Schnitzer Steel Industries (SCHN) has reported a 50.59 percent jump in profit for the quarter ended May 31, 2017. The company has earned $16.56 million, or $0.60 a share in the quarter, compared with $11 million, or $0.40 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $16 million, or $0.56 a share compared with $13 million or $0.46 a share, a year ago.

Revenue during the quarter surged 35.69 percent to $477.09 million from $351.60 million in the previous year period. Gross margin for the quarter contracted 234 basis points over the previous year period to 13.83 percent. Total expenses were 95.99 percent of quarterly revenues, up from 95.77 percent for the same period last year. That has resulted in a contraction of 22 basis points in operating margin to 4.01 percent.

Operating income for the quarter was $19.15 million, compared with $14.89 million in the previous year period.

However, the adjusted operating income for the quarter stood at $18.02 million compared to $15.29 million in the prior year period. At the same time, adjusted operating margin contracted 57 basis points in the quarter to 3.78 percent from 4.35 percent in the last year period.

"Our third quarter results benefited from our continued focus on profitable growth. In both our Auto and Metals Recycling and our Steel Manufacturing Businesses, higher volumes and operating leverage from our multi-year productivity initiatives drove increased operating income," commented Tamara Lundgren, president and chief executive officer. "Through the first nine months of this year, we have achieved our best earnings performance since fiscal 2012."