Schnitzer Steel Completes Another Successful Year
PORTLAND, Ore.--Schnitzer Steel Industries, Inc. today reported net income for the fiscal fourth quarter and year ended August 31, 2007 of $38 million and $131 million, respectively, and earnings per diluted share of $1.28 for the quarter and $4.32 for the fiscal year. These results reflect record sales levels for the sixth consecutive year. The Company generated consolidated revenues of $2.6 billion for fiscal 2007, an increase of $718 million, or 39%, from $1.9 billion in fiscal 2006. All three of the Company’s operating divisions exceeded previous highs in revenues on both a quarterly and annual basis. Excluding the unusual items from 2006 described below, operating income for the fiscal year increased 12%, and earnings per share increased 9% from the prior year.
Fiscal 2007 net income compares to net income of $143 million, or $4.65 per diluted share, for fiscal 2006. Included in fiscal 2006 net income was a gain of $35 million (after tax) related to the disposition of the Hugo Neu joint venture assets. Additionally, net income in 2006 was reduced by charges of $15 million for reserves relating to the SEC and Department of Justice investigations into the Company’s past payment practices in Asia. Excluding the gain from the disposition of joint venture assets and the charges for the investigation reserve, fiscal 2006 net income for the comparable period would have been $122 million, or $3.97 per diluted share.
Fiscal 2007 fourth quarter net income compares to record net income of $50 million, or $1.62 per diluted share, during the fourth quarter of fiscal 2006. Net income in the fourth quarter of 2006 included a $1 million after-tax gain from the disposition of the Company’s Hugo Neu joint venture assets. Excluding the gain, fourth quarter 2006 net income would have been $49 million, or $1.58 per diluted share. Fourth quarter 2007 net income declined compared to the third quarter of this year in large part due to the timing of certain SG&A expenses.
|
(in millions, except per-share data) |
Fourth Quarter
2007 |
Fourth Quarter
2006 |
Third Quarter
2007 |
Fiscal 2007 |
Fiscal 2006 |
||||||
| Revenues | $ | 749 | $ | 605 | $ | 709 | $ | 2,572 | $ | 1,855 | |
| Operating Income | $ | 63 | $ | 77 | $ | 70 | $ | 214 | $ |
175 |
(1) |
| Net Income | $ | 38 | $ | 50 | $ | 44 | $ | 131 | $ | 143 | |
| Diluted EPS | $ | 1.28 | $ | 1.62 | $ | 1.47 | $ | 4.32 | $ | 4.65 | |
| Gain on Asset Disposition (net of tax) |
-- |
1 | -- |
-- |
$ |
35 |
|||||
| Charge for Investigation Reserve | -- | -- | -- |
-- |
($15 |
) |
|||||
| Net Income excluding Gain on Asset Disposition and Charge for Investigation Reserve |
$ |
38 |
$ |
49 |
$ | 44 |
$ |
131 |
$ |
122 |
|
| Diluted EPS excluding Gain on Asset Disposition and Charge for Investigation Reserve | $ | 1.28 | $ | 1.58 | $ | 1.47 |
$ |
4.32 |
$ |
3.97 |
|
|
(1) Includes $15 million in charges related to SEC and Department of Justice investigations. |
|||||||||||
“All three of our businesses performed well, as we concluded another very successful year,” said John Carter, President and CEO. “At the beginning of the year we had expected solid annual increases in revenues and operating income, and we are pleased to have achieved those objectives. During the year we were able to leverage our global sales network and deep water port facilities to reach a diversified world-wide customer base and achieve record revenues. In addition, we continued to reinvest in our businesses through capital improvements and value creating acquisitions and returned money to our shareholders through the repurchase of 8% of our outstanding shares.”
“Looking forward, the positive macro-economic trends supporting our businesses, including global increases in steel consumption and strong demand for raw materials, remain in place. We believe the operational platform we have established will allow us to continue to take advantage of the positive environment in which we operate, and we remain committed to achieving further growth, both through additional acquisitions and organically through improved productivity and investments in technology.”
