January / February 2016
In this issue ...
Schnitzer Steel Industries, Inc. has reported a $5.3 million loss for the first fiscal quarter of 2016, which ended November 30, 2015. The company cited adverse market conditions for the loss, but credited restructuring and cost-saving measures for gains in its Auto and Metals Recycling (AMR) and Steel Manufacturing Business (SMB).
“Despite severe market headwinds, we delivered positive operating income in both our operating divisions through continued focus on delivering savings from our cost reduction and productivity initiatives as well as from reductions in our variable costs. We also continued to generate strong working capital and to return capital to our shareholders through our dividend and share repurchases,” said Tamara Lundgren, President and Chief Executive Officer. “While market conditions remained challenging, reflecting significant adverse impacts from a high level of steel imports, overproduction of iron ore, the strong U.S. dollar, low global growth and customer de-stocking in the face of falling prices, our first quarter results reflect our ability to maintain positive metal spreads in a declining market, our focus on managing our costs and working capital efficiency, and the flexibility of our platform to quickly meet changing demand dynamics in the domestic and export markets.”
Schnitzer Steel released it lost an adjusted $0.13 per share from continuing operations, which included an estimated adverse impact from average inventory accounting of approximately $7 million, or $0.20 per share. Comparatively, Schnitzer Steel reported a loss of $0.11 per share a year ago. Adjusted earnings per share in both periods excludes restructuring expense and, for the first quarter of fiscal 2015, also excluded a $0.16 adverse impact from reselling or modifying the terms of certain previously contracted bulk ferrous shipments. The company reported a loss per share from continuing operations of $0.19 for the first quarter of fiscal 2016, compared to a $0.06 loss per share from continuing operations in the prior year period.
Go to www.schnitzersteel.com for more information.
LKQ Corporation announced that it has signed a definitive agreement to acquire the holding company of Rhiag-Inter Auto Parts Italia S.p.A (Rhiag), a leading pan-European business-to-business distributor of aftermarket spare parts for passenger cars and commercial vehicles, for an enterprise value of €1.04 billion. Rhiag has operations in Italy, Czech Republic, Switzerland, Hungary, Romania, Ukraine, Bulgaria, Slovakia, Poland and Spain. Rhiag operates through 247 distribution centers and 10 warehouses, and serves more than 100,000 professional clients. The purchased is expected to be completed early in the second quarter of 2016.
“Rhiag expands our addressable market with the addition of 10 new countries to our European footprint,” stated Robert L. Wagman, President and Chief Executive Officer of LKQ Corporation. “Rhiag has a strong market position in Italy and the Czech Republic and experienced management teams in their respective markets. Clearly this acquisition will accelerate our strategy of creating a Pan-European aftermarket mechanical parts distribution business in this highly-fragmented €188 billion wholesale DIFM market.”
Rhiag earned €882 million last year and LKQ stated it expects the transaction to be accretive to its 2016 earnings. LKQ also stated it intends to initially finance the acquisition with $1.3 billion of available borrowing on its credit facility and based on the assumption of Rhiag’s indebtedness.
LKQ, (www.lkqcorp.com), currently has operations in North America, the United Kingdom, the Netherlands, Belgium, France, Scandinavia, Australia and Taiwan.
Auto recyclers from around the world are preparing for the 16th International Automotive Recycling Congress (IARC) to be held on March 16 - 18, 2016 in Berlin Germany. The international event is hosted by several associations, in North America, Europe and Asia, including ARA, ARC and ISRI.
The event includes a panel discussion on Illegal aspects of legal export and will also address the consequences of this ELV export flow for the car recycling industries.
Hot topics will focus on
- Country reports: delegates will learn how ELV recycling is developing in China, India, Turkey and Brazil; Gasification and waste-to-energy;
- Recycling technologies: shredder trials, ELV glass and recovered fuels;
- Strategic impact of demographics and relationships on contemporary automotive recycling;
- Whether closed-loop recycling can be applied to automobiles;
- Monitoring results;
- Future mobility and what a car will look like in 2030.
There will also be yard tours and networking events.
IARC 2016 is expected to attract over 250 car recyclers and a host of other interested parties such as car manufacturers and also local and European-level politicians, among others. Go to www.icm.ch for more information.
PartsLocator.com is now generating more views than ever before. There were more new visits, returning visits and page views in 2015 than the previous year. For example, there are nearly 70 percent more new users in November 2015 versus November 2014 and returning visitor visits are were up 257 percent.
Many of those views were of the articles. The following is a list of 2015’s most-read digital articles from The Locator Magazine and Locator UpFront.
- Auto Recyclers To Star In Reality Show - Locator Magazine May 2015
- Drag Racing - Locator UpFront Winter 2015
- Old School - Locator UpFront Spring 2015
- Strength In Numbers - Locator UpFront Summer 2015
- Scrap Outlook - Locator Magazine October 2015
- Breaking Ground - Locator UpFront Spring 2015
- Branching Out - Locator UpFront Winter 2015
- B & R Auto Wrecking Adds Another Location - Locator Magazine February 2015
- EZ Route - Locator UpFront Winter 2015
- Like Family - Locator UpFront Winter 2015
What will the most-read article of 2016 be? It could be about your company. Send editorial suggestions to firstname.lastname@example.org.
March 2016 Deadlines
January 27, 2016: Listings for The Locator Magazine.
February 1, 2016: Display ads for The Locator Magazine.
February 4, 2016: The Locator Magazine goes to press.