Schnitzer Reports Third Quarter 2013 Financial Results

  Schnitzer Reports Third Quarter 2013 Financial Results

    Higher Volumes in all Businesses and Continued Expansion of Auto Parts
                                   Business

Business Wire

PORTLAND, Ore. -- June 27, 2013

Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) today reported adjusted
earnings per share of $0.09 and earnings per share of $0.03 for its fiscal
2013 third quarter ended May 31, 2013. This compares to adjusted earnings per
share of $0.36 and earnings per share of $0.32 in the second quarter of 2013.
Adjusted results for the third quarter exclude a $2 million, or $0.06 per
share, restructuring charge associated with cost reduction initiatives
announced in August 2012. Third quarter results were adversely impacted by
average inventory accounting which significantly reduced operating income in
our Metals Recycling Business by approximately $10 million, or $9 per ton, as
compared to the second quarter. The Company's results in the second quarter
included $0.10 per share of discrete tax benefits. The Company generated $45
million in operating cash flow during the third quarter and our total debt to
total capital ratio at the end of the third quarter approximated the second
quarter.

Ferrous export selling prices declined steadily throughout the third quarter,
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. The combination of declining selling prices, constrained supply,
adverse impacts of average inventory accounting and lower tax benefits
resulted in sequentially lower consolidated net income.

Subsequent to the third quarter, we acquired our first Auto Parts store in
Rhode Island which is located near our existing Metals Recycling facilities.
This new store adds to our supply chain in the Northeast, increasing our
combined regional presence to 16 facilities.

 Summary                                                         
  Results
  ($ in
  millions,
  except per
  share amounts)
                                                                        
                    Quarter                                                 
                    3Q13           2Q13           Change     3Q12       Change
  Revenues          $  710         $  662         7    %     $ 880      (19 )%
                                                                        
  Operating         $  7           $  11          (37  )%    $ 22       (67 )%
  Income
  Restructuring     2             2             22   %     —         NM
  Charges
  Adjusted
  Operating         $  9           $  13          (30  )%    $ 22       (59 )%
  Income^(1)
                                                                        
  Net Income
  attributable      $  1           $  9           (91  )%    $ 11       (93 )%
  to SSI
  Restructuring
  Charges, net      1             1             49   %     —         NM
  of tax
  Adjusted Net
  Income            $  2           $  10          (76  )%    $ 11       (79 )%
  attributable
  to SSI^(1)
                                                                        
  Net Income per
  share             $  0.03        $  0.32        (91  )%    $ 0.40     (92 )%
  attributable
  to SSI
  Restructuring
  Charges, net      0.06          0.04          50   %     —         NM
  of tax, per
  share
  Adjusted
  diluted EPS       $  0.09        $  0.36        (75  )%    $ 0.40     (78 )%
  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 included 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.
  NM = Not meaningful

“During the third quarter we achieved higher sales volumes in each of our
businesses despite weaker market conditions. Operating income in our Metals
Recycling Business was negatively impacted by the significant drop in ferrous
selling prices which fell more quickly than purchase prices and offset some of
the benefits from the increased volumes. Our major capital projects for fiscal
2013 in Canada and Puerto Rico continue to progress on schedule. In our Auto
Parts Business, seasonal trends contributed to improved sequential results for
stores owned more than one year and the integration of our 11 new sites added
this fiscal year are on track. In our Steel Manufacturing Business, higher
sales volumes reflected, in part, a market environment that is improving,"
said Tamara Lundgren, President and Chief Executive Officer. "We generated
positive operating cash flow this quarter which enabled us to continue our
growth investments and capital allocation priorities while maintaining a
healthy balance sheet."