“During the year, we remained focused on our objectives of increasing throughput, lowering conversion costs and using technology to provide value to our customers,” continued Tamara Lundgren, Executive Vice President and COO. “Ferrous and nonferrous sales volumes, steel products manufactured and scrapped vehicles purchased were all annual records. We saw operational improvements related to our investments in new equipment and infrastructure and our new shredders and sorting systems allowed us to produce a better quality of recycled metal for use in making steel. Our focus in these areas allowed us to overcome significant challenges related to higher raw material and transportation costs.”
Metals Recycling Business
The Metals Recycling Business posted record quarterly and annual revenues as it continued to benefit from robust export markets for recycled metals while maintaining a high level of throughput at its processing facilities. Annual revenues increased 49% and operating income increased 30% over fiscal 2006.
| ($ in millions, except selling prices; ferrous volume in thousands of long tons, non-ferrous volumes in millions of pounds) |
Fourth Quarter
2007 |
Fourth Quarter
2006 |
Third Quarter
2007 |
Fiscal 2007 |
Fiscal 2006 |
|||||
| Total Revenues | $ | 616 | $ | 487 | $ | 587 | $ | 2,089 | $ | 1,407 |
| Ferrous Revenues | $ | 501 | $ | 387 | $ | 470 | $ | 1,682 | $ | 1,132 |
| Ferrous Volumes | ||||||||||
| (Processing/ | ||||||||||
| Trading) | 1,252/253 | 942/459 | 1,028/362 | 4,291/1,212 | 3,289/1,272 | |||||
| Avg. Net Ferrous | ||||||||||
| Sales Prices | ||||||||||
| ($/LT)(1) | ||||||||||
| (Processing/ | ||||||||||
| Trading) | $ | 287/298 | $ | 243/253 | $ | 294/308 | $ | 263/279 | $ | 215/226 |
| Nonferrous Volumes | 105 | 88 | 108 | 383 | 302 | |||||
| Avg. Net Nonferrous Sales Prices ($/LB)(1) | $ | 1.04 | $ | 1.08 | $ | 1.05 |
$ |
1.02 |
$ |
0.87 |
| Operating Income (2) | $ | 46 | $ | 62 | $ | 55 | $ | 166 | $ | 128 |
|
(1) Sales prices are shown net of freight (2) Includes operating income from joint ventures |
||||||||||
Revenues from the Metals Recycling Business increased 5% over the third quarter of fiscal 2007 and 26% over the fourth quarter of 2006, driven by increased volumes and strong market pricing. Processed ferrous sales volumes were a record, increasing 22% quarter over quarter and 30% year over year. Nonferrous sales volumes were down slightly compared to the record third quarter 2007, which benefited from the sale of material which had accumulated during the installation and testing of the new megashredder,and were up 19% compared to the fourth quarter of 2006.
As expected, processed ferrous average net selling prices declined slightly from the record levels in the third quarter while increasing 18% year over year. During the quarter, nonferrous prices also remained strong.
Operating income for the quarter was its third highest since the separation of the Metals Recycling joint ventures with Hugo Neu in early 2006. Income in the fourth quarter of 2006 benefited from a combination of rising prices and falling inventory costs, while income in the third quarter of this year included the sale of the high margin nonferrous material described above. Compared to these periods, the Company also experienced higher conversion costs due to the installation of its fourth megashredder, at its Portland, Oregon export facility, and higher SG&A costs, primarily related to the recognition of FAS 123R expenses.
