Schnitzer Steel Industries, Inc. (SCHN) has reported a 50.32 percent jump in profit for the quarter ended Aug. 31, 2016. The company has earned $16.13 million, or $0.58 a share in the quarter, compared with $10.73 million, or $0.39 a share for the same period last year. On the other hand, adjusted net income from continuing operations for the quarter stood at $17 million, or $0.60 a share compared with $9 million or $0.31 a share, a year ago. Revenue during the quarter dropped 14.52 percent to $390.66 million from $457.02 million in the previous year period. Gross margin for the quarter expanded 214 basis points over the previous year period to 13.81 percent. Total expenses were 95.30 percent of quarterly revenues, down from 98.09 percent for the same period last year. This has led to an improvement of 280 basis points in operating margin to 4.70 percent.
Operating income for the quarter was $18.38 million, compared with $8.72 million in the previous year period.
However, the adjusted operating income for the quarter stood at $19 million compared to $10 million in the prior year period. At the same time, adjusted operating margin improved 268 basis points in the quarter to 4.86 percent from 2.19 percent in the last year period.
"Our fourth quarter performance continued to demonstrate the benefits of our cost reduction and productivity initiatives which significantly contributed to our improved operating margins, despite a year over year decline in prices and volumes as weak global conditions persisted," said Tamara Lundgren, president and chief executive officer. "Our higher profitability and working capital efficiency generated positive operating cash flow in fiscal 2016, enabling us to reduce our debt to its lowest level since fiscal 2011 while continuing to return capital to our shareholders. Going forward, our capital allocation priorities and strong balance sheet provide us with the flexibility and financial strength to take advantage of evolving market opportunities and further increase shareholder value," added Lundgren.
Working capital declines
Schnitzer Steel Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $166.15 million as at Aug. 31, 2016, down 17.71 percent or $35.77 million from $201.92 million on Aug. 31, 2015. Current ratio was at 2.24 as on Aug. 31, 2016, down from 2.68 on Aug. 31, 2015. Debt comes down
Schnitzer Steel Industries, Inc. has recorded a decline in total debt over the last one year. It stood at $192.52 million as on Aug. 31, 2016, down 15.62 percent or $35.64 million from $228.16 million on Aug. 31, 2015. Total debt was 21.60 percent of total assets as on Aug. 31, 2016, compared with 23.71 percent on Aug. 31, 2015. Debt to equity ratio was at 0.38 as on Aug. 31, 2016, down from 0.42 as on Aug. 31, 2015. Interest coverage ratio improved to 8.71 for the quarter from 4.06 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
