AMR’s Ferrous Sales Volumes Up 15% and
Nonferrous Sales Volumes Up 18% Year-Over-Year
CSS Delivers Best First Quarter Since
2008
Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) today reported
results for its first quarter of fiscal 2019 ended
November 30, 2018. The Company reported earnings per share
from continuing operations of $0.57 and adjusted earnings per share
of $0.58. In the first quarter of fiscal 2018, the Company reported
earnings per share from continuing operations of $0.64 and adjusted
earnings per share of $0.63. For a reconciliation of the adjusted
results to U.S. GAAP, see the Non-GAAP Financial Measures provided
after the financial statements in this document.
Auto and Metals Recycling (AMR) achieved operating income of $23
million, or $25 per ferrous ton, compared to operating income in
the first quarter of the prior year of $35 million, or $44 per
ferrous ton. AMR’s year-over-year performance included benefits
from 15% higher ferrous sales volumes and 18% higher nonferrous
sales volumes, which were more than offset by operating margin
compression resulting primarily from a 19% decline in average net
selling prices for nonferrous products that outpaced the reduction
in purchase costs for raw materials.
Cascade Steel and Scrap (CSS) achieved first quarter operating
income of $12 million, an increase of 41% year-over-year. CSS’s
operating performance improvement was driven primarily by a 25%
year-over-year increase in finished steel average net selling
prices, which significantly outpaced the increase in the cost of
steel-making raw materials. Finished steel sales volumes were 6%
lower year-over-year primarily due to lower production resulting
from the combination of a temporary disruption to a major external
natural gas pipeline and downtime related to the implementation of
mill equipment upgrades aimed at improving productivity.
In the first quarter of fiscal 2019, consolidated financial
performance included Corporate expense of $12 million, a decrease
of $4 million from the prior year first quarter, which had included
a charge for a legacy environmental liability of $4 million.
“In challenging market conditions that saw a significant decline
in the net selling prices for our nonferrous products, AMR
delivered solid operating performance with significant
year-over-year improvement in ferrous and nonferrous volumes,
demonstrating the benefits of our sales diversification strategy
and our commercial initiatives to increase supply volumes. Looking
forward, we are expanding the scope of our productivity initiatives
aimed at improving AMR’s operating margins in the current market
environment, while continuing to invest in advanced nonferrous
technologies to support our strategic objectives to lower
processing costs, increase recovery rates, and further develop our
product optionality so we continue to meet our customers’ needs,”
commented Tamara Lundgren, President and Chief Executive Officer.
“CSS continued to deliver excellent results, reflecting a 41%
year-over-year increase in operating income, underpinned by
significant operating margin expansion through higher steel prices
and improved productivity. Our strong balance sheet provides us
with the ability to invest in capital projects, while continuing to
return capital to our shareholders through both our share
repurchases and quarterly dividend.”