Auto Parts Business
The Auto Parts Business reported record quarterly and annual revenues and operating income approximately equal to its previous quarterly record Annual revenues were 22% higher than fiscal 2006.
|
($ in millions, except locations) |
Fourth
Quarter 2007 |
Fourth Quarter 2006 |
Third
Quarter 2007 |
Fiscal 2007 |
Fiscal 2006 |
|||||
| Revenues | $ | 74 | $ | 64 | $ | 71 | $ | 266 | $ | 218 |
| Operating Income | $ | 10 | $ | 9 | 10 | $ | 29 | $ | 28 | |
| Locations (end of quarter) | 52 | 51 | 52 |
52 |
51 |
|||||
Revenues for the Auto Parts Business increased 16% over the fourth quarter of 2006 and 4% from the third quarter of this year. The year over year increase was due to higher core and scrap revenues due to higher ferrous and nonferrous metals prices and increased volumes and higher parts sales in the Company’s full-service operation. The increase on a quarter over quarter basis was primarily attributable to higher core and scrap revenues due to higher metals prices and increased volumes and higher full-service parts sales, offset by the impact of less favorable seasonal weather conditions on the Company’s self-service admissions revenues and parts sales.
Fourth quarter operating income increased 9% over the fourth quarter of 2006 and was flat compared to the record operating income in the third quarter of this year. The increased operating income compared to the fourth quarter of last year was primarily the result of improved full-service profitability, better performance at the self-service conversion stores and higher volumes and margins from scrap and core sales. Compared to the third quarter of this year, improved results in both the self-service conversion stores and the full-service operation offset lower margins on the sale of cores and scrapped vehicles and seasonally lower retail sales.
Steel Manufacturing Business
The Steel Manufacturing Business benefited from record revenues and posted its third highest ever quarterly operating income. Revenues for the full year were 10% higher than in fiscal 2006.
| ($ in millions, except selling prices; volume in thousands of tons) |
Fourth
Quarter 2007 |
Fourth Quarter 2006 |
Third
Quarter 2007 |
Fiscal 2007 |
Fiscal 2006 |
|||||
| Revenues | $ | 117 | $ | 104 | $ | 112 | $ | 425 | $ | 387 |
| Avg. Net Sales Prices ($/T) | $ | 617 | $ | 550 | $ | 596 |
$ |
575 |
$ |
528 |
| Sales Volume | 184 | 181 | 182 | 713 | 703 | |||||
| Operating Income | $ | 20 | $ | 21 | $ | 18 | $ | 64 | $ | 75 |
The market for steel products on the West Coast remained strong and average net sales prices of $617/ton were a record. Revenues for the Steel Manufacturing Business increased 4% from the third quarter of 2007 and 13% from the fourth quarter of 2006 driven by the higher prices. Average net sales prices increased $21/ton, or 4%, compared to the third quarter, and $67/ton, or 12% from the fourth quarter of 2006. Volumes were relatively flat on both a quarter over quarter and year over year basis.
Operating income increased compared to the third quarter due to the higher sales prices which were only partially offset by higher raw material costs. Compared to the fourth quarter of 2006, operating income declined, as scrap and other raw materials used in the manufacture of steel increased more than net selling prices. Operating income in the fourth quarter of 2006 was the highest ever for the Steel Manufacturing Business.
Share Repurchase:
During the quarter, the Company repurchased one million shares of its Class ‘A’ common stock at an average cost of $53.75/share. During fiscal 2007, the Company repurchased 2.5 million shares, or approximately 8% of the total shares outstanding. Under the authority granted by its Board of Directors, the Company may repurchase an additional 2.2 million shares.
Outlook
The factors that may affect the Company’s results in the first quarter of fiscal 2008 include:
Metals Recycling Business:
Pricing. The international markets for scrap metal are expected to remain strong and gross prices for ferrous scrap are expected to increase from the recently completed fourth quarter. Ocean-going freight costs are rising significantly and while prices for scrap have historically adjusted for increases in freight, the rapid rise in the cost of export shipments is expected to result in a slight decline in ferrous average net selling prices from the prices in the fourth quarter. Ferrous average net selling prices are expected to be significantly higher than the prices in the first quarter of 2007.
The prices for nonferrous materials are expected to trend down slightly from the strong levels experienced in the fourth quarter and be comparable to the levels in the first quarter of last year.
