SCHN
$32.11
Schnitzer Steel A
($1.97)
(5.78%)
Earnings Details
1st Quarter November 2022
Thursday, January 5, 2023 8:00:00 AM
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Summary

Schnitzer Steel A Reports In-line

Schnitzer Steel A (SCHN) reported a 1st Quarter November 2022 loss of $0.44 per share on revenue of $598.7 million. The consensus estimate was a loss of $0.45 per share on revenue of $643.6 million. The Earnings Whisper number was for a loss of $0.44 per share. Revenue fell 25.0% compared to the same quarter a year ago.

Schnitzer Steel Industries Inc is a recycler of ferrous and nonferrous scrap metal, a recycler of used and salvaged vehicles and a manufacturer of finished steel products.

Results
Reported Earnings
($0.44)
Earnings Whisper
($0.44)
Consensus Estimate
($0.45)
Reported Revenue
$598.7 Mil
Revenue Estimate
$643.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Schnitzer Reports First Quarter Fiscal 2023 Financial Results

Increased Productivity Improvement Benefits Target from $40 million to $60 million

Expanded Recycling Services Platform with Acquisition of ScrapSource LLC

Schnitzer Board Declares Quarterly Dividend

PORTLAND, Ore.--(BUSINESS WIRE)--Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) today reported results for its first quarter of fiscal 2023 ended November 30, 2022.

First Quarter Fiscal 2023 Highlights

  • Diluted loss per share from continuing operations of $(0.64). Net loss of $(18) million and net loss per ferrous ton of $(21).
  • Adjusted diluted loss per share from continuing operations of $(0.44), which excludes charges of $7 million related primarily to asset impairments and restructuring charges and other exit-related activities.
  • Adjusted EBITDA of $8 million and adjusted EBITDA per ferrous ton of $10.
  • Results reflect an adverse impact of approximately $18 million or $21 per ferrous ton from extended operational disruptions at the Everett and Oakland metals recycling facilities that were resolved in November.

The Company's performance in the quarter reflected lower demand and lower average selling prices for recycled metals and finished steel products. Demand softened throughout the quarter, influenced by macro concerns, including slower growth, inflationary pressures, and steel inventory destocking. Lower prices led to tighter supply flows and compression of metal spreads. Ferrous and nonferrous sales volumes declined sequentially reflecting the impact of the disruptions in Everett and Oakland, the tighter supply flows and several ferrous shipments slipping into December. In the first quarter, the Company achieved nearly the full run rate of benefits from the $40 million of cost reduction and productivity initiatives previously announced in October, which mitigated the impact of inflation on operating costs and has increased the full-year target of productivity initiatives by $20 million.

During the quarter, the Company made progress on its strategic growth investments in advanced metal recovery technologies and began the commissioning of two primary nonferrous recovery systems in Massachusetts and California. In addition, on November 18, 2022, the Company purchased the operating assets of ScrapSource LLC, a recycling services business based in Dallas, Texas. ScrapSource provides metals recycling management services and solutions to over five hundred customers, representing manufacturers, fabrication facilities and service centers across North America. Combined with the Company's existing national accounts team, this acquisition is expected to significantly expand the Company's recycled services volumes and extend this business into additional regional markets across the U.S.

Tamara Lundgren, Chairman and Chief Executive Officer, stated, “Although the past several months have been challenging as we faced weakening market conditions and short-term operational disruptions that are now resolved, we are continuing to progress our strategic initiatives centered on advanced metal recovery technologies, volume growth, and productivity improvements. Since the end of the quarter, we have seen a strengthening in selling prices and demand for recycled metals in both the export and domestic markets and we are expecting significant sequential improvements in our second quarter results.”

Ms. Lundgren continued, “Last month, we published our Fiscal 2022 Sustainability Report, Recycled Metals for a Low-Carbon Future. We made significant progress towards our People, Planet, and Profit goals, including achieving 100% net carbon-free electricity use across our operations for a second consecutive year and reducing Scope 1 and 2 greenhouse gas emissions from recycling operations by 24% against a 2019 baseline. We also launched GRN Steel™, our line of net zero carbon emissions steel products. By supplying our global customers with high quality, low-carbon recycled metals that are critical to the production of sustainable products and infrastructure, we are continuing to deliver on our commitment to creating a more sustainable future.”

