Schnitzer Steel Industries, Inc. dba Radius Recycling reported results for the first quarter of fiscal 2024.
The company reported a loss per share from continuing operations of $(0.64) and a net loss of $(18) million. Adjusted loss per share from continuing operations was $(0.64) and adjusted EBITDA was $1 million.
Operating performance in the first quarter reflected sequentially tighter supply flows for recycled metals, which, together with lower average net selling prices for the Company’s products, resulted in a compression of metal spreads. Market conditions for recycled metals remained challenging during the quarter, primarily due to lower manufacturing activity in the U.S. and the impact across Asia of the economic slowdown in China, including elevated levels of Chinese steel exports.
Nonferrous production from the company’s advanced nonferrous recovery technologies and from an acquisition made in fiscal 2023 contributed to a 12 percent increase in nonferrous sales volumes year-over-year. The company’s mill utilization rate in the quarter was 95 percent and finished steel sales volumes were 10 percent higher year-over-year due to healthy non-residential demand in western U.S markets.
Tamara Lundgren, chairman and chief executive officer, said, “While the current market environment is challenging, we have demonstrated our ability to navigate effectively through periods of volatility and tight scrap availability by focusing on what we can control. This includes higher nonferrous volumes from our strategic investments and delivering on our $30 million productivity improvement program that we announced last October. We are well-positioned to benefit from near-term market improvements and the expected longer-term increased demand for recycled metals associated with decarbonization and low-carbon technologies.”