Key business drivers during the third quarter of fiscal 2013:

  *Metals Recycling Business (MRB) generated operating income per ferrous ton
    of approximately $8, which included an adverse impact from average
    inventory costs of $9 per ton, as compared to the second quarter. Ferrous
    volumes increased 6% and nonferrous volumes increased 8% sequentially from
    the second quarter.
  *Auto Parts Business (APB) operating income margin of 12%, excluding new
    sites added in fiscal 2013, reflected seasonally higher parts sales. APB
    increased its car purchase volumes 3% sequentially, excluding the
    contribution from new stores in fiscal 2013.
  *Steel Manufacturing Business (SMB) selling volumes increased 31% from the
    second quarter, primarily due to normal seasonal improvements in demand in
    the third quarter. Operating results were break-even in the third 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                                    
                                 3Q13     2Q13     Change  3Q12      Change
  Total Revenues                 $ 605     $ 576     5   %    $ 787     (23 )%
                                                                        
  Ferrous Revenues               $ 465     $ 443     5   %    $ 622     (25 )%
  Ferrous Volumes                1,164     1,103     6   %    1,353     (14 )%
  Avg. Net Ferrous Sales         $ 367     $ 372     (1  )%   $ 424     (13 )%
  Prices ($/LT)^(1)
                                                                        
  Nonferrous Revenues            $ 131     $ 125     4   %    $ 155     (16 )%
  Nonferrous Volumes             135       126       8   %    154       (12 )%
  Avg. Net Nonferrous Sales      $ 0.94    $ 0.97    (3  )%   $ 0.97    (3  )%
  Prices ($/lb)^(1)
                                                                        
  Operating Income^(2)           $ 9       $ 14      (38 )%   $ 18      (51 )%
                                                                        
  (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 1.2 million tons in the third quarter
increased 6% sequentially due to stronger domestic volumes and the timing of
shipments. Nonferrous sales volumes of 135 million pounds increased 8%,
primarily due to higher production levels and inventory draw down to satisfy
customer demand.

Export customers accounted for 73% of total ferrous sales volumes in the third
quarter. Our ferrous and nonferrous products were shipped to 13 countries,
with China, Turkey and Malaysia being the top ferrous export destinations.

Pricing: Export prices declined steadily throughout the quarter as demand
moderated. Higher priced sales orders before the market dropped resulted in
average net ferrous selling prices which approximated second quarter levels.
Nonferrous prices averaged slightly lower than the prior quarter.

Margins: Operating income per ferrous ton was $8, which included a significant
adverse impact from average inventory costs of $9 per ton as compared to the
second quarter. In the declining selling price environment, average inventory
costs did not decline as quickly as cash purchase costs for raw materials,
resulting in margin compression. Absent the impact from average inventory
accounting, operating income per ferrous ton was in line with the second
quarter.

Auto Parts Business

 Summary of Auto Parts Business Results                              
  ($ in millions)
                                                                        
                            Quarter
                            3Q13       2Q13      Change    3Q12      Change
  Revenues                  $   86      $  78      11%        $  83     4%
  Operating Income^(1)      $   8       $  7       23%        $  13     (34)%
                                                                        
  Car Purchase Volumes      95          88         8%         89        7%
  (000s)
  Locations (end of         61          59         3%         51        20%
  quarter)
                                                                        
  (1) Operating income does not include the impact of restructuring
  charges

Revenues: Revenues in the third quarter increased 11% sequentially due to
seasonally stronger admissions and part sales and the incremental
contributions from acquisitions.

Margins: During the third quarter, operating margins, excluding the impact of
new sites, increased sequentially to 12%, due in part to the impact of normal
seasonal improvements in part sales. During the third quarter, APB incurred $1
million of operating losses related to the new sites added during fiscal 2013,
including integration and startup costs, which lowered APB's reported
operating margin to 10%. (See Non-GAAP Financial Measures for reconciliation
to U.S. GAAP.)

