Schnitzer Steel Pummeled Following Q1 Results (SCHN)

Shares of Schnitzer Steel Industries SCHN are cratering after-hours after the company reported disappointing Q1 earnings results. Shares were off as much as 8% before coming back slightly; SCHN is currently trading at $64.75, off 5.98%. The company said that Q1 revenues were $675 million, up some 71% year over year; Q1 EPS came in at $0.64 per fully diluted share. "As our record first quarter revenues demonstrate, global demand continues to drive prices and volumes higher," said Tamara Lundgren, President and Chief Executive Officer of SCHN. "Asian economies have maintained steady demand due to strong infrastructure spending, and China's recent announcement of its new 5-year plan suggests increased purchases of recycled metals due to the environmental and economic benefits. We also anticipate stronger demand in the domestic markets in the New Year due to inventory replenishment and a slowly improving domestic economy. We believe all these favorable dynamics signal strong long-term demand for our products." Schnitzer Steel Industries, Inc. is a recycler of ferrous and nonferrous scrap metal. The company is a recycler of used and salvaged vehicles and a manufacturer of finished steel products. Through its North American metals recycling business, it collects and recycles autobodies, rail cars, home appliances, industrial machinery, manufacturing scrap and construction demolition from bridges, buildings and other obsolete structures.