Schnitzer Reports Fourth Quarter Fiscal 2013 Financial Results

  Schnitzer Reports Fourth Quarter Fiscal 2013 Financial Results

   Steel Manufacturing Business Reports Best Performance since Fiscal 2008

   Additional Cost Savings and Productivity Improvements Planned for Metals
                      Recycling Business in Fiscal 2014

 Reported Results Include a Non-cash Goodwill Impairment and Other Charges in
                        the Metals Recycling Business

Business Wire

PORTLAND, Ore. -- October 29, 2013

Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today reported an adjusted loss
per share of $(0.51) for the fourth quarter ended August 31, 2013, excluding a
non-cash goodwill impairment charge, other asset impairment charges,
restructuring charges and tax valuation allowances. The Company reported a
loss per share of $(10.82) for the fourth quarter ended August 31, 2013. This
compares with an adjusted earnings per share of $0.11, excluding restructuring
charges, and a reported loss per share of $(0.02) for the fourth quarter of
fiscal 2012. Notwithstanding the significant impact to earnings as a result of
the impairments and other charges, the Company generated positive operating
cash flows of $38 million in the fourth quarter.

Challenging market conditions for recycled ferrous metals resulted in lower
export selling prices and reduced sales volumes as compared to both the third
quarter of fiscal 2013 and the fourth quarter of fiscal 2012. In addition,
purchase prices for raw materials did not decrease as much as selling prices
during the quarter due to constrained supply which contributed to operating
margin compression in both our Metals Recycling and Auto Parts Businesses.

In the fourth quarter, our Metals Recycling Business took a non-cash goodwill
impairment charge of $321 million and other asset impairment charges of $13
million. In the fourth quarter, MRB’s adjusted operating loss of $6 per ton
excludes the non-cash goodwill impairment, other asset impairment charges and
restructuring charges. MRB's adjusted operating income includes an estimated
adverse impact of $12 per ton from a combination of average inventory costing
and other items related to inventory valuations, costs associated with fire
damage at two facilities and a bad debt expense from a customer bankruptcy.

Our Auto Parts Business generated operating margins of 7% in the fourth
quarter, before the impact of new stores opened in fiscal 2013. APB's
operating margin includes an adverse impact of approximately 400 basis points
from average inventory costing. During the fourth quarter, APB incurred $2
million of operating losses related to the new sites added during fiscal 2013
which lowered APB's reported operating margin to 4%.

Our Steel Manufacturing Business reported its best fourth quarter and full
year performance since fiscal 2008, generating $2 million of quarterly
operating income driven largely by slowly improving demand leading to
increased sales volumes and by productivity improvements.

During fiscal 2013, we implemented restructuring initiatives which reduced
annual operating expenses by $25 million. These benefits were more than offset
by the impact of adverse market conditions. In light of continued market
challenges, we are implementing additional cost reduction and productivity
improvement initiatives which are targeted to further reduce our annual
operating expenses by $30 million with approximately 70% expected to benefit
fiscal 2014 performance and the full benefits achieved in fiscal 2015. The
additional savings, which are primarily in our Metals Recycling operations,
are expected to result from a combination of reducing organizational layers,
productivity improvements, procurement savings, internal synergies and other
operating efficiencies. We anticipate incremental restructuring charges of $3
million to be incurred in fiscal 2014.

Consolidated Summary Results
($ in millions, except per share amounts)
                 Quarter                                Year
                  4Q13            3Q13      4Q12        2013        2012
Revenues          $  657           $ 710      $ 762       $ 2,622      $ 3,341
                                                                       
Operating         (348       )     7          (1      )   (328     )   54
Income (Loss)
Goodwill
Impairment        321              —          —           321          —
Charge
Other Asset
Impairment        13               —          —           13           —
Charges
Restructuring     3               2         5          8           5
Charges
Adjusted
Operating         (11        )     9          4           14           59
Income (Loss)
                                                                       
Net Income
(Loss)            (289       )     1          —           (281     )   27
attributable
to SSI
                                                                       
Adjusted Net
Income (Loss)     $  (14     )     $ 2        $ 3         $ (2     )   $ 31
attributable
to SSI^(1)
                                                                       
Net Income
(Loss) per
share             $  (10.82  )     $ 0.03     $ (0.02 )   $ (10.56 )   $ 0.99
attributable
to SSI
                                                                       
Adjusted
diluted EPS       $  (0.51   )     $ 0.09     $ 0.11      $ (0.07  )   $ 1.12
attributable
to SSI^(1)
                                                                       
(1) Includes same adjustments, net of tax, as in adjusted operating income
above as well as a valuation allowance on deferred tax assets of $29 million.
See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.

