Schnitzer Steel Industries

Infobox Company
company_name = Schnitzer Steel Industries, Inc.
company_
company_type = Public (nasdaq|SCHN)
foundation = 1906, Portland, Oregon
location = Portland, Oregon,
United States flagicon|USA
key_people = John D. Carter, President & CEO
industry = steel, scrap metal
products = finished steel (rebar, wire rod)
revenue = $1,855 million (FY 2006)
operating_income = profit $170.9 million (FY 2006)
net_income = profit $143.1 million (FY 2006)
num_employees = 3,252 (2006)
parent =
divisions = Metals Recycling, Auto Parts,
subsid = Cascade Steel Rolling Mills, Inc., Pick-N-Pull
homepage = [http://www.schnitzersteel.com www.schnitzersteel.com]
footnotes = Financial data, [ [http://finance.yahoo.com/q/is?s=SCHN&annual SCHN Income Statement.] Yahoo Finance. Retrieved on April 19 2007.] other info [http://finance.yahoo.com/q/pr?s=schn Profile for SCHN.] Yahoo Finance. Retrieved on April 19 2007.]

Schnitzer Steel Industries, Inc. (nasdaq|SCHN) is an American steel manufacturing company headquartered in Portland, Oregon. Founded in 1906, the company deals mainly in recycled steel. In 2004, the company was ranked fourth in "The Seattle Times" Northwest 100 list of public companies. [Eclectic group tops ranking of the region's strongest public companies. "The Seattle Times", June 4 2004.] As of 2006, it was the tenth largest public company in Oregon by market capitalization. [ [http://www.oregonlive.com/business/wide/index.ssf?/business/oregonian/top50.html "The Oregonian" Top 50, July 2 2006] ] In 2007, Schnitzer ranked 901st on the Fortune 1000 list of the largest companies in the United States with annual revenues of $1.85 billion. [ [http://money.cnn.com/magazines/fortune/fortune500/2007/states/OR.html Fortune 500: Oregon.] CNNMoney. Retrieved on April 19 2007.]

History

Founded in 1906 by Sam Schnitzer, the company started as a one-person scrap metal recycler. [http://library.corporate-ir.net/library/87/870/87090/items/225808/2006AR.pdf 2006 Annual Report.] Schnitzer Steel. Retrieved on April 19 2007.] In 1946, the company incorporated. The company went public in 1993 in an Initial Public Offering (IPO) of $18 per share for 2,750,000 shares. [Initial Public Offering of Class A Common. "S&P Daily News", November 17 1993.]

In 2005, Schnitzer Steel acquired GreenLeaf Auto Recyclers, LLC and Regional Recycling LLC. The company purchased Max Cohen and Sons, a metals recycler based in New Hampshire, in December 2006. [http://portland.bizjournals.com/portland/stories/2006/12/11/daily40.html Schnitzer Steel closes deal for recycler.] "Portland Business Journal", December 15 2006.] By the end of 2006 Schnitzer operated 28 facilities in 11 states, and by December 2007 increased the number of facilities to 34. [ [http://www.bizjournals.com/portland/stories/2007/12/03/daily40.html?ana=from_rss Schnitzer Steel announces financial executive changes.] "Portland Business Journal", December 7 2007.] That month the Securities and Exchange Commission levied charges against former chairman and CEO Robert Philip for allegedly violating bribery laws as part of the Foreign Corrupt Practices Act in relation to dealings with Chinese steel mills. [Kenney, Brad. [http://www.industryweek.com/ReadArticle.aspx?ArticleID=15897 Scrapping With the Chinese: Schnitzer Steel Industries.] "IndustryWeek", March 6 2008.]

Operations

The company’s primary activities are collecting, processing and recycling scrap metal (ferrous and nonferrous metal) and producing finished steel products such as rebar and wire rod from the recycled materials. [http://wrightreports.ecnext.com/coms2/reportdesc_COMPANY_806882106 Schnitzer Steel Industries.] Wright Reports. Retrieved on April 19 2007.] With operations in both the U.S. and Asia, Schnitzer's activities are divided into three operating groups: Metals Recycling, Steel Manufacturing, and Auto Parts.

The Metals Recycling unit purchases scrap metal and processes that metal for sale to other domestic and international steel makers. The Auto Parts division buys salvaged vehicles to scrap for parts at its auto parts retailers, and then recycles any remaining portions of the vehicles to recyclers. The Steel Manufacturing group makes finished products such as merchant wire, rebar, and coiled rebar, as well as other specialty products.

References

External links

* [http://www.sec.gov/news/press/2007/2007-262.htm SEC charges]
* [http://www.newratings.com/main/company_headline.m?&id=1682012 Schnitzer Steel Industries upgraded to "buy"]
* [http://www.forbes.com/2008/01/07/schnitzer-steel-industries-markets-equity-cx_ml_0107markets23.html Forbes: Schnitzer Steel Looks Rusty]