Summary Results ($ in
millions, except per share amounts)
Quarter 1Q19
1Q18 Change 4Q18 Change Revenues $ 564
$ 483 17 % $ 670 (16 )% Operating income $ 23 $ 26 (14 )% $
38 (40 )% Other asset impairment charges (recoveries), net — — NM 1
NM Restructuring charges and other exit-related activities — — NM
(1 ) NM Recoveries related to the resale or modification of certain
previously contracted shipments — — NM — NM
Adjusted operating income(1) $ 23 $ 26 (12 )% $ 38 (39 )%
Net income attributable to SSI $ 16 $ 18 (12 )% $ 60 (73 )%
Net income from continuing operations attributable to SSI $ 16 $ 18
(12 )% $ 59 (73 )% Adjusted net income from continuing
operations attributable to SSI(1) $ 16 $ 18 (9 )% $ 59 (72 )%
Diluted earnings per share attributable to SSI $ 0.57 $ 0.64
(11 )% $ 2.09 (73 )% Diluted earnings per share from
continuing operations attributable to SSI $ 0.57 $ 0.64 (11 )% $
2.08 (72 )% Adjusted diluted earnings per share from
continuing operations attributable to SSI(1) $ 0.58 $ 0.63 (8 )% $
2.06 (72 )% (1) See Non-GAAP Financial Measures for
reconciliation to U.S. GAAP. NM = Not Meaningful
Auto and Metals Recycling
Summary of Auto and Metals Recycling Results ($ in millions,
except selling prices and data per ton; Fe volumes 000s long tons;
NFe volumes Ms lbs)
Quarter 1Q19
1Q18 Change 4Q18
Change Total revenues $ 436 $ 398 10 % $ 532
(18 )% Ferrous revenues $ 299 $ 255 17 % $ 362 (17 )%
Ferrous volumes 919 797 15 % 1,032 (11 )% Avg. net ferrous sales
prices ($/LT)(1) $ 306 $ 292 5 % $ 321 (5 )% Nonferrous
revenues $ 104 $ 110 (6 )% $ 134 (22 )% Nonferrous volumes(2) 153
129 18 % 167 (8 )% Avg. net nonferrous sales prices ($/lb)(1)(2) $
0.59 $ 0.73 (19 )% $ 0.69 (14 )% Cars purchased for retail
(000s) 94 108 (13 )% 105 (10 )% Operating income $ 23 $ 35
(35 )% $ 34 (32 )% Operating income per Fe ton $ 25 $ 44 (43 )% $
33 (24 )% Adjusted operating income(3) $ 23 $ 35 (34 )% $ 34
(33 )% Adjusted operating income per Fe ton $ 25 $ 44 (42 )% $ 33
(25 )%
(1)
Sales prices are shown net of freight. (2) Excludes platinum
group metals (PGMs) in catalytic converters. (3) See Non-GAAP
Financial Measures for reconciliation to U.S. GAAP.
Volumes: Ferrous sales volumes in the first quarter
increased 15% compared to the prior year first quarter, primarily
due to stronger domestic demand and commercial initiatives to
increase our supply flows. Ferrous sales volumes decreased 11%
sequentially primarily due to seasonality. Nonferrous sales volumes
were 18% higher compared to the prior year first quarter, mainly
due to higher supply flows and 8% lower sequentially, primarily due
to seasonality.
Export customers accounted for 63% of total ferrous sales
volumes. Our products, including ferrous, nonferrous and recycled
auto parts, were shipped to 22 countries in the first quarter of
fiscal 2019, with Bangladesh, Turkey and Taiwan representing the
top export destinations for ferrous shipments.
Pricing: Average ferrous net selling prices increased $14
per ton, or 5%, compared to the prior year first quarter, and were
down $15 per ton, or 5%, sequentially. Average nonferrous net
selling prices decreased 19% compared to the prior year first
quarter and decreased 14% sequentially.
Margins: Operating income was $23 million in the first
quarter, a decrease of $12 million, or 35%, compared to the prior
year first quarter and $11 million, or 32%, lower sequentially.
Operating income per ferrous ton of $25 represented a decrease of
$19 per ton or 43% from the prior year first quarter and a
sequential decrease of $8 per ton, or 24%. The margin compression
in the first quarter of fiscal 2019 resulted primarily from the
significant decline in selling prices for zorba and other
nonferrous products that outpaced the reduction in purchase costs
for raw materials, more than offsetting the benefits of operating
leverage from higher ferrous and nonferrous sales volumes, and
higher net ferrous selling prices. Selling, general and
administrative (“SG&A”) expenses were $4 million higher than in
the prior year as a result of higher employee-related expenses and
$1 million in environmental-related expenses, and consistent
sequentially. First quarter operating results include a neutral
impact from average inventory accounting, consistent with the first
quarter of the prior year and compared to an adverse impact of $2
million in the fourth quarter of fiscal 2018.
