Schnitzer Reports First Quarter 2014 Financial Results

  Schnitzer Reports First Quarter 2014 Financial Results

               Sequential Improvements in Financial Performance

                    Continued Progress on Cost Reductions

Business Wire

PORTLAND, Ore. -- January 8, 2014

Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) today reported an adjusted loss
per share of $(0.18) and a loss per share of $(0.23) for its fiscal 2014 first
quarter ended November 30, 2013. Adjusted results for the first quarter
exclude a $2 million, or $0.05 per share, restructuring charge associated with
cost reduction initiatives. In the first quarter of fiscal 2013, the Company
reported an adjusted loss per share of $(0.02) and a loss per share of
$(0.06).

All three business segments generated positive operating income during the
first quarter of fiscal 2014. As anticipated, our Metals Recycling Business
improved sequentially, delivering results slightly above break-even. Our Auto
Parts Business also improved compared to the fourth quarter of fiscal 2013,
recording operating margins of 9%, excluding the impact of new stores added
since the first quarter of fiscal 2013. Our Steel Manufacturing Business was
in line sequentially notwithstanding a bad debt expense of $1 million, or
$0.03 per share. The first quarter results also include a charge for deferred
tax valuation allowances of $1 million, or $0.04 per share.

Market conditions improved as the quarter progressed. Both prices and demand
were relatively weak in the first half of the quarter which impacted shipments
in September and October. In the second half of the quarter, demand
strengthened which increased prices by approximately $30 per ton.
Consequently, performance in the last month of the quarter was significantly
better than during the first two months. The softer demand at the start of the
quarter resulted in an estimated adverse impact from average inventory costs
of approximately $6 per ton in our Metals Recycling Business. Based on current
market conditions and our cost reduction initiatives, we anticipate improved
results in each of our businesses in the second quarter.

                                                                 
Summary Results
($ in millions, except per share amounts)
                                            Quarter
                                            1Q14        4Q13         1Q13
Revenues                                    $ 588       $ 657        $ 593
                                                                     
Operating Income (Loss)                     $ (4    )   $ (348   )   $ 1
Goodwill Impairment Charge                  —           321          —
Other Asset Impairment Charges              —           13           —
Restructuring Charges                       2          3           2       
Adjusted Operating Income (Loss)^(1)        $ (2    )   $ (11    )   $ 3
                                                                     
Net Loss attributable to SSI                $ (6    )   $ (289   )   $ (2    )
                                                                     
Adjusted Net Loss attributable to SSI^(1)   $ (5    )   $ (14    )   $ (1    )
                                                                     
Net Loss per share attributable to SSI      $ (0.23 )   $ (10.82 )   $ (0.06 )
                                                                     
Adjusted diluted EPS attributable to        $ (0.18 )   $ (0.51  )   $ (0.02 )
SSI^(1)
                                                                     

(1) 1Q14 and 1Q13 include adjustments for restructuring charges. 4Q13 includes
adjustments for a non-cash goodwill impairment charge, other asset impairment
charges, restructuring charges and tax valuation allowances net of tax. See
Non-GAAP Financial Measures for reconciliation to U.S. GAAP.

“Market conditions improved as the quarter progressed and, consequently,
performance in the last month of the quarter was significantly better than
during the first two months. All three business segments generated positive
operating income, including higher sequential performance for both our Metals
Recycling and Auto Parts Businesses, and a continuing trend of profitability
in our Steel Manufacturing Business," said Tamara Lundgren, President and
Chief Executive Officer. "We generated $26 million in operating cash flow in
the first quarter, our cost reduction initiatives are underway to deliver at
least $20 million of savings in fiscal 2014, and we continued to expand our
Auto Parts Business platform by acquiring our fourth store in the greater
Seattle-Tacoma metropolitan area which provides supply chain synergies with
our Metals Recycling Business."