Summary Results

($ in millions, except per share amounts, and prices per ton/pound)

 

Quarter

 

1Q23

 

4Q22

 

1Q22

Revenues

$

599

 

$

894

 

$

798

 

Gross margin (total revenues less cost of goods sold)

$

49

 

$

85

 

$

115

 

Selling, general and administrative expense

$

64

 

$

69

 

$

55

 

Net (loss) income

$

(18

)

$

11

 

$

47

 

Net (loss) income per ferrous ton

$

(21

)

$

9

 

$

41

 

Diluted (loss) earnings per share from continuing operations attributable to SSI shareholders

 

 

 

 

 

 

Reported

$

(0.64

)

$

0.36

 

$

1.55

 

Adjusted(1)

$

(0.44

)

$

0.50

 

$

1.58

 

Adjusted EBITDA(1)

$

8

 

$

40

 

$

78

 

Adjusted EBITDA per ferrous ton(1)(4)

$

10

 

$

32

 

$

68

 

 

 

 

 

 

 

 

Ferrous sales volumes (LT, in thousands)

 

851

 

 

1,268

 

 

1,148

 

Avg. net ferrous sales prices ($/LT)(2)

$

340

 

$

387

 

$

446

 

Nonferrous sales volumes (pounds, in millions)(3)

 

163

 

 

186

 

 

153

 

Avg. nonferrous sales prices ($/pound)(2)(3)

$

0.90

 

$

1.05

 

$

1.05

 

Finished steel average net sales price ($/ST)(2)

$

1,015

 

$

1,118

 

$

979

 

Finished steel sales volumes (ST, in thousands)

118

 

125

 

 

99

 

Rolling mill utilization (%)

 

81

%

 

93

%

 

78

%

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.

(4)

May not foot due to rounding.

First Quarter Fiscal 2023 Financial Review and Analysis

Net loss per ferrous ton was $(21) and adjusted EBITDA per ferrous ton was $10 in the first quarter of fiscal 2023. Sequential performance was impacted by lower average selling prices and sales volumes for recycled ferrous and nonferrous metals and finished steel products. Lower prices led to tighter supply flows and compression of metal spreads. Results reflected an estimated adverse impact of approximately $18 million or $21 per ferrous ton from the extended operational disruptions at the Everett and Oakland recycling facilities that were resolved in November. After delivering a nearly full run rate of benefits in the first quarter from the previously announced productivity initiatives targeting annual benefits of $40 million, the Company is expanding the scope of the initiatives by targeting an additional $20 million in cost reductions annually, which primarily focus on SG&A expense.

Ferrous and nonferrous sales volumes in the first quarter of fiscal 2023 were down 33% and 12% sequentially, which included the impact on supply flows and sales volumes from the disruptions in Everett and Oakland and several ferrous shipments slipping into December. Average ferrous and nonferrous net selling prices were down sequentially 12% and 14%, respectively. Finished steel sales volumes were down 6% sequentially, and rolling mill utilization averaged 81% in the quarter. Average net selling prices for finished steel products were down 9% sequentially. The detriment from average inventory accounting was approximately $2 per ferrous ton.

The first quarter of fiscal 2023 had negative operating cash flow of $62 million, reflecting an increase in net working capital due to higher inventories due to the shipment delays and the annual payment of incentive compensation accrued in fiscal 2022. Total debt at the end of the quarter was $358 million, and debt, net of cash, was $354 million. Capital expenditures were $48 million in the quarter, including investments in advanced metal recovery technologies, maintaining the business and environmental projects. The sequential increase in debt also reflects a $25 million investment for the purchase of the assets of ScrapSource in November (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’s effective tax rate for the first quarter of fiscal 2023 was a benefit of 26%. During the first quarter, the Company returned capital to shareholders through its 115th consecutive quarterly dividend.

Declaration of Quarterly Dividend

The Board of Directors declared a cash dividend of $0.1875 per common share, payable February 14, 2023 to shareholders of record on January 31, 2023. Schnitzer has paid a dividend every quarter since going public in November 1993.