Cascade Steel and Scrap
Summary of Cascade Steel and Scrap Results ($
in millions, except selling prices)
Quarter
1Q19 1Q18 Change
4Q18 Change Steel revenues $ 101 $ 80
26 % $ 102 — % Recycling revenues 29 10 205 % 42
(31 )% Total revenues $ 130 $ 90 45 % $ 144
(9 )% Operating income $ 12 $ 8 41 % $ 14 (12 )%
Finished steel average net sales price ($/ST) $ 747 $ 599 25
% $ 741 1 % Finished steel sales volumes (000s ST) 119 127 (6 )%
127 (6 )% Rolling mill utilization 87 % 95 % (8 )% 83 % 5 %
(1) Price information is shown after netting the cost
of freight incurred to deliver the product to the customer. NM =
Not Meaningful
Volumes: Finished steel sales volumes in the first
quarter were 6% lower year-over-year and sequentially, primarily
due to lower production in the first quarter of fiscal 2019 caused
by a combination of a temporary disruption to a major external
natural gas pipeline and downtime related to the implementation of
mill equipment upgrades aimed at improving productivity. Recycling
revenues were significantly higher year-over-year as a result of
increased ferrous export sales due to increased supply flows, but
down sequentially primarily due to seasonality.
Pricing: Average net selling prices for finished steel
products increased 25% from the prior year first quarter and 1%
sequentially, reflecting the impacts of reduced pressure from steel
imports and higher steel-making raw material and other input
costs.
Margins: Operating income for the first quarter of fiscal
2019 was $12 million, an improvement of 41% from the prior year
first quarter. The improved year-over-year performance reflected an
expansion in finished steel margins resulting from higher average
net selling prices which significantly outpaced the increase in the
cost of steel-making raw materials and offset the impact of lower
finished steel sales volumes. Sequentially, operating income was $2
million lower driven primarily by the impact on sales volumes of
the lower production and a $1 million adverse impact from the
natural gas supply disruption.
Corporate Items
In the first quarter of fiscal 2019, consolidated financial
performance included Corporate expense of $12 million, a decrease
of $4 million from the prior year first quarter, which included a
charge for a legacy environmental liability of $4 million.
The Company’s effective tax rate for the first quarter of fiscal
2019 was an expense of 19.8%, which includes a discrete tax benefit
associated with share-based compensation.
Total debt at the end of the first quarter of fiscal 2019 was
$169 million, and debt, net of cash, was $157 million compared to
$107 million and $103 million, respectively, at the end of the
fourth quarter of fiscal 2018 (refer to Non-GAAP Financial Measures
provided after the financial statements in this document). The
first quarter of fiscal 2019 reflected negative operating cash flow
of $12 million, as positive cash flows associated with
profitability were more than offset by an increase in working
capital due to the timing of the annual cash payment of incentive
compensation accrued in fiscal 2018 and the impact of the timing of
shipments on the collection of receivables.
Pursuant to its ongoing authorized share repurchase program, the
Company repurchased a total of 150,000 shares of its Class A common
stock in open market transactions during the first quarter. The
Company also returned capital to shareholders through its 99th
consecutive quarterly dividend.
Analysts’ Conference Call: First Quarter of Fiscal
2019
A conference call and slide presentation to discuss results will
be held today, January 9, 2019, at 11:30 a.m. EST hosted by
Tamara Lundgren, President and Chief Executive Officer, and Richard
Peach, Senior Vice President, Chief Financial Officer, and Chief of
Corporate Operations. The call and the slides will be webcast and
accessible on the Company’s website under Company > Investors
> Event Calendar at www.schnitzersteel.com/events.
Summary financial data is provided in the following pages. The
slides and related materials will be available prior to the call on
the website.
About Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc. is one of the largest
manufacturers and exporters of recycled metal products in North
America with operating facilities located in 23 states, Puerto Rico
and Western Canada. Schnitzer 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 auto parts stores with approximately 5 million annual
retail visits. The Company’s steel manufacturing operations produce
finished steel products, including rebar, wire rod and other
specialty products. The Company began operations in 1906 in
Portland, Oregon.