Tamara Lundgren, President and Chief Executive Officer, commented on the
Company’s results, “While each of our businesses is well positioned to achieve
higher profitability when market conditions improve, this quarter was
negatively impacted by a number of significant items and an adverse impact
from average inventory costs. Notwithstanding the significant impact to
reported earnings, we generated $38 million of operating cash flow in the
fourth quarter and continued to invest in our business and to return capital
to our shareholders through our quarterly dividend.”

Lundgren continued: "In fiscal 2013, we delivered $25 million of savings from
reducing SG&A and production efficiencies which lowered our cost of goods
sold. However, these benefits were offset by the adverse impact of weak market
conditions. In fiscal 2014, we expect to deliver organic growth in each of our
businesses and, in addition, we are targeting $30 million of additional
savings. With our major capital projects completed, we also anticipate
significantly lower capital spending in fiscal 2014.”

Lundgren concluded: “With slowly improving demand for steel driving increased
sales volumes and with the benefits of productivity improvements, SMB
delivered its best performance since fiscal 2008. Our focus in fiscal 2014
will be to continue to deliver cost savings and productivity improvements
throughout the Company and to further leverage the synergies between APB and
MRB, all of which we expect will make our Company stronger in the long-run. We
are very gratified that, in light of the market environment that the Company
is facing, our teams continue to do an unwavering and excellent job in serving
our customers and our communities. It is their commitment to excellence that
was reflected in our selection as “Scrap Company of the Year” by American
Metal Market.”

Metals Recycling Business

Summary of Metals Recycling Business Results
($ in millions, except selling prices; Fe volumes 000s long tons; NFe volumes
M lbs)
                           Quarter                       Year
                            4Q13      3Q13     4Q12      2013       2012
Total Revenues              $ 535     $ 605     $ 652     $ 2,210     $ 2,949
                                                                       
Ferrous Revenues            $ 398      $ 465     $ 485     $ 1,677     $ 2,298
Ferrous Volumes             1,088      1,164     1,178     4,309       5,115
Avg. Net Ferrous Sales      $ 336      $ 367     $ 378     $ 358       $ 415
Prices ($/LT)^(1)
                                                                       
Nonferrous Revenues         $ 129      $ 131     $ 158     $ 502       $ 614
Nonferrous Volumes          141        135       169       520         629
Avg. Net Nonferrous Sales   $ 0.89     $ 0.94    $ 0.90    $ 0.93      $ 0.94
Prices ($/lb)^(1)
                                                                       
Operating Income            $ (340 )   $ 9       $ 13      $ (312  )   $ 64
(Loss)^(2)
Goodwill Impairment         321        —         —         321         —
Asset Impairment Charges    13         —         —         13          —
                                                                       
Adjusted Operating Income   $ (6   )   $ 9       $ 13      $ 23        $ 64
(Loss)^(3)(4)
                                                                       
(1) Sales prices are shown net of freight.
(2) Operating income (loss) does not include the impact of restructuring
charges.
(3) See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
(4) Numbers may not foot due to rounding

Sales Volumes: Ferrous sales volumes of 1.1 million tons in the fourth quarter
decreased 7% from the third quarter, primarily due to softer export demand.
Nonferrous sales volumes of 141 million pounds increased 4% sequentially,
primarily due to benefits from higher production levels and increased
shipments in August.

Export customers accounted for 74% of total ferrous sales volumes in the
fourth quarter. Our ferrous and nonferrous products were shipped to 14
countries, with Turkey, China and South Korea the top export destinations for
ferrous shipments.

Pricing: Demand softened in the export markets in early June, driving average
ferrous net sales prices in the fourth quarter down by $31 per ton, or 8%,
from third quarter levels. Domestic selling prices were also lower
sequentially, however an upward movement mid-quarter resulted in a lower
overall decline as compared to export prices. Nonferrous prices decreased 5%
sequentially in the fourth quarter, primarily due to lower commodity prices.