Analysts’ Conference Call: First Quarter of Fiscal 2023

A conference call and slide presentation to discuss results will be held today, January 5, 2023, at 11:30 a.m. Eastern and will be hosted by Tamara L. Lundgren, Chairman and Chief Executive Officer, and Stefano Gaggini, Senior Vice President and Chief Financial 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. operates at the intersection of metals recovery, reuse, recycling, and manufacturing. Schnitzer 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 51 stores which sell serviceable used auto parts from salvaged vehicles and receive over 4.1 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)

 

 

 

 

Three Months Ended

 

November 30,
2022

August 31,
2022

November 30,
2021

Revenues

$

598,730

 

$

894,412

 

$

798,118

 

Cost of goods sold

 

550,011

 

 

809,587

 

 

683,244

 

Selling, general and administrative expense

 

64,228

 

 

69,237

 

 

55,267

 

Income from joint ventures

 

(790

)

 

(1,151

)

 

(236

)

Asset impairment charges

 

 

 

638

 

 

 

Restructuring charges and other exit-related activities

 

1,592

 

 

25

 

 

22

 

Operating (loss) income

 

(16,311

)

 

16,076

 

 

59,821

 

Interest expense

 

(3,324

)

 

(3,042

)

 

(1,372

)

Other loss, net

 

(3,884

)

 

(556

)

 

(47

)

(Loss) income from continuing operations before income taxes

 

(23,519

)

 

12,478

 

 

58,402

 

Income tax benefit (expense)

 

6,032

 

 

(1,390

)

 

(11,097

)

(Loss) income from continuing operations

 

(17,487

)

 

11,088

 

 

47,305

 

Loss from discontinued operations, net of tax

 

(69

)

 

(37

)

 

(29

)

Net (loss) income

 

(17,556

)

 

11,051

 

 

47,276

 

Net income attributable to noncontrolling interests

 

(232

)

 

(699

)

 

(1,077

)

Net (loss) income attributable to SSI shareholders

$

(17,788

)

$

10,352

 

$

46,199

 

 

 

 

 

 

 

 

Net (loss) income per share attributable to SSI shareholders:

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

(Loss) income per share from continuing operations

$

(0.64

)

$

0.37

 

$

1.64

 

Net (loss) income per share

$

(0.64

)

$

0.37

 

$

1.64

 

Diluted:

 

 

 

 

 

 

(Loss) income per share from continuing operations

$

(0.64

)

$

0.36

 

$

1.55

 

Net (loss) income per share

$

(0.64

)

$

0.36

 

$

1.55

 

Weighted average number of common shares:

 

 

 

 

 

 

Basic

 

27,723

 

 

27,803

 

 

28,159

 

Diluted

 

27,723

 

 

28,892

 

 

29,885

 

Dividends declared per common share

$

0.1875

 

$

0.1875

 

$

0.1875

 

 
SCHNITZER STEEL INDUSTRIES, INC.

SELECTED OPERATING STATISTICS

(Unaudited)

 

 

 

 

1Q23

Total ferrous volumes (LT, in thousands)(1)

 

851

 

Total nonferrous volumes (pounds, in thousands)(1)(2)

 

162,720

 

Ferrous selling prices ($/LT)(3)

 

 

Domestic

$

313

 

Foreign

$

356

 

Average

$

340

 

Ferrous sales volume (LT, in thousands)

 

 

Domestic

 

432

 

Foreign

 

418

 

Total(6)

 

851

 

Nonferrous average price ($/pound)(2)(3)

$

0.90

 

Cars purchased (in thousands)(4)

 

69

 

Auto stores at period end

 

51

 

Finished steel average sales price ($/ST)(3)

$

1,015

 

Sales volume (ST, in thousands)

 

 

Rebar

 

101

 

Coiled products

 

16

 

Merchant bar and other

 

1

 

Finished steel products sold

 

118

 

Rolling mill utilization(5)

 

81

%

(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.

(6)

May not foot due to rounding.

 
SCHNITZER STEEL INDUSTRIES, INC.

SELECTED OPERATING STATISTICS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

FY

 

1Q22

 

2Q22

 

3Q22

 

4Q22

 

2022(6)

Total ferrous volumes (LT, in thousands)(1)

 

1,148

 

 

1,071

 

 

1,129

 

 

1,268

 

 

4,616

 

Total nonferrous volumes (pounds, in thousands)(1)(2)

 

153,227

 

 

147,145

 

 

201,413

 

 

185,634

 

 

687,419

 

Ferrous selling prices ($/LT)(3)

 

 

 

 

 

 

 

 

 

 

Domestic

$

431

 

$

418

 

$

516

 

$

389

 

$

438

 

Foreign

$

450

 

$

455

 

$

552

 

$

387

 

$

457

 

Average

$

446

 

$

445

 

$

541

 

$

387

 

