Steel Mills

Radius expects wider Q2 loss

March 18, 2024

Radius Recycling anticipates a wider loss in its fiscal second quarter vs. the first quarter, according to preliminary results.

The Portland, Ore.-based company, formerly Schnitzer Steel Industries, has announced a preliminary net loss of ~$35 million in its Q2’24 ended Feb. 29, widening from a loss of $18 million in the previous quarter.

“Without question, current market conditions remain challenging as cyclical headwinds are creating tighter supply flows and compressing metal spreads,” Chairman and CEO Tamara Lundgren said in a statement on March 14.

In its second quarter, the company said it introduced a plan to reduce selling, general, and administrative expense by 10% and to boost production “efficiencies.”

These measures include “reductions in headcount and other employee-related expenses, as well as decreases in non-trade procurement spend, transportation and logistics, and other outside services,” Radius said.

The company said these are expected to deliver $40 million in aggregate annual benefits. This is in addition to the $30 million in annual benefits previously announced and “substantially implemented in the second quarter.”

Radius noted tight supply flows for recycled metals and “unusually wet winter weather” hit sales volumes and metal spreads for both recycled metals and finished steel.

Ferrous sales volumes are anticipated to fall sequentially by 15%, while nonferrous sales volumes are expected to be down 3% in the same comparison, Radius said.

The company will report financial results for its fiscal Q2’24 on Thursday, April 4.

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.