Margins: Adjusted operating loss per ferrous ton of $6 in the fourth quarter
of fiscal 2013 reflected weaker export market conditions, including an
estimated adverse impact of $12 per ton from a combination of average
inventory costs and other items related to inventory valuations, costs
associated with fire damage at two facilities and a bad debt expense related
to a customer bankruptcy.

Auto Parts Business

Summary of Auto Parts Business Results
($ in millions, except locations)
                                                              
                                Quarter                    Year
                                4Q13       3Q13    4Q12    2013     2012
Revenues                        $  79      $ 86    $ 72    $ 313     $ 317
Operating Income^(1)(2)         $  3       $ 8     $ 2     $ 25      $ 33
                                                                     
Car Purchase Volumes (000s)     94         95      81      356       339
Locations (end of quarter)      61         61      51      61        51

(1) Operating income does not include the impact of restructuring charges.
(2) See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.

Revenues: Revenues in the fourth quarter decreased 8% sequentially resulting
from a decline in commodity prices and seasonally lower admissions and part
sales.

Margins: Operating margins of 7%, before the impact of new stores added in
fiscal 2013, were compressed by lower commodity prices, an estimated adverse
impact of approximately 400 basis points from average inventory costing, and
retail seasonality. During the fourth quarter, APB incurred $2 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 4%. (See Non-GAAP Financial Measures for reconciliation to U.S. GAAP)

Steel Manufacturing Business

Summary of Steel Manufacturing Business Results
($ in millions, except selling prices; volume in thousands of short tons)
                                                              
                               Quarter                     Year
                               4Q13    3Q13    4Q12      2013     2012  
Revenues                       $ 96     $ 93     $ 90      $ 352     $ 333
Operating Income (Loss)        $ 2      $ —      $ (3  )   $ 7       $ (2  )
                                                                     
Avg. Net Sales Prices ($/ST)   $ 667    $ 687    $ 685     $ 680     $ 715
Finished Goods Sales Volumes   138      125      126       488       447

Sales Volumes: Finished steel sales volumes of 138 thousand tons increased 10%
from the third quarter as well as the prior year quarter due to higher demand
for long products on the West Coast.

Pricing: Average net sales prices for finished steel products decreased 3%
primarily due to the impact of lower scrap prices on selling prices for
finished goods.

Margins: Operating income of $2 million resulted from improved demand for
finished steel products, benefits from higher sales volumes and operational
efficiencies arising from productivity improvements.

Cost Reductions

During fiscal 2013, SG&A was lower by 9%, or $19 million, as compared to the
prior year, excluding $5million of operating expenses related to new APB
sites in fiscal 2013 and $2 million of environmental credits which benefited
fiscal 2012. Including production efficiencies which reduced costs of goods
sold, our cost reduction initiatives lowered annual pre-tax operating costs by
$25 million in fiscal 2013. Total restructuring charges in fiscal 2013 were $8
million pre-tax, or approximately $0.20 of diluted earnings per share. During
the fourth quarter, we incurred $3 million of restructuring charges, or
approximately $0.05 of diluted earnings per share. The restructuring charges
consisted primarily of cash severance costs from headcount reductions,
contract termination costs, and other related costs.

An additional cost reduction program beginning in fiscal 2014 is targeted to
further reduce operating expenses by $30 million, primarily in our Metals
Recycling Business. We expect these cost reductions to include approximately
$27 million from reduced production expenses within costs of goods sold and $3
million from reduced SG&A.

Fiscal Year 2013 Results

For fiscal 2013, Schnitzer reported full year revenues of $2.6 billion and
adjusted loss per share of $(0.07). Reported loss per share was $(10.56) for
fiscal 2013. This compares with fiscal 2012 revenues of $3.3 billion and
adjusted diluted earnings per share of $1.12 and reported diluted earnings per
share of $0.99.

During fiscal 2013, the Company invested $50 million in acquisitions,
including the purchase of noncontrolling interests, and $90 million in capital
expenditures and returned $20million to shareholders through dividend
payments.

The Company's effective tax rate for fiscal year 2013 was a benefit of 17%
which was lower than the federal statutory rate primarily due to the
recognition of a valuation allowance on deferred tax assets and the impact of
the non-deductible portion of the goodwill impairment charge.

