Best Fourth Quarter and Full Year Operating
Performance in a Decade
Acquisition of Columbus Recycling Assets
Completed
Schnitzer Board Declares Quarterly
Dividend
Schnitzer Steel Industries, Inc. (NASDAQ: SCHN)
today reported results for its fourth quarter and fiscal year ended
August 31, 2021.
Fourth Quarter and Fiscal 2021 Highlights
- Diluted earnings per share from continuing operations of $1.43
in the fourth quarter of fiscal 2021, compared to $0.14 in the
fourth quarter of fiscal 2020. Diluted earnings per share from
continuing operations of $5.66 in fiscal 2021, compared to a loss
of $(0.15) per share in fiscal 2020.
- Adjusted diluted earnings per share from continuing operations
in the fourth quarter of fiscal 2021 of $1.81, excluding, among
other items, charges of $0.34 per share related to legacy
environmental matters. Comparatively, adjusted diluted earnings per
share were $0.23 in the fourth quarter of fiscal 2020. Adjusted
diluted earnings per share from continuing operations of $6.13 in
fiscal 2021, compared to $0.43 in fiscal 2020.
- Net income of $44 million in the fourth quarter of fiscal 2021,
compared to $5 million in the fourth quarter of fiscal 2020. Net
income of $170 million in fiscal 2021, compared to a net loss of
$(2) million in fiscal 2020.
- Adjusted EBITDA of $80 million in the fourth quarter of fiscal
2021, compared to $28 million in the fourth quarter of fiscal 2020.
Adjusted EBITDA of $289 million in fiscal 2021, compared to $85
million in fiscal 2020.
The Company’s performance during the fourth quarter of fiscal
2021 benefited from strong global market conditions for recycled
metals, with average selling prices reaching multi-year highs and
sales volumes for its ferrous and nonferrous products increasing
year over year. Average selling prices for finished steel products
also continued to increase during the quarter to their highest
level in more than a decade, benefiting from the continued strength
in West Coast demand. The Company began ramping up production at
its steel mill ahead of schedule in mid-August following
substantial completion of the replacement and repair of property
and equipment lost and damaged due to a fire in May 2021. Finished
steel sales volumes decreased significantly year over year as a
result of the production outage.
For the full fiscal year, the Company’s improved performance was
primarily driven by higher average selling prices for ferrous,
nonferrous and finished steel products, benefits of operating
leverage from significantly higher ferrous and nonferrous volumes
year over year and execution of productivity improvements and
commercial initiatives supported by the implementation of the One
Schnitzer operating platform.
Tamara Lundgren, Chairman and Chief Executive Officer stated,
“Our fourth quarter and fiscal 2021 results reflect our best
operating performance in a decade. I am proud of what our team
accomplished during a year in which we faced challenges from the
COVID-19 pandemic, logistics constraints and labor shortages. We
stayed focused on our sustainability framework of People, Planet
and Profit, delivering strong financial performance, strengthening
our core operations through productivity initiatives, progressing
strategic investments in advanced metal recovery technologies and
increasing our sales volumes. Our efforts led to strong operating
cash flow, which enabled us to reduce our debt to the lowest level
since 2005, while continuing to return capital to shareholders and
invest in our strategic initiatives to deliver growth.”
Ms. Lundgren continued, “We recently completed the acquisition
of eight metals recycling facilities from Columbus Recycling, a
leading provider of ferrous and nonferrous recycled metal products
and services in the southeastern U.S. Combined with our existing
facilities, this acquisition increases Schnitzer’s footprint to 22
operating facilities in the Southeast, a region that is expected to
see a significant increase in electric arc furnace steelmaking
capacity in the coming years. This brings our total number of
operating facilities to 102 across North America. We also continued
to advance the implementation of our advanced metal recovery
technology, including the ramp-up of production at new systems in
California and Georgia during the quarter. Extracting more
nonferrous metals from our shredding activities is a significant
value-added process and is directly aligned with global
decarbonization and demand trends,” she added.