Key business drivers during the first quarter of fiscal 2014:

  *Metals Recycling Business (MRB) generated $1 million in operating income,
    including the estimated adverse impact from average inventory costing of
    approximately $6 per ton. The combination of improving market conditions,
    early benefits from our cost reduction program and non-recurrence of other
    cost items which impacted the previous quarter resulted in a sequential
    increase in MRB’s operating performance during the first quarter.
  *Auto Parts Business (APB) operating income of $6 million and margin of 9%,
    which excludes new sites added since the first quarter of fiscal 2013,
    represents sequential increases of $1 million and 200 basis points,
    respectively. Including the new stores, car purchase volumes increased by
    15% from the prior year first quarter, primarily reflecting contributions
    from those stores.
  *Steel Manufacturing Business (SMB) operating income of $2 million
    reflected steady demand in the West Coast markets but was partially offset
    by a bad debt expense of $1 million from a customer bankruptcy.

Metals Recycling Business

Summary of Metals Recycling Business Results                          
($ in millions, except selling prices; Fe volumes 000s long tons; NFe
volumes Ms lbs)
                                                                        
                               Quarter
                                1Q14     4Q13      Change  1Q13      Change
Total Revenues                  $  490    $ 535      (8  )%   $ 494     (1  )%
                                                                        
Ferrous Revenues                $  370    $ 398      (7  )%   $ 370     —   %
Ferrous Volumes                 978       1,088      (10 )%   955       2   %
Avg. Net Ferrous Sales          $  348    $ 336      4   %    $ 358     (3  )%
Prices ($/LT)^(1)
                                                                        
Nonferrous Revenues             $  113    $ 129      (12 )%   $ 117     (3  )%
Nonferrous Volumes              124       141        (12 )%   119       4   %
Avg. Net Nonferrous Sales       $  0.89   $ 0.89     —   %    $ 0.95    (6  )%
Prices ($/lb)^(1)
                                                                        
Operating Income (Loss)^(2)     $  1      $ (340 )   NM       $ 6       (90 )%
Goodwill Impairment             —         321        NM       —         NM
Asset Impairment Charges        —         13         NM       —         NM
                                                                        
Adjusted Operating Income       $  1      $ (6   )   NM       $ 6       (90 )%
(Loss)^(3)
                                                                        
(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.
NM = Not meaningful


Sales Volumes: Ferrous sales volumes of 978 thousand tons in the first quarter
increased 2% and nonferrous volumes of 124 million pounds increased 4%
compared to the prior year first quarter.

Export customers accounted for 67% of total ferrous sales volumes in the first
quarter. Our ferrous and nonferrous products were shipped to 14 countries,
with China, South Korea and Turkey being the top ferrous export destinations.

Pricing: Export prices were soft in the first part of the first quarter, but
increased by $30 per ton toward the end of the quarter. The combination of
improving export prices and the strong domestic market led to higher average
net ferrous selling prices as compared to the previous quarter while
nonferrous prices were stable.

Margins: Operating income of $1 per ferrous ton, which included the estimated
adverse impact of average inventory accounting of $6 per ton, was partially
mitigated by improving market conditions and benefits of $3 million from
implementation of cost reduction initiatives.

Auto Parts Business

Summary of Auto Parts Business Results                                
($ in millions)
                                                                        
                             Quarter
                              1Q14      4Q13      Change    1Q13     Change
Revenues                      $  80      $  79      1   %      $  70    14  %
Operating Income^(1)          $  6       $  3       76  %      $  6     (12 )%
                                                                        
Car Purchase Volumes          91         94         (3  )%     79       15  %
(000s)
Locations (end of quarter)    62         61         2   %      51       22  %
                                                                        
(1) Operating income does not include the impact of restructuring
charges.
                                                                        

Revenues: Revenues in the first quarter increased 14% from the prior year
quarter due to incremental contributions from retail stores added since the
first quarter of fiscal 2013.

Margins: Operating margins, excluding the impact of the stores added in fiscal
2013, increased sequentially to 9%. During the first quarter, APB incurred
approximately $1 million of operating losses related to the new stores added
since the first quarter of fiscal 2013, including integration and start-up
costs, which lowered APB's reported operating margin to 7%. (See Non-GAAP
Financial Measures for reconciliation to U.S. GAAP.)

