Benzinga - by Akanksha Bakshi, Benzinga Editor.
Schnitzer Steel Industries, Inc. (NASDAQ: RDUS) reported first-quarter FY24 revenue growth of 12.4% year-over-year to $672.89 million, beating the consensus of $643.35 million.
Adjusted loss per share expanded to 64 cents from 44 cents in the first quarter of 2023. It beat the consensus of 70 cents.
Gross margin declined 20.4% Y/Y to $39 million, and Operating loss expanded to $22.98 million from $16.31 million a year ago.
The company stated that its first quarter's operating performance was impacted by tighter recycled metal supplies and lower selling prices, leading to reduced metal spreads. Challenges persisted due to decreased U.S. manufacturing activity and Asia's economic slowdown, notably China's, affecting the market for recycled metals.
Adjusted EBITDA for the quarter was $1 million, compared to $8 million a year ago.
Ferrous sales volumes (LT, in thousands) increased by 35.4% Y/Y to 1,152; adjusted EBITDA per ferrous ton sold ($/LT) was $1 compared to $10 in 1Q23.
Avg. net ferrous sales prices ($/LT) were up to $345 from $340 in 1Q23.
Finished steel average net sales price ($/ST) $831 (-18.1% Y/Y) and sales volumes (ST, in thousands) 129 (+9.3% Y/Y).
RDUS states that Advanced nonferrous technologies and an acquisition boosted nonferrous sales by 12%, while strong western U.S. demand led to a 10% rise in steel sales, with a 95% mill utilization rate.
Price Action: RDUS shares closed lower by 2.86% at $29.50 on Wednesday.
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