SCHNITZER STEEL INDUSTRIES, INC. FINANCIAL
HIGHLIGHTS (in thousands) (Unaudited)
For the Three Months Ended
November 30,2018
August 31,2018
November 30,2017
REVENUES: Auto and Metals Recycling: Ferrous revenues
$ 298,812 $ 362,051 $ 254,983 Nonferrous revenues 104,181 133,758
110,343 Retail and other revenues 33,419 35,707
32,728 Total Auto and Metals Recycling revenues 436,412
531,516 398,054 Cascade Steel and Scrap: Steel revenues
101,337 101,846 80,446 Recycling revenues 29,049 42,021
9,538 Total Cascade Steel and Scrap revenues 130,386
143,867 89,984 Intercompany sales eliminations (2,778 ) (5,806 )
(4,759 ) Total revenues $ 564,020 $ 669,577 $ 483,279
OPERATING INCOME: AMR operating income $
23,017 $ 33,836 $ 35,172 CSS operating income $ 11,918 $ 13,604 $
8,476 Consolidated operating income $ 22,689 $ 37,973 $ 26,423
Adjusted AMR operating income(1) $ 23,080 $ 34,368 $ 34,755
Adjusted CSS operating income(1) 11,918 13,604 8,388
Adjusted segment operating income(1) 34,998 47,972 43,143
Corporate expense (12,205 ) (10,928 ) (16,644 ) Intercompany
eliminations 161 539 (481 ) Adjusted operating
income(1) 22,954 37,583 26,018 Other asset impairment (charges)
recoveries, net (63 ) (532 ) 88 Restructuring charges and other
exit-related activities (202 ) 922 (100 ) Recoveries related to the
resale or modification of certain previously contracted shipments —
— 417 Total operating income $ 22,689 $
37,973 $ 26,423 (1) See Non-GAAP Financial
Measures for reconciliation to U.S. GAAP.
SCHNITZER STEEL INDUSTRIES, INC. CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (In thousands) (Unaudited) For the
Three Months Ended
November 30,2018
August 31,2018
November 30,2017
Revenues $ 564,020 $ 669,577 $ 483,279 Cost of
goods sold 490,132 582,608 406,251 Selling, general and
administrative 51,419 50,011 51,043 (Income) from joint ventures
(485 ) (625 ) (450 ) Other asset impairment charges (recoveries),
net 63 532 (88 ) Restructuring charges and other exit-related
activities 202 (922 ) 100 Operating income 22,689
37,973 26,423 Interest expense (1,906 ) (2,160 ) (2,059 ) Other
income, net 23 495 849 Income from continuing
operations before income taxes 20,806 36,308 25,213 Income tax
(expense) benefit (4,116 ) 23,620 (5,957 ) Income from
continuing operations 16,690 59,928 19,256 Income (loss) from
discontinued operations, net of tax (72 ) 273 (35 ) Net
income 16,618 60,201 19,221 Net income attributable to
noncontrolling interests (430 ) (532 ) (857 ) Net income
attributable to SSI $ 16,188 $ 59,669 $ 18,364
Net income per share attributable to SSI: Basic: Income per
share from continuing operations attributable to SSI $ 0.59 $ 2.17
$ 0.66 Income (loss) per share from discontinued operations
attributable to SSI — 0.01 — Net income per
share attributable to SSI $ 0.59 $ 2.18 $ 0.66
Diluted: Income per share from continuing operations attributable
to SSI $ 0.57 $ 2.08 $ 0.64 Income (loss) per share from
discontinued operations attributable to SSI — 0.01 —
Net income per share attributable to SSI $ 0.57 $
2.09 $ 0.64 Weighted average number of common