Summary Results
($ in millions, except per share
amounts)
Quarter
Year
4Q21
3Q21
4Q20
2021
2020
Revenues
$
846
$
821
$
465
$
2,759
$
1,712
Gross margin (total revenues less cost of
goods sold)
$
126
$
142
$
62
$
453
$
209
Gross margin (%)
14.9
%
17.4
%
13.4
%
16.4
%
12.2
%
Selling, general and administrative
expense
$
77
$
62
$
49
$
242
$
188
Net income (loss)
$
44
$
65
$
5
$
170
$
(2
)
Net income (loss) per ferrous ton
$
38
$
54
$
4
$
39
$
(1
)
Diluted earnings (loss) per share from
continuing operations attributable to SSI shareholders
Reported
$
1.43
$
2.16
$
0.14
$
5.66
$
(0.15
)
Adjusted(1)
$
1.81
$
2.20
$
0.23
$
6.13
$
0.43
Adjusted EBITDA(1)
$
80
$
97
$
28
$
289
$
85
Adjusted EBITDA per ferrous ton(1)
$
69
$
80
$
27
$
66
$
22
Ferrous sales volumes (LT, in
thousands)
1,163
1,215
1,063
4,408
3,954
Avg. net ferrous sales prices
($/LT)(2)
$
449
$
400
$
236
$
381
$
237
Nonferrous sales volumes (pounds, in
millions)(3)
164
156
159
593
551
Avg. nonferrous sales prices
($/pound)(2)(3)
$
1.01
$
0.97
$
0.56
$
0.88
$
0.55
Finished steel average net sales price
($/ST)(2)
$
920
$
802
$
618
$
737
$
630
Finished steel sales volumes (ST, in
thousands)
65
153
139
488
505
Rolling mill utilization (%)
28
%
98
%
96
%
78
%
86
%
LT = Long Ton, which is equivalent to 2,240 pounds ST = Short Ton,
which is equivalent to 2,000 pounds
(1)
See Non-GAAP Financial Measures for
reconciliation to U.S. GAAP.
(2)
Price information is shown after netting
the cost of freight incurred to deliver the product to the
customer.
(3)
Nonferrous sales volumes and average
nonferrous prices excludes platinum group metals (PGMs) in
catalytic converters.
Fourth Quarter Fiscal 2021 Financial Review and
Analysis
The Company delivered its best fiscal fourth quarter operating
performance since fiscal 2011. Net income per ferrous ton was $38
and adjusted EBITDA per ferrous ton was $69 in the fourth quarter,
a strong year over year increase from $4 and $27, respectively. The
benefits from increased average selling prices for ferrous and
nonferrous recycled metals, as well as higher sales volumes for
ferrous and nonferrous products year over year, were the primary
drivers of the expansion in operating margins. The Company’s
improved performance compared to the prior year quarter also
reflected benefits from the execution of commercial initiatives and
productivity improvements, notwithstanding the adverse impact of
the fire to the steel mill contribution. In the fourth quarter, the
Company recognized initial insurance recoveries of $10 million
primarily related to the repair and replacement of property and
equipment lost and damaged in the fire. Selling, general and
administrative (SG&A) expense increased primarily due to legacy
environmental-related expenses of $13 million not associated with
ongoing operations and higher employee-related expenses mainly
associated with incentive compensation related to higher Company
performance. Fourth quarter results also included benefits from
average inventory accounting of approximately $4 per ferrous ton
compared to benefits of $2 in the fourth quarter of the prior
year.
Compared to the fourth quarter of the prior year, ferrous and
nonferrous sales volumes were up 9% and 3%, respectively, even
though ferrous sales volumes were adversely impacted by the delayed
arrival of one ship and nonferrous sales volumes were constrained
by tight container availability. Global demand for recycled metals
remained strong with average ferrous and nonferrous net selling
prices up 90% and 80% year over year, respectively. Finished steel
sales volumes were down 53% and rolling mill utilization in the
quarter was 28% due to the impact of the fire at the mill. Average
net selling prices for finished steel products were up 49% year
over year amid strong non-residential construction demand.
Operating cash flow in the fourth quarter of fiscal 2021 was
$139 million, as cash flows associated with increased profitability
were enhanced by strong working capital management, including
benefits from selling down inventory at the mill during the
temporary production outage.