$

452

 

Ferrous sales volume (LT, in thousands)

 

 

 

 

 

 

 

 

 

 

Domestic

 

430

 

 

408

 

 

490

 

 

477

 

 

1,806

 

Foreign

 

718

 

 

663

 

 

639

 

 

791

 

 

2,810

 

Total

 

1,148

 

 

1,071

 

 

1,129

 

 

1,268

 

 

4,616

 

Nonferrous average price ($/pound)(2)(3)

$

1.05

 

$

1.10

 

$

1.12

 

$

1.05

 

$

1.08

 

Cars purchased (in thousands)(4)

 

80

 

 

73

 

 

84

 

 

76

 

 

312

 

Auto stores at period end

 

50

 

 

50

 

 

50

 

 

51

 

 

51

 

Finished steel average sales price ($/ST)(3)

$

979

 

$

1,045

 

$

1,129

 

$

1,118

 

$

1,075

 

Sales volume (ST, in thousands)

 

 

 

 

 

 

 

 

 

 

Rebar

 

74

 

 

73

 

 

99

 

 

96

 

 

343

 

Coiled products

 

25

 

 

32

 

 

35

 

 

28

 

 

119

 

Merchant bar and other

 

 

 

1

 

 

1

 

 

1

 

 

3

 

Finished steel products sold

 

99

 

 

106

 

 

135

 

 

125

 

 

465

 

Rolling mill utilization(5)

 

78

%

 

86

%

 

96

%

 

93

%

 

88

%

LT = Long Ton, which is equivalent to 2,240 pounds
ST = Short Ton, which is equivalent to 2,000 pounds

(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. 1Q22 impacted by mill shutdown beginning in May 2021 and subsequent ramp-up of operations.

(6)

May not foot due to rounding.

 
SCHNITZER STEEL INDUSTRIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in thousands)

(Unaudited)

 

 

 

 

 

 

 

November 30, 2022

 

August 31, 2022

Assets

 

 

Current assets:

 

 

Cash and cash equivalents

$

3,539

$

43,803

Accounts receivable, net

 

218,189

 

237,654

Inventories

 

345,198

 

315,189

Other current assets

 

67,638

 

74,740

Total current assets

 

634,564

 

671,386

Property, plant and equipment, net

 

682,738

 

664,120

Operating lease right-of-use assets

 

117,806

 

122,413

Goodwill and other assets

 

387,511

 

368,678

Total assets

$

1,822,619

$

1,826,597

 

 

 

Liabilities and Equity

 

 

Current liabilities:

 

 

Short-term borrowings

$

6,379

$

6,041

Operating lease liabilities

 

21,538

 

21,660

Other current liabilities

 

281,090

 

353,872

Total current liabilities

 

309,007

 

381,573

Long-term debt, net of current maturities

 

351,200

 

242,521

Environmental liabilities, net of current portion

 

55,066

 

55,469

Operating lease liabilities, net of current maturities

 

97,536

 

101,651

Other long-term liabilities

 

81,306

 

86,909

Total liabilities

 

894,115

 

868,123

 

 

 

Total Schnitzer Steel Industries, Inc. ("SSI") shareholders' equity

 

924,739

 

953,979

Noncontrolling interests

 

3,765

 

4,495

Total equity

 

928,504

 

958,474

Total liabilities and equity

$

1,822,619

$

1,826,597

 

Non-GAAP Financial Measures

This press release contains performance based on adjusted diluted (loss) earnings per share from continuing operations attributable to SSI shareholders, adjusted EBITDA, adjusted EBITDA per ferrous ton, and adjusted selling, general, and administration expense 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 asset impairment charges, restructuring charges and other exit-related activities, legacy environmental matters (net of recoveries), business development costs not related to ongoing operations including pre-acquisition expenses, and the income tax 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. 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 (loss) earnings per share from continuing operations attributable to SSI shareholders

($ per share)

Three Months Ended

 

1Q23

 

4Q22

 

1Q22

As reported

$

(0.64

)

$

0.36

$

1.55

 

Asset impairment charges, per share(1)

 

0.14

 

 

0.02

 

 

Restructuring charges and other exit-related activities, per share

 

0.06

 

 

 

 

Charges for legacy environmental matters, net, per share(2)

 

0.05

 

 

0.10

 

0.02

 

Business development costs, per share

 

0.01

 

 

0.02

 

0.02

 