Sales volumes. Depending on the timing of shipments, first quarter ferrous scrap volumes in the processing business are expected to be between 1.1 million and 1.2 million tons, down slightly from the fourth quarter, but up significantly on a year over year basis. Nonferrous sales volumes are expected to decline approximately 10% from the recently completed fourth quarter, but increase 15-20% compared to the first quarter of 2007.
Margins. The spread between export sales prices for recycled metals and the cost of purchasing materials is expected to narrow during the quarter primarily due to the increased cost of ocean- going freight. As a result, margins in the first quarter are expected to decline somewhat from the fourth quarter but remain well above the margins reported in the first quarter of 2007.
Auto Parts Business:
Revenues. Revenues are expected to increase on a year over year basis as a result of improved parts sales in both the full-service and self-service operations and increased scrap and core revenues due to higher volumes and prices for recycled metals. Compared to the recently completed fourth quarter, revenues should be level to slightly down as normal seasonal improvements in self-service parts sales should be offset by lower scrap and core volumes and seasonal declines in full-service parts sales.
Margins. Margins in the first quarter are expected to improve from the first quarter of 2007 due to the higher parts sales and an improvement in the spread between core and scrap sales and the cost of scrapped vehicles. Compared to the fourth quarter, margins are expected to decline due to lower parts sales in the full-service operation and lower core yields.
Steel Manufacturing Business:
Pricing. Demand for steel products is expected to remain good but soften from the fourth quarter. Based on current market conditions, the average net sales prices during the quarter are expected to decline slightly from the record prices realized in the recently completed fourth quarter, but remain significantly higher than prices realized in the first quarter of 2007.
Sales Volumes. Sales volumes during the quarter are expected to decline from the volumes shipped during the fourth quarter and approximate the volumes shipped during the first quarter of 2007.
Margins. Operating margins are expected to decline on both a quarter over quarter and year over year basis as the cost of scrap and other raw materials continues to increase while sales prices decline slightly.
Fourth Quarter 2007 Conference Call
A conference call to discuss results will be held today, October 29, 2007, at 11:30 a.m. EDT, hosted by John Carter, President and Chief Executive Officer, and Greg Witherspoon, Chief Financial Officer. The call will be webcast and is accessible on Schnitzer Steel’s web site at www.schnitzersteel.com.
Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 34 operating facilities located in 11 states throughout the country, including six export facilities located on both the East and West Coasts and in Hawaii. The Company’s vertically integrated operating platform also includes its auto parts and steel manufacturing businesses. The Company’s auto parts business sells used auto parts through its 35 self-service facilities and 17 full-service facilities located in 14 states and in western Canada. With an annual production capacity of over 750,000 tons, the Company’s steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 102nd year of operations in fiscal 2008.
This news release includes four non-GAAP financial measures: net income and net income per diluted share excluding a charge for investigation reserve and net income and net income per diluted share excluding a gain on disposition of joint venture assets and charge for investigation reserve. Management believes that by excluding the impact of the gain and the charge for the investigation reserve, these measures allow for better comparisons with the current period and provide a better insight into the Company’s operating performance.
This news release, particularly the Outlook section, contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company’s outlook for the business and statements as to expected pricing, sales volume, operating margin and operating income. Such statements can generally be identified because they contain expect, believe, anticipate, estimate and other words that convey a similar meaning. One can also identify these statements as statements that do not relate strictly to historical or current facts. Examples of factors affecting the Company that could cause actual results to differ materially from current expectations are the following: volatile supply and demand conditions affecting prices and volumes in the markets for both the Company’s products and raw materials it purchases; world economic conditions; world political conditions; changes in federal and state income tax laws; impact of pending or new laws and regulations regarding imports and exports into the United States and other foreign countries; foreign currency fluctuations; competition; seasonality, including weather; energy supplies; freight rates; loss of key personnel; the inability to complete expected large scrap export shipments in the current quarter; business integration issues relating to acquisitions of businesses; and business disruptions resulting from installation or replacement of major capital assets, as discussed in more detail in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent annual report on Form 10-K or quarterly report on Form 10-Q. One should understand that it is not possible to predict or identify all factors that could cause actual results to differ from the Company’s forward-looking statements. Consequently, the reader should not consider any such list to be a complete statement of all potential risks or uncertainties. The Company does not assume any obligation to update any forward-looking statement.