Capital expenditures were $42 million in the quarter, including
investments in maintaining the business, environmental projects and
advanced metal recovery technologies. Total debt at the end of the
quarter was $75 million and debt, net of cash, was $47 million (for
a reconciliation of adjusted results and debt, net of cash, to U.S.
GAAP, see the table provided in the Non-GAAP Financial Measures
section). The Company has a revolving credit facility of $700
million and CAD$15 million that matures in 2023.
The Company’s effective tax rate for the fourth quarter of
fiscal 2021 was an expense of 13%, lower sequentially due to
certain discrete tax items recognized in the period.
During the fourth quarter, the Company returned capital to
shareholders through its 110th consecutive quarterly dividend.
Completion of Acquisition of Columbus Recycling
Assets
On October 1, 2021, the Company successfully closed its
previously announced acquisition of eight metals recycling
facilities across several states in the Southeast, including
Mississippi, Tennessee and Kentucky, from Columbus Recycling, a
leading provider of ferrous and nonferrous metal recycling products
and services. In the twelve months through the end of August 2021,
Columbus delivered annual sales volumes of approximately 300,000
ferrous tons and 40 million nonferrous pounds. Combined with
Schnitzer’s existing facilities in Georgia, Alabama and Tennessee,
the acquired operations offer additional recycling products,
services and logistics solutions to customers and suppliers across
the Southeast.
Declaration of Quarterly Dividend
The Board of Directors declared a cash dividend of $0.1875 per
common share, payable November 22, 2021 to shareholders of record
on November 8, 2021. Schnitzer has paid a dividend every quarter
since going public in November 1993.
Analysts’ Conference Call: Fourth Quarter and Fiscal 2021
Results
A conference call and slide presentation to discuss results will
be held today, October 21, 2021, at 11:30 a.m. Eastern and will be
hosted by Tamara L. Lundgren, Chairman and Chief Executive Officer,
and Richard Peach, Executive Vice President, Chief Financial
Officer and Chief Strategy Officer. The call and the slide
presentation will be webcast and accessible on the Company’s
website under Company > Investors > Event Calendar at
www.schnitzersteel.com/company/investors/event-calendar.
Summary financial data is provided in the following pages. The
slide presentation and related materials will be available prior to
the call on the above website.
About Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc. is one of the largest
manufacturers and exporters of recycled metal products in North
America with operating facilities located in 25 states, Puerto Rico
and Western Canada. Schnitzer has seven deep water export
facilities located on both the East and West Coasts and in Hawaii
and Puerto Rico. The Company’s integrated operating platform also
includes 50 stores which sell serviceable used auto parts from
salvaged vehicles and receive approximately 5 million annual retail
visits. The Company’s steel manufacturing operations produce
finished steel products, including rebar, wire rod and other
specialty products. The Company began operations in 1906 in
Portland, Oregon.
SCHNITZER STEEL INDUSTRIES,
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
($ in thousands, except per share
amounts)
(Unaudited)
Quarter
Year
4Q21
3Q21
4Q20
2021
2020
Revenues
$
845,615
$
820,718
$
464,594
$
2,758,551
$
1,712,343
Cost of goods sold
719,941
678,297
402,228
2,305,357
1,503,725
Selling, general and administrative
expense
76,528
61,887
49,132
242,463
187,876
(Income) from joint ventures
(1,875
)
(950
)
(136
)
(4,006
)
(834
)
Asset impairment charges
—
—
1,408
—
5,729
Restructuring charges and other
exit-related activities
26
104
1,183
1,008
8,993
Operating income (loss)
50,995
81,380
10,779
213,729
6,854
Interest expense
(898
)
(1,383
)
(3,270
)
(5,285
)
(8,669
)
Other income (loss), net
66
(114
)
(142
)
(455
)
(124
)
Income (loss) from continuing operations
before income taxes
50,163
79,883
7,367
207,989
(1,939
)
Income tax expense
(6,346
)
(14,401
)
(2,734
)
(37,935
)
(166
)
Income (loss) from continuing
operations
43,817
65,482
4,633
170,054
(2,105
)
Loss from discontinued operations, net of
tax
(21
)
(46
)
(55
)
(79
)
(95
)
Net income (loss)
43,796
65,436
4,578
169,975
(2,200
)
Net income attributable to noncontrolling
interests
(1,011
)
(1,801
)
(616
)
(4,863
)
(1,945
)
Net income (loss) attributable to SSI
shareholders
$
42,785
$
63,635
$
3,962
$
165,112
$
(4,145
)
Net income (loss) per share attributable
to SSI shareholders:
Basic:
Income (loss) per share from continuing
operations
$
1.52
$
2.27
$
0.14
$
5.90
$
(0.15
)
Net income (loss) per share
$
1.52
$
2.27
$
0.14
$
5.90
$
(0.15
)
Diluted:
Income (loss) per share from continuing
operations
$
1.43
$
2.16
$
0.14
$
5.66
$
(0.15
)
Net income (loss) per share
$
1.43
$
2.15
$
0.14
$
5.66
$
(0.15
)
Weighted average number of common
shares:
Basic
28,087
28,047
27,729
27,982
27,672
Diluted
29,882
29,543
28,295
29,193
27,672
Dividends declared per common share
$
0.1875
0.1875
$
0.1875
$
0.7500
0.7500
SCHNITZER STEEL INDUSTRIES,
INC.