New Sites: Subsequent to the third quarter, APB acquired its first store in
Rhode Island. This location is near our Metals Recycling facilities and will
expand APB's presence in our core Northeastern market 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 000s of short tons)
                                                                      
                                Quarter
                                3Q13      2Q13    Change  3Q12     Change
  Revenues                      $  93      $ 71     30%      $ 79     18%
  Operating Income (Loss)       $  —       $ 1      NM       $ —      NM
                                                                      
  Avg. Net Sales Prices ($/ST)  $  687     $ 690    —%       $ 734    (6)%
  Finished Goods Sales Volumes  125        96       31%      103      21%
                                                                      
  NM = Not meaningful

Sales Volumes: Finished steel sales volumes of 125 thousand tons increased 31%
from the second quarter of fiscal 2013 due to seasonal improvements in demand.

Pricing: Average net sales prices for finished steel products of $687 per
short ton approximated the second quarter.

Margins: Operating results during the quarter approximated break-even levels.
The decline in margins compared to the second quarter was due primarily to the
impact on costs of goods sold from lower utilization levels as customer demand
was partially met with inventories produced during the second quarter.

Cost Reductions

During the first nine months of fiscal 2013, SG&A was lower by 10%, or $16
million, as compared to the prior year, excluding the $3 million impact from
new APB acquisitions. Our cost reduction initiatives announced in August 2012
are on track to lower annual pre-tax operating costs by $25 million and are
anticipated to be substantially implemented by the end of fiscal 2013. During
the third quarter, we incurred a $2 million expense related to the
restructuring charge, which equates to $0.06 per share. In aggregate, we have
incurred $10 million of the total $14 million anticipated pre-tax
restructuring charge in fiscal 2013. During the fourth quarter of fiscal 2013,
the balance of the restructuring charges will primarily reflect costs of
consolidating administrative functions in a single headquarters location.

Corporate Items

The Company's full year tax rate for fiscal 2013 is anticipated to be
approximately 35%. The tax rate in the third quarter was higher than the
anticipated full year rate due to changes to projected pre-tax income from
domestic and foreign operations.

The Company generated $45 million in operating cash flow during the third
quarter from a combination of positive earnings and lower working capital. In
the second quarter, the Company generated operating cash flow of $16 million.
Total debt of $414 million at the end of the third quarter approximated the
level at the end of the second quarter.

Analysts' Conference Call: Second Quarter of Fiscal 2013

A conference call and slide presentation to discuss results will be held
today, June 27, 2013, at 10:00 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 Nine Months Ended
               May 31,       February      May 31,       May 31, 2013   May 31, 2012
                2013          28, 2013      2012
                                                                          
REVENUES:
                                                                          
Metal
Recycling
Business:
   Ferrous      $ 465,194     $ 443,418     $ 621,923     $ 1,279,088     $ 1,812,550
   sales
   Nonferrous   130,600       125,255       155,265       372,456         456,552
   sales
   Other       9,076        7,518        9,339        23,977        27,796      
   sales
   TOTAL MRB    604,870       576,191       786,527       1,675,521       2,296,898
   SALES
                                                                          
Auto Parts      86,439        78,082        82,936        234,075         245,222
Business
Steel
Manufacturing   92,943        71,247        78,623        256,219         243,048
Business
Intercompany
sales and       (73,957   )   (63,310   )   (68,221   )   (200,490    )  (206,515    )
eliminations
   Total        $ 710,295     $ 662,210     $ 879,865     $ 1,965,325     $ 2,578,653
   Revenues
                                                                          
                                                                          
OPERATING
INCOME
(LOSS):
Metal
Recycling       $ 8,789       $ 14,158      $ 17,817      $ 28,602        $ 50,868
Business
Auto Parts      8,273         6,711         12,543        21,348          31,693
Business
Steel
Manufacturing   (72       )   1,041        253          4,373         602         
Business
   Segment
   operating    16,990        21,910        30,613        54,323          83,163
   income^(1)
                                                                          