For more information about Schnitzer Steel Industries, Inc. go to www.schnitzersteel.com.
| SCHNITZER STEEL INDUSTRIES, INC. | ||||||||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||
| August 31, | August 31, | August 31, | August 31, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||||
| REVENUES: | ||||||||||||||||||
| Metals Recycling Business: | ||||||||||||||||||
| Ferrous sales: | ||||||||||||||||||
| Processing | $ | 416,806 | $ | 258,738 | $ | 1,300,787 | $ | 801,223 | ||||||||||
| Trading | 84,560 | 128,697 | 381,066 | 330,296 | ||||||||||||||
| Nonferrous sales | 111,125 | 96,341 | 395,737 | 266,773 | ||||||||||||||
| Other sales | 3,185 | 3,464 | 11,681 | 8,491 | ||||||||||||||
| Total sales | 615,676 | 487,240 | 2,089,271 | 1,406,783 | ||||||||||||||
| Auto Parts Business | 74,322 | 63,989 | 266,354 | 218,130 | ||||||||||||||
| Steel Manufacturing Business | 117,101 | 103,867 | 424,550 | 386,610 | ||||||||||||||
| Intercompany sales eliminations | (58,579 | ) |
(50,470 |
) | (207,910 | ) | (156,808 | ) | ||||||||||
| Total | $ | 748,520 | $ |
604,626 |
$ | 2,572,265 | $ | 1,854,715 | ||||||||||
| INCOME (LOSS) FROM OPERATIONS: | ||||||||||||||||||
| Metals Recycling Business: | ||||||||||||||||||
| Processing | $ | 46,935 | $ | 59,556 | $ | 164,964 | $ | 125,559 | ||||||||||
| Trading | (897 | ) | 2,093 | 635 | 2,130 | |||||||||||||
| Auto Parts Business | 10,028 | 9,195 | 29,050 | 28,334 | ||||||||||||||
| Steel Manufacturing Business | 19,520 | 21,424 | 64,355 | 74,791 | ||||||||||||||
| Corporate expense | (14,218 | ) | (14,420 | ) | (45,684 | ) | (55,693 | ) | ||||||||||
| Intercompany eliminations |
1,585 |
(1,197 |
) | 243 | (57 | ) | ||||||||||||
| Total | $ |
62,953 |
$ |
76,651 |
$ | 213,563 | $ | 175,064 | ||||||||||
| NET INCOME | $ |
37,976 |
$ | 50,215 | $ | 131,334 | $ | 143,068 | ||||||||||
| BASIC EARNINGS PER SHARE | $ | 1.29 | $ | 1.63 | $ | 4.38 | $ | 4.68 | ||||||||||
| DILUTED EARNINGS PER SHARE | $ | 1.28 | $ | 1.62 | $ | 4.32 | $ | 4.65 | ||||||||||
| SHARE INFORMATION (THOUSANDS): | ||||||||||||||||||
| Basic shares outstanding | 29,388 | 30,754 | 29,997 | 30,597 | ||||||||||||||
| Diluted shares outstanding | 29,781 | 30,927 | 30,400 | 30,796 | ||||||||||||||
| SCHNITZER STEEL INDUSTRIES, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
| August 31, | August 31, | August 31, | August 31, | |||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| Revenues | $ | 748,520 | $ |
604,626 |
$ | 2,572,265 | $ | 1,854,715 | ||||||||
| Cost of goods sold | 634,052 | 485,816 | 2,178,113 | 1,526,990 | ||||||||||||
| Selling, general and administrative | 53,219 | 43,657 | 186,030 | 156,862 | ||||||||||||
|
(Income) from joint ventures |
(1,704 |
) |
(1,498 |
) |
(5,441 |
) |
(4,201 |
) |
||||||||
| Operating income |
62,953 |
76,651 |