SELECTED OPERATING
STATISTICS
(Unaudited)
YTD
1Q21
2Q21
3Q21
4Q21
2021
Total ferrous volumes (LT, in
thousands)(1)
1,053
977
1,215
1,163
4,408
Total nonferrous volumes (pounds, in
thousands)(1)(2)
138,236
135,899
155,657
163,586
593,378
Ferrous selling prices ($/LT)(3)
Domestic
$
242
$
349
$
395
$
453
$
364
Foreign
$
276
$
399
$
401
$
446
$
385
Average
$
269
$
387
$
400
$
449
$
381
Ferrous sales volume (LT, in
thousands)
Domestic
388
391
412
309
1,500
Foreign
665
586
803
854
2,908
Total
1,053
977
1,215
1,163
4,408
Nonferrous average price
($/pound)(2)(3)
$
0.64
$
0.83
$
0.97
$
1.01
$
0.88
Nonferrous sales volume (pounds, in
thousands)(2)
138,236
135,899
155,657
163,586
593,378
Cars purchased (in thousands)(4)
78
80
91
89
338
Auto stores at period end
50
50
50
50
50
Finished steel average sales price
($/ST)(3)
$
621
$
690
$
802
$
920
$
737
Sales volume (ST, in thousands)
Rebar
94
103
106
50
353
Coiled products
39
32
47
14
132
Merchant bar and other
1
1
—
1
3
Finished steel products sold
134
136
153
65
488
Rolling mill utilization(5)
97
%
88
%
98
%
28
%
78
%
(1)
Ferrous and nonferrous volumes sold
externally and delivered to our steel mill for finished steel
production.
(2)
Excludes platinum group metals (“PGMs”) in
catalytic converters.
(3)
Price information is shown after netting
the cost of freight incurred to deliver the product to the
customer.
(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 Year
1Q20
2Q20
3Q20
4Q20
2020(1)
Total ferrous volumes (LT, in
thousands)(2)
976
988
927
1,063
3,954
Total nonferrous volumes (pounds, in
thousands)(2)(3)
144,176
124,342
122,913
159,135
550,566
Ferrous selling prices ($/LT)(4)
Domestic
$
196
$
244
$
222
$
214
$
220
Foreign
$
229
$
258
$
236
$
242
$
241
Average
$
222
$
255
$
233
$
236
$
237
Ferrous sales volume (LT, in
thousands)
Domestic
363
379
312
375
1,429
Foreign
613
609
616
688
2,525
Total(5)
976
988
927
1,063
3,954
Nonferrous average price
($/pound)(3)(4)
$
0.54
$
0.55
$
0.54
$
0.56
$
0.55
Nonferrous sales volume (pounds, in
thousands)(3)
144,176
124,342
122,913
159,135
550,566
Cars purchased (in thousands)(6)
83
85
74
74
316
Auto stores at period end
51
51
49
50
50
Finished steel average sales price
($/ST)(4)
$
643
$
627
$
633
$
618
$
630
Sales volume (ST, in thousands)
Rebar
83
86
85
105
358
Coiled products
29
42
39
34
144
Merchant bar and other
1
1
1
—
3
Finished steel products sold(5)
114
129
124
139
505
Rolling mill utilization(7)
85
%
72
%
91
%
96
%
86
%
LT = Long Ton, which is equivalent to 2,240 pounds ST = Short Ton,
which is equivalent to 2,000 pounds
(1)
The sum of quarterly amounts may not agree
to full year equivalent due to rounding.