New Sites: In November, APB acquired its fourth self-service retail store in
the Seattle-Tacoma metropolitan area which expanded APB's presence in the
Pacific Northwest market. This location will supply our Metals Recycling
shredder in Tacoma, Washington, further enhancing synergies between our
operating segments.

Steel Manufacturing Business

Summary of Steel Manufacturing Business Results                   
($ in millions, except selling prices; volume 000s of short tons)
                                                                    
                               Quarter
                                1Q14    4Q13    Change  1Q13     Change
Revenues                        $ 88     $ 96     (8  )%   $ 92     (4  )%
Operating Income                $ 2      $ 2      (20 )%   $ 3      (49 )%
                                                                    
Avg. Net Sales Prices ($/ST)    $ 657    $ 667    (1  )%   $ 680    (3  )%
Finished Goods Sales Volumes    128      138      (7  )%   130      (1  )%
                                                                        

Sales Volumes: Finished steel sales volumes of 128 thousand tons approximated
the prior year first quarter, reflecting steady demand for construction
products on the West Coast.

Pricing: Average net sales prices for finished steel products of $657 per
short ton declined slightly from the prior year quarter due to the impact of
lower raw material prices on selling prices to end customers.

Margins: Operating income of $2 million approximated the fourth quarter of
fiscal 2013 due to additional production efficiencies of $1 million, partially
offset by slightly lower sales volumes and a bad debt expense of $1 million
from a customer bankruptcy.

Cost Reductions

Our cost reduction initiatives to further reduce our annual operating expenses
by $30 million continue to progress. Approximately 70% of the reduction is
expected to benefit fiscal 2014 results, with the full annual benefit expected
to be achieved in fiscal 2015. The reduction in operating expenses will
primarily occur in MRB and be achieved through a combination of headcount
reductions, implementation of transportation efficiencies, reduced lease
costs, and other productivity and non-trade procurement savings. We achieved
$4 million of benefits in the first quarter. We anticipate achieving a
quarterly run rate of $6 million of benefits by the end of the second quarter.
During the first quarter, we incurred a $2 million restructuring expense, or
$0.05 per share, in connection with this cost reduction program.

Corporate Items

The Company's full year tax rate for fiscal 2014 is anticipated to be
approximately 37%. The tax rate in the first quarter was a benefit of 12.7%,
which was lower than the federal statutory rate primarily due to the
recognition of a deferred tax valuation allowance on the results of foreign
operations.

The Company generated $26 million in operating cash flow during the first
quarter. Net debt of $364 million at the end of the first quarter decreased
slightly from the end of the fourth quarter in fiscal 2013. (See Non-GAAP
Financial Measures for reconciliation to U.S. GAAP.)

Analysts' Conference Call: First Quarter of Fiscal 2014

A conference call and slide presentation to discuss results will be held
today, January 8, 2014, 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
                      November 30, 2013   August 31, 2013   November 30, 2012
                                                             
REVENUES:
                                                             
Metal Recycling
Business:
   Ferrous sales       $   369,555         $  397,947        $   370,476
   Nonferrous sales    113,154             129,199           116,601
   Other sales        7,600              7,817            7,384         
   TOTAL MRB SALES     490,309             534,963           494,461
                                                             
Auto Parts Business    79,635              79,231            69,555
Steel Manufacturing    88,123              96,235            92,029
Business
Intercompany sales     (70,322       )     (53,844      )    (63,225       )
and eliminations
   Total Revenues      $   587,745         $  656,585        $   592,820
                                                             
                                                             
OPERATING INCOME
(LOSS):
Metal Recycling        $   590             $  (6,097    )    $   5,654
Business^(1)
Auto Parts Business    5,609               3,191             6,364
Steel Manufacturing    1,744              2,169            3,404         
Business
   Segment operating   7,943               (737         )    15,422
   income (loss)^(2)
                                                             
Corporate expense      (8,725        )     (10,188      )    (11,144       )
Intercompany           (1,031        )     299              (1,472        )
eliminations
   Adjusted
   operating income    (1,813        )     (10,626      )    2,806         
   (loss)
                                                             