Income tax benefit allocated to adjustments, per share(3)

 

(0.06

)

 

 

(0.01

)

Adjusted

$

(0.44

)

$

0.50

$

1.58

 

 

Reconciliation of adjusted EBITDA and adjusted EBITDA per ferrous ton

($ in millions)

Three Months Ended

 

1Q23(4)

 

4Q22

 

1Q22(4)

Net (loss) income

$

(18

)

$

11

$

47

Plus interest expense

 

3

 

 

3

 

1

Plus tax (benefit) expense(3)

 

(6

)

 

1

 

11

Plus depreciation and amortization

 

21

 

 

20

 

17

Plus asset impairment charges(1)

 

4

 

 

1

 

Plus restructuring charges and other exit-related activities

 

2

 

 

 

Plus charges for legacy environmental matters, net(2)

 

1

 

 

3

 

Plus business development costs

 

 

 

1

 

1

Adjusted EBITDA(4)

$

8

 

$

40

$

78

 

 

 

 

 

Ferrous sales volume (LT, in thousands)

 

851

 

 

1,268

 

1,148

Adjusted EBITDA per ferrous ton sold ($/LT)

$

10

 

$

32

$

68

LT = Long Ton, which is equivalent to 2,240 pounds

(1)

For the first quarter of fiscal 2023, asset impairment charges included $4 million ($0.14 per share) reported within "Other loss, net" on the Unaudited Condensed Consolidated Statement of Operations.

(2)

Legal and environmental charges, net of recoveries, for legacy environmental matters including those related to the Portland Harbor Superfund site and to other legacy environmental loss contingencies.

(3)

Income tax allocated to the aggregate adjustments reconciling reported and adjusted diluted earnings 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 Adjusted selling, general and administrative expense:

($ in millions)

Three Months Ended

 

1Q23

 

4Q22(2)

 

1Q22

As reported

$

64

 

$

69

 

$

55

 

Charges for legacy environmental matters, net(1)

 

(1

)

 

(3

)

 

 

Business development costs

 

 

 

(1

)

 

(1

)

Adjusted(2)

$

63

 

$

66

 

$

54

 

(1)

Legal and environmental charges, net of recoveries, for legacy environmental matters including those related to the Portland Harbor Superfund site and to other legacy environmental loss contingencies.

(2)

May not foot due to rounding.

 

Reconciliation of debt, net of cash

 

 

 

($ in thousands)

 

 

 

 

November 30,
2022

August 31,
2022

November 30,
2021

Short-term borrowings

$

6,379

$

6,041

$

3,501

Long-term debt, net of current maturities

 

351,200

 

242,521

 

256,215

Total debt

 

357,579

 

248,562

 

259,716

Less: cash and cash equivalents

 

3,539

 

43,803

 

19,081

Total debt, net of cash

$

354,040

$

204,759

$

240,635

 

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 equipment upgrades, equipment failures, and facility damage on production, including timing of repairs and resumption of operations; the realization of insurance recoveries; the impact of pandemics, epidemics, or other public health emergencies, such as the coronavirus disease 2019 (“COVID-19”) pandemic; 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; the impacts of supply chain disruptions, inflation, and rising interest rates; 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 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; the potential impact of adopting new accounting pronouncements; 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: potential environmental cleanup costs related to the Portland Harbor Superfund site or other locations; the impact of equipment upgrades, equipment failures, and facility damage on production; failure to realize or delays in realizing expected benefits from capital projects, including investments in processing and manufacturing technology improvements; the cyclicality and impact of general economic conditions; the impact of inflation, rising interest rates, and foreign currency fluctuations; changing conditions in global markets including the impact of sanctions and tariffs, quotas, and other trade actions and import restrictions; increases in the relative value of the U.S. dollar; economic and geopolitical instability including as a result of military conflict; 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; the impact of goodwill impairment charges; the impact of long-lived asset and equity investment impairment charges; the impact of pandemics, epidemics, or other public health emergencies, such as the COVID-19 pandemic; 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; 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; translation risks associated with fluctuation in foreign exchange rates; inability to obtain or renew business licenses and permits; environmental compliance costs and potential environmental liabilities; increased environmental regulations and enforcement; 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.

Company Contact:

Investor Relations:
Michael Bennett
(503) 323-2811
mcbennett@schn.com

Company Info:
www.schnitzersteel.com
ir@schn.com

Source: Schnitzer Steel Industries, Inc.