(2)
Ferrous and nonferrous volumes sold
externally and delivered to our steel mill for finished steel
production.
(3)
Excludes platinum group metals (“PGMs”) in
catalytic converters.
(4)
Price information is shown after netting
the cost of freight incurred to deliver the product to the
customer.
(5)
May not foot due to rounding.
(6)
Cars purchased by auto parts stores
only.
(7)
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)
August 31, 2021
August 31, 2020
Assets
Current assets:
Cash and cash equivalents
$
27,818
$
17,887
Accounts receivable, net
214,098
139,147
Inventories
256,427
157,269
Other current assets
44,771
48,328
Total current assets
543,114
362,631
Property, plant and equipment, net
562,674
487,004
Operating lease right-of-use assets
131,221
140,584
Goodwill and other assets
257,354
239,708
Total assets
$
1,494,363
$
1,229,927
Liabilities and Equity
Current liabilities:
Short-term borrowings
$
3,654
$
2,184
Operating lease liabilities
21,417
19,760
Other current liabilities
327,779
201,720
Total current liabilities
352,850
223,664
Long-term debt, net of current
maturities
71,299
102,235
Environmental liabilities, net of current
portion
52,385
47,162
Operating lease liabilities, net of
current maturities
113,165
125,001
Other long-term liabilities
64,885
51,429
Total liabilities
654,584
549,491
Total Schnitzer Steel Industries, Inc.
("SSI") shareholders' equity
835,764
676,707
Noncontrolling interests
4,015
3,729
Total equity
839,779
680,436
Total liabilities and equity
$
1,494,363
$
1,229,927
Non-GAAP Financial Measures
This press release contains performance based on adjusted
diluted earnings per share from continuing operations attributable
to SSI shareholders, adjusted EBITDA and adjusted EBITDA per
ferrous ton which are non-GAAP financial measures as defined under
SEC rules. As required by SEC rules, the Company has provided a
reconciliation of these measures for each period discussed to the
most directly comparable U.S. GAAP measure. Management believes
that providing these non-GAAP financial measures adds a meaningful
presentation of our results from business operations excluding
adjustments for legacy environmental matters (net of recoveries),
business development costs not related to ongoing operations,
including pre-acquisition expenses, restructuring charges and other
exit-related activities, charges related to non-ordinary course
legal settlements, asset impairment charges, and the income tax
(benefit) expense 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. We believe that presenting debt, net of cash
is useful to investors as a measure of our leverage, as cash and
cash equivalents can be used, among other things, to repay
indebtedness. 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.
Reconciliation of adjusted diluted
earnings per share from continuing operations attributable to SSI
shareholders
($ per share)
Quarter
Year
4Q21
3Q21
4Q20
2021
2020
As reported
$
1.43
$
2.16
$
0.14
$
5.66
$
(0.15
)
Charges (recoveries) for legacy
environmental matters, net, per share(1)
0.43
0.01
0.01
0.47
0.15
Business development costs, per share
0.05
0.03
—
0.07
0.06
Restructuring charges and other
exit-related activities,
per share
—
—
0.04
0.03
0.32
Charges related to legal settlements, per
share(2)
—
0.01
—
0.01
—
Asset impairment charges, per share
—
—
0.05
—
0.21
Income tax (benefit) expense allocated to
adjustments,
per share(3)
(0.10
)
(0.01
)
(0.01
)
(0.13
)
(0.16
)
Adjusted(4)
$
1.81
$
2.20
$
0.23
$
6.13
$
0.43
Reconciliation of adjusted EBITDA and
adjusted EBITDA per ferrous ton
($ in millions)
Quarter
Year
4Q21
3Q21
4Q20
2021
2020
Net income (loss)
$
44
$
65
$
5
$
170
$
(2
)
Plus interest expense
1
1
3
5
9
Plus tax expense (benefit)
6
14
3
38
—
Plus depreciation and amortization
15
14
15
59
58
Plus (recoveries) charges for legacy
environmental matters, net(1)
13
—
—
14
4
Plus business development costs
1
1
—
2
2
Plus restructuring charges and other
exit-related activities
1
—
1
1
9
Plus charges related to legal
settlements
—
—
—
—
—
Plus asset impairment charges
—
—
1
—
6
Adjusted EBITDA(4)
$
80
$
97
$
28
$
289
$
85
Ferrous sales volume (LT, in
thousands)
1,163
1,215
1,063
4,408
3,954
Adjusted EBITDA per ferrous ton sold
($/LT)
$
69
$
80
$
27
$
66
$
22
LT = Long Ton, which is equivalent to 2,240 pounds
(1)
Legal and environmental (recoveries)
charges for legacy environmental matters, net of recoveries. Legacy
environmental matters include (recoveries) charges related to the
Portland Harbor Superfund site and to other legacy environmental
loss contingencies.
