In the first half of its financial year, US ferrous scrap recycler Schnitzer Steel recorded a decline in revenue from $1.214bn in the prior-year period to $955m. The company's operating result decreased from a profit of $3m in the six-month period ended 28 February 2014 to a loss of $205m in the same period this year. Net income also deteriorated significantly, falling from a loss of $2.7m last year to a loss of $197.5m, according to the company's second-quarter financial report released this week.
In response, Schnitzer Steel launched a programme to reduce cost and capacity and raise productivity which is intended to improve financial performance by $60m annually by the end of 2016. In addition, the company plans to integrate its used auto parts business and its metals recycling operations in a single division by the end of the current financial year on 31 August 2015.