Allan Gerlat, News Editor

August 29, 2012

1 Min Read
Metal Recycling Firm Schnitzer Restructures, Cuts 300

Metal recycling firm Schnitzer Steel Industries Inc. is laying off 300 workers, or 7 percent of its workforce, in a restructuring move as the result of declining markets.

The Portland, Ore.-based company said in a news release on its outlook for the fiscal fourth quarter that export sale prices for ferrous metals have fallen $70 to $80 a ton from May levels, and scarp sales also slowed. Higher inventory costs as a result are expected to result in a $25 million negative impact to operating income compared with the third quarter, the company said, with two-thirds of the impact affecting its metal recycling business.

The Auto Parts business also expects a 15- to 20-percent decline in revenue, and its Steel Manufacturing business is anticipated to be below break-even for the year.

Schnitzer expects the restructuring to lower annual operating costs by $25 million and be complete by the first quarter of 2013. The company expects a restructuring charge of $12 million.

The company said the restructuring will further integrate the metals recycling and auto parts businesses, streamline corporate functions and reduce organizational layers. It will allow the firm to “extract greater synergies from the significant acquisitions and technology investments which we made in fiscal 2011 and realign our organization to support our future growth.”



About the Author(s)

Allan Gerlat

News Editor, Waste360

Allan Gerlat joined the Waste360 staff in September 2011 as news editor. He was the editor of Waste & Recycling News for the first 16 years of its history, and under his guidance the publication won 27 national and regional awards.

Before Waste & Recycling News, Allan worked at another Crain Communications publication, Rubber & Plastics News, which covers rubber product manufacturing. He began with the publication as associate editor and eventually became managing editor, a position he held for nine years.

Allan is a graduate of Ohio University, where he earned a BS in journalism. He is based in Sagamore Hills, in northeast Ohio.

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