(2)
Charges related to legal settlements in
the three months ended May 31,2021 relate to a claim with a utility
provider for past charges.
(3)
Income tax allocated to the aggregate
adjustments reconciling reported and adjusted diluted earnings
(loss) per share from continuing operations attributable to SSI
shareholders is determined based on a tax provision calculated with
and without the adjustments.
(4)
May not foot due to rounding.
Reconciliation of debt, net of
cash
($ in thousands)
August 31, 2021
May 31, 2021
August 31, 2020
Short-term borrowings
$
3,654
$
2,834
$
2,184
Long-term debt, net of current
maturities
71,299
150,939
102,235
Total debt
74,953
153,773
104,419
Less: cash and cash equivalents
27,818
17,927
17,887
Total debt, net of cash
$
47,135
$
135,846
$
86,532
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,” “the Company” 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 the impact of pandemics, epidemics or other
public health emergencies, such as the coronavirus disease 2019
(“COVID-19”) pandemic; the impact of equipment upgrades, equipment
failures and facility damage on production, including timing of
repairs and resumption of operations; the realization of insurance
recoveries; the Company’s outlook, growth initiatives or expected
results or objectives, including pricing, margins, sales volumes
and profitability; completion of acquisitions and integration of
acquired businesses; liquidity positions; our ability to generate
cash from continuing operations; trends, cyclicality and changes in
the markets we sell into; strategic direction or goals; targets;
changes to manufacturing and production processes; the realization
of deferred tax assets; planned capital expenditures; 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; the impact of sanctions and tariffs, quotas
and other trade actions and import restrictions; the potential
impact of adopting new accounting pronouncements; the impact of
labor shortages or increased labor costs; 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” of Part
I of our most recent Annual Report on Form 10-K. Examples of these
risks include: the impact of pandemics, epidemics or other public
health emergencies, such as the COVID-19 pandemic; the impact of
equipment upgrades, equipment failures and facility damage on
production; 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 sanctions and tariffs,
quotas and other trade actions and import restrictions; volatile
supply and demand conditions affecting prices and volumes in the
markets for raw materials and other inputs we purchase; significant
decreases in recycled metal prices; imbalances in supply and demand
conditions in the global steel industry; difficulties associated
with acquisitions and integration of acquired businesses; supply
chain disruptions; reliance on third party shipping companies,
including with respect to freight rates and the availability of
transportation; inability to obtain or renew business licenses and
permits; the impact of goodwill impairment charges; the impact of
long-lived asset and equity investment impairment charges; failure
to realize or delays in realizing expected benefits from
investments in processing and manufacturing technology
improvements; inability to achieve or sustain the benefits from
productivity, cost savings and restructuring initiatives; inability
to renew facility leases; 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 the agreement governing our bank credit facilities; the
impact of consolidation in the steel industry; 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; compliance with climate change and greenhouse gas
emission laws and regulations; the impact of labor shortages or
increased labor costs; 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/20211021005348/en/
Investor Relations: Michael Bennett (503) 323-2811
mcbennett@schn.com
Company Info: www.schnitzersteel.com ir@schn.com
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