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Last Update: 09-Jan-12 09:44 ET
Schnitzer Trades Higher On Q1 Results
Schnitzer Steel (SCHN $43.91 +0.21) is trading higher this morning following its first quarter results.
The company reported first quarter earnings of $0.25 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.22.
Revenues rose 20.3% year/year to $812 million versus the $787.3 million consensus.
During the quarter, heightened global macroeconomic concerns, stemming primarily from the European debt crisis, resulted in a significant slowdown in customer buying patterns which was followed by a sharp decline in sales prices. The stronger market in the fourth quarter of fiscal 2011 carried forward higher average inventory costs into the first quarter and as a result, first quarter operating margins were compressed significantly as average inventory costs did not decline as quickly as cash purchase prices for scrap.
The company reported first quarter earnings of $0.25 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.22.
Revenues rose 20.3% year/year to $812 million versus the $787.3 million consensus.
During the quarter, heightened global macroeconomic concerns, stemming primarily from the European debt crisis, resulted in a significant slowdown in customer buying patterns which was followed by a sharp decline in sales prices. The stronger market in the fourth quarter of fiscal 2011 carried forward higher average inventory costs into the first quarter and as a result, first quarter operating margins were compressed significantly as average inventory costs did not decline as quickly as cash purchase prices for scrap.