Corporate       (8,625    )   (8,942    )   (8,751    )   (28,563     )   (28,635     )
expense
Intercompany    695           (38       )   216           (963        )   506
eliminations
                                                                     
   Adjusted
   operating    9,060        12,930       22,078       24,797        55,034      
   income^(2)
                                                                          
Restructuring   (1,873    )   (1,540    )   —            (5,006      )  —           
charges
   Total
   operating    $ 7,187      $ 11,390     $ 22,078     $ 19,791      $ 55,034    
   income
   
(1) Segment operating income does not include the impact of restructuring charges.
(2) Adjusted for restructuring charges. See Non-GAAP Financial Measures for
reconciliation to U.S. GAAP.


SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands)
(Unaudited)
                                                        
                 For the Three Months Ended                For the Nine Months Ended
                 May 31,      February     May 31,       May 31, 2013   May 31, 2012
                 2013          28, 2013      2012
Revenues         $ 710,295    $ 662,210    $ 879,865    $ 1,965,325    $ 2,578,653 
Cost of goods    652,263       600,786       807,980       1,794,933       2,367,283
sold
Selling,
general and      49,390        48,760        50,148        146,144         158,510
administrative
Income from      (418      )   (266      )   (341      )   (549        )   (2,174      )
joint ventures
Restructuring    1,873        1,540        —            5,006          —           
charges
Operating        7,187         11,390        22,078        19,791          55,034
income
Interest         (2,788    )   (2,354    )   (2,729    )   (7,159      )   (9,473      )
expense
Other income     141          (49       )   (154      )   414            70          
(expense), net
Income before    4,540         8,987         19,195        13,046          45,631
income taxes
Income tax       (2,986    )   (244      )   (7,541    )   (4,191      )  (15,870     )
expense
Net income       1,554         8,743         11,654        8,855           29,761
Net income
attributable
to               (734      )   (100      )   (413      )   (1,063      )   (1,875      )
noncontrolling
interests
Net income
attributable     $ 820        $ 8,643      $ 11,241     $ 7,792        $ 27,886    
to SSI
                                                                           
Income per
share            $ 0.03        $ 0.32        $ 0.41        $ 0.29          $ 1.01
attributable
to SSI - basic
Income per
share
attributable     $ 0.03        $ 0.32        $ 0.40        $ 0.29          $ 1.00
to SSI -
diluted
                                                                           
Weighted
average number
of common
shares:
Basic            26,671        26,640        27,531        26,629          27,499
Diluted          26,813        26,781        27,795        26,777          27,748
Dividends
declared per     $ 0.188       $ 0.188       $ 0.188       $ 0.563         $ 0.222
common share
                                                                                       

SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)
                                                 Fiscal                                                       Fiscal
                1Q13      2Q13        3Q13        YTD           1Q12        2Q12        3Q12        4Q12        2012
Metals
Recycling
Business
Ferrous
Selling
Prices ($/LT)
^(1)
Domestic        $  354    $   363     $   367     $   362       $   420     $   424     $   414     $   357     $   406
Exports         360      374        367        368          436        420        427        384        417
Average         $  358    $   372     $   367     $   366       $   432     $   421     $   424     $   378     $   415
                                                                                                                
Ferrous Sales
Volume (LT)
Domestic        279,450   260,509     314,240     854,199       319,451     297,142     308,521     261,747     1,186,861
Export          675,212  842,509    849,991    2,367,713    912,939    1,055,237  1,044,063  915,927    3,928,166
Total           954,662   1,103,018   1,164,231   3,221,912     1,232,390   1,352,379   1,352,584   1,177,674   5,115,027
                                                                                                                
Nonferrous
Average Price   $  0.95   $   0.97    $   0.94    $   0.95      $   1.00    $   0.91    $   0.97    $   0.90    $   0.94
($/LB) ^(1)
                                                                                                                
Nonferrous
Sales Volume    118,931   125,500     135,256     379,688       137,243     168,545     154,071     168,794     628,652
(LB, in 000s)
                                                                                                                