Analysts' Conference Call: Fourth Quarter of Fiscal 2013

A conference call and slide presentation to discuss results will be held
today, October 29, 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 Year Ended
                August 31,    May 31,       August 31,    August 31,      August 31,
                                                                        
                2013          2013          2012          2013            2012
                                                                          
REVENUES:
                                                                          
Metals
Recycling
Business:
Ferrous         $ 397,947     $ 465,194     $ 485,030     $ 1,677,035     $ 2,297,580
revenues
Nonferrous      129,199       130,600       157,915       501,655         614,467
revenues
Other           7,817        9,076        8,864        31,794         36,660      
revenues
Total Metals
Recycling       534,963       604,870       651,809       2,210,484       2,948,707
Business
revenues
                                                                          
Auto Parts      79,231        86,439        71,662        313,306         316,884
Business
Steel
Manufacturing   96,235        92,943        90,179        352,454         333,227
Business
Intercompany
sales           (53,844    )  (73,957   )   (51,365   )   (254,333    )   (257,880    )
eliminations
Total           $ 656,585    $ 710,295    $ 762,285    $ 2,621,911    $ 3,340,938 
revenues
                                                                          
                                                                          
OPERATING INCOME (LOSS):
                                                                          
Adjusted
Metals          $ (6,097   )  $ 8,789       $ 13,004      $ 22,504        $ 63,872
Recycling
Business^(1)
Auto Parts      3,191         8,273         1,611         24,539          33,304
Business
Steel
Manufacturing   2,169        (72       )   (2,683    )   6,541          (2,081      )
Business
Segment
operating       (737       )  16,990        11,932        53,584          95,095
income
(loss)^(2)
                                                                          
Corporate       (10,188    )  (8,625    )   (8,875    )   (38,750     )   (37,512     )
expense
Intercompany    299          695          588          (664        )   1,097       
eliminations
Adjusted
operating       (10,626    )  9,060         3,645         14,170          58,680
income (loss)
                                                                          
Goodwill
impairment      (321,000   )  —             —             (321,000    )   —
charge
Other asset
impairment      (13,053    )  —             —             (13,053     )   —
charges
Restructuring   (2,900     )  (1,873    )   (5,012    )   (7,906      )   (5,012      )
charges
Total
operating       $ (347,579 )  $ 7,187      $ (1,367  )   $ (327,789  )   $ 53,668    
income (loss)
                                                                          
(1) Adjusted for goodwill impairment charge and other asset impairment charges. See
Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
(2) Segment operating income (loss) does not include the impact of restructuring
charges.


SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
                                                         
                 For the Three Months Ended                 Fiscal Year Ended
                 August 31,     May 31,       August 31,    August 31,      August 31,
                                                                        
                 2013           2013          2012          2013            2012
Revenues         $ 656,586     $ 710,295    $ 762,285    $ 2,621,911   $ 3,340,938 
Cost of goods    620,457        652,263       712,434       2,415,391      3,079,716
sold
Selling,
general and      47,388         49,390        46,668        193,533         205,178
administrative
Income from      (633       )   (418      )   (462      )   (1,183      )   (2,636      )
joint ventures
Goodwill
impairment       321,000        —             —             321,000         —
charge
Other asset
impairment       13,053         —             —             13,053          —
charges
Restructuring    2,900         1,873        5,012        7,906          5,012       
Operating        (347,579   )   7,187         (1,367    )   (327,789    )   53,668
income (loss)
Interest         (2,584     )   (2,788    )   (2,407    )   (9,743      )   (11,880     )
expense
Other income     (332       )   141          1,097        83             1,168       
(expense), net
Income (loss)
before income    (350,495   )   4,540         (2,677    )   (337,449    )   42,956
taxes
Income tax
benefit          61,617        (2,986    )   1,830        57,426         (14,039     )
(expense)
Net income       (288,878   )   1,554         (847      )   (280,023    )   28,917
(loss)
Net income
(loss)
attributable     (356       )   (734      )   362          (1,419      )   (1,513      )
to
noncontrolling
interests
Net income
(loss)           $ (289,234 )   $ 820        $ (485    )   $ (281,442  )   $ 27,404    
attributable
to SSI
                                                                            