shares: Basic 27,505 27,427 27,695 Diluted 28,364 28,524 28,662
Dividends declared per common share $ 0.1875 $ 0.1875 $ 0.1875
SCHNITZER STEEL INDUSTRIES, INC. SELECTED
OPERATING STATISTICS (Unaudited)
1Q19
SSI Total Volumes(1) Total ferrous volumes (LT)
1,079,705 Total nonferrous volumes (000s LB) 166,977
Auto and
Metals Recycling Ferrous selling prices ($/LT)(2)
Domestic $ 290 Export $ 314 Average $ 306
Ferrous
sales volume (LT) Domestic 339,879 Export 578,976
Total 918,855
Nonferrous average price
($/LB)(2)(3) $ 0.59
Nonferrous sales volume (000s
LB)(3) 152,869
Car purchase volume
(000s)(4) 94
Auto stores at end of quarter 51
Cascade Steel and Scrap Finished steel average sales
price ($/ST)(2) $ 747
Sales volume (ST) Rebar
81,470 Coiled products 37,418 Merchant bar and other 316
Finished steel products sold 119,204
Rolling mill
utilization(5) 87 % (1) Ferrous and nonferrous
volumes sold externally by AMR and CSS and delivered to our steel
mill for finished steel production. (2) Price information is shown
after a reduction for the cost of freight incurred to deliver the
product to the customer. (3) Excludes PGM metals in catalytic
converters. (4) Cars purchased by auto parts stores only. (5)
Rolling mill utilization is based on effective annual production
capacity under current conditions of 580 thousand tons of finished
steel products.
SCHNITZER STEEL INDUSTRIES,
INC. SELECTED OPERATING STATISTICS (Unaudited)
Fiscal 1Q18
2Q18 3Q18 4Q18
2018 SSI Total Volumes(1) Total ferrous
volumes (LT) 912,145 1,062,260 1,118,743 1,205,803 4,298,951 Total
nonferrous volumes (000s LB) 141,046 144,024 162,667 188,359
636,096
Auto and Metals Recycling Ferrous selling prices
($/LT)(2) Domestic $ 259 $ 278 $ 314 $ 303 $ 291 Export
$ 306 $ 327 $ 347
$ 328 $ 328 Average $ 292 $ 314 $ 337 $ 321 $
317
Ferrous sales volume (LT) Domestic 237,464 239,571
293,323 314,974 1,085,332 Export 559,154
656,738 690,019 716,834
2,622,745 Total 796,618 896,309 983,342 1,031,808 3,708,077
Nonferrous average price ($/LB)(2)(3) $ 0.73 $
0.72 $ 0.74 $ 0.69 $ 0.72
Nonferrous sales volume (000s
LB)(3) 129,137 129,549 146,043 166,976 571,705
Car
purchase volume (000s)(4) 108 102 109 105 424
Auto
stores at end of quarter 53 53 53 52 52
Cascade Steel and
Scrap Finished steel average sales price
($/ST)(2) $ 599 $ 619 $ 703 $ 741 $ 666
Sales volume
(ST) Rebar 84,243 79,718 91,603 81,182 336,746 Coiled products
40,928 43,056 46,673 43,878 174,535 Merchant bar and other
2,049 1,937 1,945 1,950
7,881 Finished steel products sold 127,220
124,711 140,221 127,010 519,162
Rolling mill
utilization(5) 95 % 83 % 91 % 83 % 88 % (1)
Ferrous and nonferrous volumes sold externally by AMR and CSS and
delivered to our steel mill for finished steel production. (2)
Price information is shown after a reduction for the cost of
freight incurred to deliver the product to the customer. (3)
Excludes PGM metals in catalytic converters. (4) Cars purchased by
auto parts stores only. (5) Rolling mill utilization is based on
effective annual production capacity under current conditions of
580 thousand tons of finished steel products.
