Schnitzer Steel Industries Inc.
SCHN,
-1.97%

offered above-consensus guidance for its fiscal fourth quarter on Thursday, after the recycled metals market performed strongly with average ferrous selling prices at their highest since 2008 and non-ferrous market prices at or near multi-year highs. The Portland, Ore.-based company is now expecting per-share earnings to range from $1.40 to $1.48, and for adjusted per-share earnings to range from $1.75 to $1.83. That puts it well above the FactSet consensus of $1.57. “Market selling prices for finished steel products also continued to increase on strong demand and reached their highest levels in more than a decade,” the company said in a filing with the Securities and Exchange Commission. Schnitzer is expecting ferrous and non-ferrous sales volumes to climb by 9% and 3% respectively, though ferrous sales volumes were hurt by the delayed arrival of one ship and non-ferrous volumes were constrained by container availability. The company is expecting to generate operating cash flow of about $139 million in the quarter, and will reduce its debt to $75 million the lowest since 2005. Shares were up 0.5% premarket and have gained 34% in the year to date, while the S&P 500
SPX,
+0.16%

has gained 16%.

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