Goodwill impairment    —                   (321,000     )    —
charge
Other asset            —                   (13,053      )    —
impairment charges
Restructuring          (1,812        )     (2,900       )    (1,593        )
charges
   Total operating     $   (3,625    )     $  (347,579  )    $   1,213     
   income (loss)
                                                             

(1) MRB operating income for the three months ended August 31, 2013 is
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 STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
                        
                         For the Three Months Ended
                          November 30, 2013  August 31, 2013  November 30,
                                                                2012
Revenues                  $   587,745        $  656,586       $  592,820  
Cost of goods sold        542,417             620,457           541,884
Selling, general and      47,550              47,388            47,995
administrative
(Income) loss from        (409          )     (633         )    135
joint ventures
Goodwill impairment       —                   321,000           —
charge
Other asset impairment    —                   13,053            —
charges
Restructuring charges     1,812              2,900            1,593       
Operating income (loss)   (3,625        )     (347,579     )    1,213
Interest expense          (2,702        )     (2,584       )    (2,017      )
Other income (expense),   176                (332         )    321         
net
Loss before income        (6,151        )     (350,495     )    (483        )
taxes
Income tax benefit        784                61,617           (960        )
(expense)
Net loss                  (5,367        )     (288,878     )    (1,443      )
Net income attributable
to noncontrolling         (861          )     (356         )    (228        )
interests
Net loss attributable     $   (6,228    )     $  (289,234  )    $  (1,671   )
to SSI
                                                                
Net loss per share
attributable to SSI -     $   (0.23     )     $  (10.82    )    $  (0.06    )
basic
Net loss per share
attributable to SSI -     $   (0.23     )     $  (10.82    )    $  (0.06    )
diluted
                                                                
Weighted average number
of common shares:
Basic                     26,755              26,733            26,567
Diluted                   26,755              26,733            26,567
Dividends declared per    $   0.188           $  0.188          $  0.188
common share
                                                                            


SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)

                                                                        Fiscal
                1Q14        1Q13      2Q13        3Q13        4Q13        2013
Metals
Recycling
Business
Ferrous
Selling
Prices ($/LT)
^(1)
Domestic        $  356      $  354    $   363     $   367     $   346     $   358
Exports         344        360      374        367        332        359
Average         $  348      $  358    $   372     $   367     $   336     $   358
                                                                          
Ferrous Sales
Volume (LT)
Domestic        322,531     279,450   260,509     314,240     288,112     1,142,311
Export          655,072    675,212  842,509    849,991    799,644    3,167,356
Total           977,603     954,662   1,103,018   1,164,231   1,087,756   4,309,667
                                                                          
Nonferrous
Average Price   $  0.89     $  0.95   $   0.97    $   0.94    $   0.89    $   0.93
($/LB) ^(1)
                                                                          
Nonferrous
Sales Volume    123,941     118,931   125,500     135,256     140,755     520,442
(LB, in 000s)
                                                                          
Steel
Manufacturing
Business
Sales Prices
($/ST) ^(1)
(2)
Average         $  657      $  680    $   690     $   687     $   667     $   680
                                                                          
Sales Volume
(ST) ^ (2)
Rebar           83,618      78,159    58,132      71,561      83,911      291,763
Coiled          38,322      45,533    32,130      46,088      46,334      170,085
Products
Merchant Bar    6,222      5,926    5,355      7,358      7,298      25,937
and Other
Total           128,162     129,618   95,617      125,007     137,543     487,785
                                                                          
Auto Parts
Business
Car purchase    91          79        88          95          94          356
volumes (000)
Number of
self-service
locations at    62          51        59          61          61          61
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)

                                          November 30, 2013  August 31, 2013
Assets
Current Assets:
Cash and cash equivalents                  $   29,934          $   13,481
Accounts receivable, net                   125,975             188,270
Inventories, net                           280,100             236,049
Other current assets                       29,898             29,430
Total current assets                       465,907             467,230
                                                               
