licenses and permits;
compliance with greenhouse gas emission regulations; reliance on employees
subject to collective bargaining agreements; and the impact of the underfunded
status of multiemployer plans in which we participate.

Contact:

Schnitzer Steel Industries, Inc.
Investor Relations:
Alexandra Deignan, 646-278-9711
adeignan@schn.com
or
Media Relations:
Chip Terhune, 503-265-6370
cterhune@schn.com
Company Info:
www.schnitzersteel.com
ir@schn.com