Income (loss)
per share        $ (10.82   )   $ 0.03        $ (0.02   )   $ (10.56    )   $ 1.00
attributable
to SSI - basic
Income (loss)
per share
attributable     $ (10.82   )   $ 0.03        $ (0.02   )   $ (10.56    )   $ 0.99
to SSI -
diluted
                                                                            
Weighted
average number
of common
shares:
Basic            26,733         26,671        26,777        26,656          27,317
Diluted          26,733         26,813        26,777        26,656          27,553
Dividends
declared per     $ 0.188        $ 0.188       $ 0.188       $ 0.750         $ 0.410
common share
                                                                                        

SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)
                                                                         
                                                              Fiscal Year                                                   Fiscal
                                                                                                                            Year
                1Q13      2Q13        3Q13        4Q13        2013          1Q12        2Q12        3Q12        4Q12        2012
Metals
Recycling
Business
Ferrous
Selling
Prices ($/LT)
^(1)
Domestic        $  354    $   363     $   367     $   346     $   358       $   420     $   424     $   414     $   357     $   406
Exports         360      374        367        332        359          436        420        427        384        417
Average         $  358    $   372     $   367     $   336     $   358       $   432     $   421     $   424     $   378     $   415
                                                                                                                            
Ferrous Sales
Volume (LT)
Domestic        279,450   260,509     314,240     288,112     1,142,311     319,450     297,142     308,521     261,748     1,186,861
Export          675,212  842,509    849,991    799,644    3,167,356    912,939    1,055,237  1,044,063  915,927    3,928,166
Total           954,662   1,103,018   1,164,231   1,087,756   4,309,667     1,232,389   1,352,379   1,352,584   1,177,675   5,115,027
Processed
                                                                                                                            
Nonferrous
Average Price   $  0.95   $   0.97    $   0.94    $   0.89    $   0.93      $   1.00    $   0.91    $   0.97    $   0.90    $   0.94
($/LB) ^(1)
                                                                                                                            
Nonferrous
Sales Volume    118,931   125,500     135,256     140,755     520,442       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     $   667     $   680       $   722     $   725     $   734     $   685     $   715
                                                                                                                            
Sales Volume
(ST) ^ (2)
Rebar           78,159    58,132      71,561      83,911      291,763       62,487      51,141      55,378      74,797      243,803
Coiled          45,533    32,130      46,088      46,334      170,085       39,120      55,785      42,753      45,103      182,761
Products
Merchant Bar    5,926    5,355      7,358      7,298      25,937      5,030      5,097      4,812      5,837      20,776
and Other
Total           129,618   95,617      125,007     137,543     487,785       106,637     112,023     102,943     125,737     447,340
                                                                                                                            
Auto Parts
Business
Car purchase    79        88          95          94          356           85          84          89          81          339
volumes (000)
Number of
self-service
locations at    51        59          61          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)
                                            August 31, 2013  August 31, 2012
Assets
Current Assets:
Cash and cash equivalents                    $  13,481         $   89,863
Accounts receivable, net                     188,270           137,313
Inventories, net                             236,049           246,992
Other current assets                         29,430           42,651
Total current assets                         467,230           516,819
                                                               
Property, plant and equipment, net           564,426           564,185
                                                               
Goodwill and other assets                    373,856          682,569
                                                               
Total assets                                 $  1,405,512     $   1,763,573
                                                               
Liabilities and Equity
Current liabilities:
Short-term borrowings                        $  9,174          $   683
Other current liabilities                    156,960          178,159
Total current liabilities                    166,134           178,842
                                                               
Long-term debt, net of current maturities    372,663           334,629
                                                               
Other long-term liabilities                  85,516            142,158
                                                               
Redeemable noncontrolling interest           —                 22,248
                                                               
Equity:
Total Schnitzer Steel Industries, Inc.       776,558           1,080,583
("SSI") shareholders' equity
Noncontrolling interests                     4,641            5,113
Total equity                                 781,199          1,085,696
Total liabilities and equity                 $  1,405,512     $   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 the impact from new stores in our Auto Parts Business. 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 non-GAAP financial measures provides a meaningful presentation of
the Company's results from its core underlying business operations excluding
adjustments for goodwill and other impairment charges, restructuring charges,
tax valuation allowances and startup costs that are not related to the
Company's core underlying business operational performance and improves the
period-to-period comparability of the Company's results from its core
underlying business operations. 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.