SCHNITZER STEEL INDUSTRIES, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (In thousands) (Unaudited) November 30,
2018 August 31, 2018
Assets
Current assets: Cash and cash equivalents $ 11,216 $ 4,723 Accounts
receivable, net 193,439 169,418 Inventories 200,562 205,877 Other
current assets 41,455 68,341 Total current assets 446,672 448,359
Property, plant and equipment, net 422,686 415,711
Goodwill and other assets 239,846 240,747 Total
assets $ 1,109,204 $ 1,104,817
Liabilities and
Equity
Current liabilities: Short-term borrowings $ 1,156 $ 1,139 Other
current liabilities 192,872 253,538 Total current liabilities
194,028 254,677 Long-term debt 167,394 106,237 Other
long-term liabilities 71,799 73,793 Equity: Total Schnitzer
Steel Industries, Inc. (“SSI”) shareholders’ equity 671,914 666,078
Noncontrolling interests 4,069 4,032 Total equity 675,983 670,110
Total liabilities and equity $ 1,109,204 $ 1,104,817
Non-GAAP Financial Measures
This press release contains performance based on adjusted net
income and adjusted diluted earnings per share from continuing
operations attributable to SSI and adjusted consolidated, AMR and
CSS operating income, which are non-GAAP financial measures as
defined under SEC rules. As required by SEC rules, we have provided
reconciliations of these measures for each period discussed to the
most directly comparable U.S. GAAP measure. Management believes
that presenting these non-GAAP financial measures provides a
meaningful presentation of our results from business operations
excluding adjustments for other asset impairment charges net of
recoveries, restructuring charges and other exit-related
activities, recoveries related to the resale or modification of
certain previously contracted shipments, and the income tax expense
(benefit) allocated to these adjustments, items which are not
related to underlying business operational performance, and
improves the period-to-period comparability of our results from
business operations. Adjusted operating results in fiscal 2015
excluded the impact from the resale or modification of the terms,
each at significantly lower prices due to sharp declines in selling
prices, of certain previously contracted bulk shipments for
delivery during fiscal 2015. Recoveries resulting from settlements
with the original contract parties, which began in the third
quarter of fiscal 2016 and concluded in the first quarter of fiscal
2018, are reported within selling, general and administrative
expense in the quarterly statements of income and are also excluded
from the measures. Further, 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.
($ in millions)
Quarter 1Q19
1Q18 4Q18 Consolidated operating
income: Operating income $ 23 $ 26 $ 38 Other asset impairment
charges (recoveries), net — — 1 Restructuring charges and other
exit-related activities — — (1 ) Recoveries related to the resale
or modification of certain previously contracted shipments —
— — Adjusted consolidated operating income $ 23
$ 26 $ 38
AMR operating income:
Operating income $ 23 $ 35 $ 34 Other asset impairment charges
(recoveries), net — — 1 Recoveries related to the resale or
modification of certain previously contracted shipments — —
— Adjusted AMR operating income(1) $ 23 $ 35
$ 34
CSS operating income: Operating
income $ 12 $ 8 $ 14 Other asset impairment charges (recoveries),
net — — — Adjusted CSS operating income $ 12
$ 8 $ 14 (1) May not foot due to
rounding.
Net income from continuing operations
attributable to SSI ($ in millions)
Quarter
1Q19 1Q18 4Q18 Net
income from continuing operations attributable to SSI $ 16 $ 18 $
59 Other asset impairment charges (recoveries), net — — 1
Restructuring charges and other exit-related activities — — (1 )
Recoveries related to the resale or modification of certain
previously contracted shipments — — — Income tax expense (benefit)
allocated to adjustments(1) — — — Adjusted net
income from continuing operations attributable to SSI $ 16 $
18 $ 59 (1) Income tax allocated to the
aggregate adjustments reconciling reported and adjusted net income
from continuing operations attributable to SSI is determined based
on a tax provision calculated with and without the adjustments.
Diluted earnings per share from continuing
operations attributable to SSI ($ per share)
Quarter 1Q19 1Q18
4Q18 Diluted earnings per share from continuing operations
attributable to SSI $ 0.57 $ 0.64 $ 2.08 Other asset impairment
charges (recoveries), net — — 0.02 Restructuring charges and other
exit-related activities 0.01 — (0.03 ) Recoveries related to the
resale or modification of certain previously contracted shipments —
(0.01 ) — Income tax expense (benefit) allocated to adjustments(1)
— — (0.01 ) Adjusted diluted earnings per share from
continuing operations attributable to SSI $ 0.58 $ 0.63
$ 2.06 (1) Income tax allocated to the
aggregate adjustments reconciling reported and adjusted diluted
earnings per share from continuing operations attributable to SSI
is determined based on a tax provision calculated with and without
the adjustments.
