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UPDATE 1-Schnitzer Steel Q2 profit beats Street view
April 7, 2010 / 9:32 PM / in 8 years

UPDATE 1-Schnitzer Steel Q2 profit beats Street view

* Q2 EPS $0.62 from cont ops vs est $0.48

* Revenue up 39 pct to $564.3 mln

April 7 (Reuters) - Schnitzer Steel Industries Inc (SCHN.O) posted a better-than-expected second-quarter profit, mainly helped by strong demand for recycled metals.

For the second quarter ended Feb 28, Schnitzer posted a net profit of $29 million, or 62 cents a share, compared with a net loss of $14 million, or 18 cents a share, a year ago.

Quarterly revenue rose 39 percent to $564.3 million.

Analysts on average expected the company to earn 48 cents a share, before special items, on revenue of $517.8 million, according to Thomson Reuters I/B/E/S.

“The steady improvement in demand, which we anticipated in the first quarter, enabled us to achieve a 55 percent increase in metals recycling revenues over the first quarter of fiscal 2010,” Chief Executive Tamara Lundgren said in a statement.

Schnitzer expects recycled metals sales volumes, pricing and margins to improve slightly in the third quarter, compared with the second quarter of fiscal 2010.

However, the company sees uncertainty in auto parts business in the third quarter.

Shares of the Portland, Oregon-based company fell 10 cents to $54.32 in after-market trade Wednesday. (Reporting by Vinay Sarawagi in Bangalore; Editing by Ratul Ray Chaudhuri)

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