Operating Income (Loss)
($ in millions)                   Quarter                    Year
                                   4Q13      3Q13   4Q12     2013      2012
Consolidated Operating Income
(Loss):
Operating Income (Loss)            $ (348 )   $ 7     $ (1 )   $ (328 )   $ 54
Goodwill Impairment Charge         321        —       —        321        —
Other Asset Impairment Charges     13         —       —        13         —
Restructuring Charges              3         2      5      8         5
Adjusted Operating Income (Loss)   $ (11  )   $ 9     $ 4      $ 14       $ 59
                                                                          
MRB Operating Income (Loss):
Operating Income (Loss)            $ (340 )   $ 9     $ 13     $ (312 )   $ 64
Goodwill Impairment Charge         321        —       —        321        —
Other Asset Impairment Charges     13        —      —       13        —
Adjusted Operating Income          $ (6   )   $ 9     $ 13     $ 23       $ 64
(Loss)^(1)
                                                                          
(1) Numbers may not foot due to rounding


Net Income (Loss) attributable to SSI
($ in millions)                    Quarter                   Year
                                    4Q13      3Q13   4Q12    2013      2012
Net Income (Loss) attributable to   $ (289 )   $ 1     $ —     $ (281 )   $ 27
SSI
Goodwill impairment charge, net     254        —       —       254        —
of tax
Other asset impairment charges,     9          —       —       9          —
net of tax
Restructuring charges, net of tax   1          1       3       5          3
Valuation allowance on deferred     11        —      —      11        —
tax assets
Adjusted Net Income (Loss)          $ (14  )   $ 2     $ 3     $ (2   )   $ 31
attributable to SSI^(1)
                                                                          
(1) Numbers may not foot due to rounding


Diluted Earnings per share attributable to SSI
($ per share)         Quarter                            Year
                       4Q13        3Q13      4Q12        2013        2012
Net Income (Loss)
per share              $ (10.82 )   $ 0.03     $ (0.02 )   $ (10.56 )   $ 0.99
attributable to SSI
Goodwill impairment
charge, net of tax,    9.52         —          —           9.55         —
per share
Other asset
impairment charges,    0.33         —          —           0.33         —
net of tax, per
share
Restructuring
charges, net of tax,   0.05         0.06       0.12        0.20         0.12
per share
Valuation allowance
on deferred tax        0.41        —         0.01      0.41        0.01
assets, per share
Adjusted Diluted EPS   $ (0.51  )   $ 0.09     $ 0.11      $ (0.07  )   $ 1.12
attributable to SSI
                                                                          

Auto Parts Business New Stores Impact
($ in millions)          4Q13
                          Existing Stores^(1)   New Stores^(2)    Reported
Revenues                  $     72               $    7             $  79
Operating Income          $     5                $    (2    )       $  3
(Loss)
Operating Income          7             %        NM                 4       %
Margin
Car Purchase Volumes      84                     10                 94
(000)
                                                                    
                          3Q13
                          Existing Stores^(1)    New Stores^(2)     Reported
Revenues^(3)              $     80               $    7             $  86
Operating Income          $     10               $    (1    )       $  8
(Loss)^(3)
Operating Income          12            %        NM                 10      %
Margin
Car Purchase Volumes      87                     8                  95
(000)
                                                                    
                          FY13                              
                          Existing Stores^(1)    New Stores^(2)     Reported
Revenues                  $     296              $    17            $  313
Operating Income          $     29               $    (5    )       $  25
(Loss)^(3)
Operating Income          10            %        NM                 8       %
Margin
Car Purchase Volumes      335                    21                 356
(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 60
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 61
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 106^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; benefits, 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 Item 1A. Risk Factors of Part I of our most
recent quarterly report on Form 10-Q and annual report on Form 10-K. 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 impact of long-lived asset
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; impact of equipment upgrades and failures on
production; product liability claims; the impact of impairment of our deferred
tax assets; 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:
Tom Zelenka, 503-323-2821
tzelenka@schn.com
or
Company Info:
www.schnitzersteel.com
ir@schn.com
 
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