213,563 | 175,064 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (1,994 | ) | (1,635 | ) | (8,213 | ) | (3,498 | ) | ||||||||
| Other income (expense), net |
1,021 |
1,990 |
3,615 | 60,123 | ||||||||||||
|
(973 |
) |
355 |
(4,598 | ) | 56,625 | |||||||||||
| Income before income taxes and minority interests |
61,980 |
77,006 |
208,965 |
231,689 | ||||||||||||
|
Income tax expense |
(23,366 | ) | (26,171 | ) | (75,333 | ) | (86,871 | ) | ||||||||
|
Income before minority interests and pre-acquisition interests |
38,614 |
50,835 |
133,632 | 144,818 | ||||||||||||
| Minority interests, net of tax | (638 | ) | (620 | ) | (2,298 | ) | (1,934 | ) | ||||||||
| Pre-acquisition interests, net of tax | - | - | - | 184 | ||||||||||||
| Net income | $ |
37,976 |
$ | 50,215 | $ | 131,334 | $ | 143,068 | ||||||||
| Basic earnings per share | $ | 1.29 | $ | 1.63 | $ | 4.38 | $ | 4.68 | ||||||||
| Diluted earnings per share | $ | 1.28 | $ | 1.62 | $ | 4.32 | $ | 4.65 | ||||||||
| Schnitzer Steel Industries, Inc. | ||||||||||||||||||||||
| Selected Operating Statistics | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| Total | Total | |||||||||||||||||||||
| Q1 FY07 | Q2 FY07 | Q3 FY07 | Q4 FY07 | FY07 | Q1 FY06 | Q2 FY06 | Q3 FY06 | Q4 FY06 | FY06 | |||||||||||||
| Metals Recycling Business | ||||||||||||||||||||||
| Ferrous Recycled Metal Sales Prices ($/LT)(1) | ||||||||||||||||||||||
| Domestic | $ | 219 | $ | 233 | $ | 293 | $ | 273 | $ | 256 | $ | 207 | $ | 203 | $ | 215 | $ | 238 | $ | 217 | ||
| Exports | 230 | 238 | 295 | 292 | 266 | 204 | 196 | 206 | 245 | 214 | ||||||||||||
| Total Processing | 226 | 237 | 294 | 287 | 263 | 205 | 198 | 210 | 243 | 215 | ||||||||||||
| Trading | 252 | 257 | 308 | 298 | 279 | 216 | 178 | 222 | 253 | 226 | ||||||||||||
| Ferrous Processing Sales Volume (LT)(2)(3) | ||||||||||||||||||||||
| Cascade | 191,090 | 151,383 | 185,281 | 176,768 | 704,522 | 154,096 | 148,036 | 174,833 | 190,971 | 667,936 | ||||||||||||
| Domestic | 155,970 | 174,752 | 199,587 | 191,250 | 721,559 | 58,343 | 158,177 | 176,339 | 130,164 | 523,023 | ||||||||||||
| Export | 521,200 | 816,683 | 643,031 | 884,104 | 2,865,018 | 336,712 | 605,386 | 534,966 | 621,182 | 2,098,246 | ||||||||||||
| Total Processed | 868,260 | 1,142,818 | 1,027,899 | 1,252,122 | 4,291,099 | 549,151 | 911,599 | 886,138 | 942,317 | 3,289,205 | ||||||||||||
| Ferrous Trading Sales Volume (LT)(3) | ||||||||||||||||||||||
| Trading | 320,018 | 276,220 | 362,305 | 253,281 | 1,211,824 | 306,716 | 154,387 | 351,173 | 459,323 | 1,271,599 | ||||||||||||
| Total Ferrous Sales Volume (LT)(2)(3) | 1,188,278 | 1,419,038 | 1,390,204 | 1,505,403 | 5,502,923 | 855,867 | 1,065,986 | 1,237,311 | 1,401,640 | 4,560,804 | ||||||||||||
| Nonferrous Sales Volume (pounds, in thousands)(3) | 79,729 | 90,140 |
108,149 |
105,068 |
383,086 |
50,035 | 71,800 | 91,610 | 88,165 | 301,610 | ||||||||||||