Steel
Manufacturing
Business
Sales Prices
($/ST) ^(1)
(2)
Average         $  680    $   690     $   687     $   685       $   722     $   725     $   734     $   685     $   715
                                                                                                                
Sales Volume
(ST) ^ (2)
Rebar           78,159    58,132      71,561      207,852       62,487      51,141      55,378      74,797      243,803
Coiled          45,533    32,130      46,088      123,751       39,120      55,785      42,753      45,103      182,761
Products
Merchant Bar    5,926    5,355      7,358      18,639       5,030      5,097      4,812      5,837      20,776
and Other
Total           129,618   95,617      125,007     350,242       106,637     112,023     102,943     125,737     447,340
                                                                                                                
Auto Parts
Business
Car purchase    79        88          95          262           85          84          89          81          339
volumes (000)
Number of
self-service
locations at    51        59          61          61            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)

                                              May 31, 2013   August 31, 2012
Assets
Current Assets:
Cash and cash equivalents                      $ 37,078        $   89,863
Accounts receivable, net                       161,808         137,313
Inventories, net                               295,678         246,992
Other current assets                           40,949         42,651
Total current assets                           535,513         516,819
                                                               
Property, plant and equipment, net             569,219         564,185
                                                               
Goodwill and other assets                      693,041         682,569
                                                              
Total assets                                   $ 1,797,773    $   1,763,573
                                                               
Liabilities and Equity
Current liabilities:
Short-term borrowings                          $ 693           $   683
Other current liabilities                      161,425        178,159
Total current liabilities                      162,118         178,842
                                                               
Long-term debt                                 413,401         334,629
                                                               
Other long-term liabilities                    146,644         142,158
                                                               
Redeemable noncontrolling interest             —               22,248
                                                               
Equity:
Total Schnitzer Steel Industries, Inc.         1,070,274       1,080,583
("SSI") shareholders' equity
Noncontrolling interests                       5,336          5,113
Total equity                                   1,075,610      1,085,696
Total liabilities and equity                   $ 1,797,773    $   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
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
                                                 3Q13      2Q13       3Q12
Operating Income                                 $ 7        $ 11        $ 22
Restructuring Charges                            2         2          —
Adjusted Operating Income                        $ 9        $ 13        $ 22
                                                                          
Net Income attributable
to SSI
($ in millions)                                  Quarter
                                                 3Q13       2Q13        3Q12
Net Income attributable                          $ 1        $ 9         $ 11
to SSI
Restructuring Charges,                           1         1          —
net of tax
Adjusted Net Income                              $ 2        $ 10        $ 11
attributable to SSI
                                                                          
Diluted Earnings per
share attributable to SSI
($ per share)                                    Quarter
                                                 3Q13       2Q13        3Q12
Net Income per share                             $ 0.03     $ 0.32      $ 0.40
attributable to SSI
Restructuring Charges,                           0.06      0.04       —
net of tax, per share
Adjusted Diluted EPS                             $ 0.09     $ 0.36      $ 0.40
attributable to SSI
                                                                          
Auto Parts Business New
Stores Impact
($ in millions)           3Q13                                              
                          Existing Stores^(1)  New Stores^(2)    Reported
Revenues^(3)              80                    7                  86
Operating Income          10                    (1             )   8
(Loss)^(3)
Operating Income Margin   12         %          NM                 10       %
Car Purchase Volumes      87                    8                  95
(000)
                                                                   
                          2Q13                                              
                          Existing Stores^(1)   New Stores^(2)     Reported
Revenues                  75                    3                  78
Operating Income          8                     (2             )   7
(Loss)^(3)
Operating Income Margin   11         %          NM                 9        %
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 59
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 62
self-service facilities located in 17 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,
which may include 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 continuing 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,” 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
or
Company Info:
www.schnitzersteel.com
ir@schn.com
 
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