June 2008 -- Schnitzer Steel Industries Inc. set a new sales record in its second quarter of 2008 when it
reported quarterly revenues of $751 million. Earnings were $1.25 per diluted share, a record for
the second quarter, and net income was $36 million. Revenues were up 24% and earnings per share
increased 34% compared to the comparable quarter in 2007.
"Our second quarter operating results were strong," said John Carter, president and CEO, in the
company's quarterly statement. "All three of our operating businesses recorded year over year
growth in both revenues and operating income. Driven by continued strong worldwide demand for
recycled metals, prices for ferrous scrap reached unprecedented levels, and our export platform
continued to provide us the ability to sell to the regions of the world where demand was
greatest.
"Prices in our metals recycling business not only more than offset freight price increases which
occurred in the first quarter of this year but also outpaced increases in the cost of acquiring
raw materials," Carter continued. "As a result, we were able to expand margins both sequentially
and compared to the prior year. The auto parts business continued to show year over year
improvements in both revenues and operating income through our ongoing focus on increases in
vehicle purchases. The steel manufacturing business benefited from positive supply and demand
dynamics as selling prices increased due to shortages in finished steel resulting from a low
level of imports."