| Steel Manufacturing Business | ||||||||||||||||||||||
| Sales Prices ($/NT)(1)(2) | ||||||||||||||||||||||
| Average | $ | 546 | $ | 536 | $ | 596 | $ | 617 | $ | 575 | $ | 517 | $ |
521 |
$ |
522 |
$ |
550 |
$ | 528 | ||
| Sales Volume (NT) | ||||||||||||||||||||||
| Rebar | 98,491 | 111,136 | 125,515 | 116,482 | 451,624 | 98,101 | 89,114 | 103,623 | 98,765 | 389,603 | ||||||||||||
| Coiled Products | 51,823 | 50,134 | 40,407 | 50,483 | 192,847 | 48,716 | 57,061 | 66,093 | 61,504 | 233,374 | ||||||||||||
| Merchant Bar and Other | 19,281 | 16,031 | 16,505 | 16,670 | 68,487 | 19,241 | 18,540 | 20,783 | 21,188 | 79,752 | ||||||||||||
| Total | 169,595 | 177,301 | 182,427 | 183,635 | 712,958 | 166,058 | 164,715 | 190,499 | 181,457 | 702,729 | ||||||||||||
| Auto Parts Business | ||||||||||||||||||||||
| Number of self-service locations at end of quarter | 35 | 35 | 35 | 35 | 35 | 30 | 31 | 32 | 34 | 34 | ||||||||||||
| Number of full-service sites at end of quarter (4) | 17 | 17 | 17 | 17 | 17 | 19 | 18 | 18 | 17 | 17 | ||||||||||||
| (1) Price information is shown after a reduction for the cost of freight incurred to deliver the product to the customer. | ||||||||||||||||||||||
| (2) Includes sales to the Steel Manufacturing Business for all quarters. | ||||||||||||||||||||||
| (3) The Company elected to consolidate results of the businesses formed from the Hugo Neu Corporation separation agreement and Regional Recycling as though the transactions had occurred at the beginning of the fiscal year. | ||||||||||||||||||||||
| (4) Reflects the addition of Greenleaf Auto Recyclers to the Auto Parts Business in the first quarter of 2006. | ||||||||||||||||||||||
| SCHNITZER STEEL INDUSTRIES, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (Unaudited, in thousands, except per share amounts) | ||||||
| August 31, 2007 | August 31, 2006 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 13,410 | $ | 33,081 | ||
| Accounts receivable, net | 170,212 | 118,839 | ||||
| Inventories | 258,568 | 263,583 | ||||
| Other current assets | 19,286 | 23,241 | ||||
| Total current assets | 461,476 | 438,744 | ||||
| Property, plant and equipment, net | 383,910 | 312,907 | ||||
| 306,028 | ||||||
| Goodwill and other assets | 293,073 | |||||
| Total assets | $ | 1,151,414 | $ | 1,044,724 | ||
| Liabilities and Shareholders’ Equity | ||||||
| Current liabilities: | ||||||
| Short-term borrowings | $ | 20,275 | $ | 100 | ||
| Other current liabilities | 171,914 | 151,038 | ||||
| Total current liabilities | 192,189 | 151,138 | ||||
| Long-term debt | 124,079 | 102,829 | ||||
| Other long-term liabilities | 64,709 | 51,525 | ||||
| Minority interests | 5,373 | 5,133 | ||||
| Shareholders’ equity | 765,064 | 734,099 | ||||
| Total liabilities and shareholders’ equity | $ | 1,151,414 | $ | 1,044,724 | ||