Debt, net of
cash ($ in thousands)
November 30, 2018 August 31,
2018 Short-term borrowings $ 1,156 $ 1,139 Long-term debt, net
of current maturities 167,394 106,237 Total debt 168,550 107,376
Less: cash and cash equivalents 11,216 4,723 Total debt, net of
cash $ 157,334 $ 102,653
Forward-Looking Statements
Statements and information included in this press release that
are not purely historical are forward-looking statements within the
meaning of Section 21E 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 in this press
release to “we,” “our,” “us,” “Company,” “Schnitzer,” and “SSI”
refer to Schnitzer Steel Industries, Inc. and its consolidated
subsidiaries.
Forward-looking statements in this press release include
statements regarding future events or our expectations, intentions,
beliefs and strategies regarding the future, which may include
statements regarding trends, cyclicality and changes in the markets
we sell into; the Company’s outlook, growth initiatives or expected
results or objectives, including pricing, margins, sales volumes
and profitability; strategic direction or goals; targets; changes
to manufacturing and production processes; the cost of and the
status of any agreements or actions related to our compliance with
environmental and other laws; expected tax rates, deductions and
credits and the impact of federal tax reform; the impact of
tariffs, quotas and other trade actions; 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;
obligations under our retirement plans; benefits, savings or
additional costs from business realignment, cost containment and
productivity improvement programs; and the adequacy of
accruals.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, and often contain words such
as “outlook,” “target,” “aim,” “believes,” “expects,”
“anticipates,” “intends,” “assumes,” “estimates,” “evaluates,”
“may,” “will,” “should,” “could,” “opinions,” “forecasts,”
“projects,” “plans,” “future,” “forward,” “potential,” “probable,”
and similar expressions. However, the absence of these words or
similar expressions does not mean that a statement is not
forward-looking.
We may make other forward-looking statements from time to time,
including in reports filed with the Securities and Exchange
Commission, press releases, presentations and on 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” in Part
I of our most recent Annual Report on Form 10-K, as supplemented by
our subsequently filed Quarterly Reports on Form 10-Q. Examples of
these risks include: potential environmental cleanup costs related
to the Portland Harbor Superfund site or other locations; the
cyclicality and impact of general economic conditions; changing
conditions in global markets including the impact of tariffs,
quotas and other trade actions; volatile supply and demand
conditions affecting prices and volumes in the markets for both our
products and raw materials we purchase; imbalances in supply and
demand conditions in the global steel industry; the impact of
goodwill impairment charges; the impact of long-lived asset and
equity investment impairment charges; inability to achieve or
sustain the benefits from productivity, cost savings and
restructuring initiatives; difficulties associated with
acquisitions and integration of acquired businesses; customer
fulfillment of their contractual obligations; increases in the
relative value of the U.S. dollar; 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 consolidation in the steel industry;
inability to realize expected benefits from investments in
technology; freight rates and the availability of transportation;
the impact of equipment upgrades, equipment failures and facility
damage on production; product liability claims; the impact of legal
proceedings and legal compliance; the adverse impact of climate
change; the impact of not realizing deferred tax assets; the impact
of tax increases and changes in tax rules; the impact of one or
more cybersecurity incidents; environmental compliance costs and
potential environmental liabilities; inability to obtain or renew
business licenses and permits or renew facility leases; compliance
with climate change and greenhouse gas emission laws and
regulations; reliance on employees subject to collective bargaining
agreements; and the impact of the underfunded status of
multiemployer plans in which we participate.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190109005232/en/
Investor Relations:Michael Bennett(503)
323-2811mcbennett@schn.com
Company
Info:www.schnitzersteel.comir@schn.com
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