Property, plant and equipment, net         554,010             564,426
                                                               
Goodwill and other assets                  372,202             373,856
                                                              
Total assets                               $   1,392,119      $   1,405,512
                                                               
Liabilities and Equity
Current liabilities:
Short-term borrowings                      $   613             $   9,174
Other current liabilities                  139,686            156,960
Total current liabilities                  140,299             166,134
                                                               
Long-term debt                             393,426             372,663
                                                               
Other long-term liabilities                86,123              85,516
                                                               
Equity:
Total Schnitzer Steel Industries, Inc.     767,264             776,558
("SSI") shareholders' equity
Noncontrolling interests                   5,007              4,641
Total equity                               772,271            781,199
Total liabilities and equity               $   1,392,119      $   1,405,512
                                                                   

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,
operating income margin for APB stores owned more than a year and debt, net of
cash. 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.
Management believes that debt, net of cash is a useful measure for investors
because, as cash and cash equivalents can be used, among other things, to
repay indebtedness, netting this against total debt is a useful measure of our
leverage. 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
                                        1Q14    4Q13      1Q13
Consolidated Operating Income (Loss):
Operating Income (Loss)                 $ (4 )   $ (348 )   $  1
Goodwill Impairment Charge              —        321        —
Other Asset Impairment Charges          —        13         —
Restructuring Charges                   2       3         2
Adjusted Operating Income (Loss)        $ (2 )   $ (11  )   $  3
                                                            
MRB Operating Income (Loss):
Operating Income (Loss)                 $ 1      $ (340 )   $  6
Goodwill Impairment Charge              —        321        —
Other Asset Impairment Charges          —       13        —
Adjusted Operating Income (Loss)        $ 1      $ (6   )   $  6


Net Loss attributable to SSI
($ in millions)                             Quarter
                                             1Q14    4Q13      1Q13
Net Loss attributable to SSI                 $ (6 )   $ (289 )   $ (2 )
Goodwill impairment charge, net of tax       —        254        —
Other asset impairment charges, net of tax   —        9          —
Restructuring Charges, net of tax            1        1          1
Valuation allowance on deferred tax assets   —       11        —    
Adjusted Net Loss attributable to SSI        $ (5 )   $ (14  )   $ (1 )


Diluted Earnings per share attributable to SSI
($ per share)                              Quarter
                                            1Q14       4Q13        1Q13
Net loss per share attributable to SSI      $ (0.23 )   $ (10.82 )   $ (0.06 )
Goodwill impairment charge, net of tax,     —           9.52         —
per share
Other asset impairment charges, net of      —           0.33         —
tax, per share
Restructuring Charges, net of tax, per      0.05        0.05         0.04
share
Valuation allowance on deferred tax         —          0.41        —       
assets, per share
Adjusted Diluted EPS attributable to SSI    $ (0.18 )   $ (0.51  )   $ (0.02 )

                                                            
Debt, Net of Cash
                                           November 30, 2013   August 31, 2013
Short-term borrowings                      $   613             $    9,174
Long-term debt, net of current             393,426            372,663
maturities
Total debt                                 394,039             381,837
Less: cash and cash equivalents            29,934             13,481
Total debt, net of cash                    $   364,105         $    368,356

                                                                            
Auto Parts Business New Stores Impact
($ in millions)         1Q14                                               
                         Existing          New Stores^(2)     Reported  
                         Stores^(1)
Revenues                 71                  9                    80
Operating Income         6                   (1             )     6
(Loss)^(3)
Operating Income         9             %     NM                   7         %
Margin
Car Purchase Volumes     80                  11                   91
(000)
                                                                            
                         4Q13                                               
                         Existing           New Stores^(2)      Reported  
                         Stores^(1)
Revenues                 72                  7                    79
Operating Income         5                   (2             )     3
(Loss)
Operating Income         7             %     NM                   4         %
Margin
Car Purchase Volumes     84                  10                   94
(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 108^th year of operations in 2014.

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 our most recent
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
 
Press spacebar to pause and continue. Press esc to stop.