| Your
Position: Homepage > Products > News |
|
| Rising costs hurt Steel Industry |
It couldn't be any worse for present steel industry. In the first quarter as profit dropped from a year earlier. Schnitzer Steel Industries is currently a recycler of ferrous and nonferrous scrap metal and used and salvaged vehicles. The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 45.6%, with the biggest boost coming in the first quarter of the last fiscal year when revenue rose 71.2% from the year earlier quarter.
However, as the gross margin shrank 2.1 percentage points to 8.6%. The contraction appeared to be driven by increased costs, which rose 23.2% from the year earlier quarter while revenue rose 20.3%.
The company has now beaten estimates the last two quarters. In the fourth quarter of the last fiscal year, it topped expectations with net income of $1.33 versus a mean estimate of net income of $1.22 per share.
Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from $1.06 per share to 82 cents, indicating that analysts are growing pessimistic about the company’s performance next quarter. At $3.65 per share, the average estimate for the fiscal year has fallen from $5 ninety days ago.
|
|
|
|
News 
