Shares of Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) surged on Monday after the company reported a higher-than-expected quarterly profit.
Shares jumped $9.04, or 17.3 percent to $61.36 by the end of regular trading hours on the Nasdaq Stock Market.
The Portland Ore.-based metals recycler posted a 45 percent rise in its fiscal third quarter profit, reporting a net-income of $43.8 million on Monday, or $1.47 a share, up from $30.2 million, or 98 cents a share, in the year-ago period.
Revenue also rose to $709 million, up 40 percent.
Analysts polled by Thomson Financial had forecast earnings of $1.07 a share on revenue of $632 million.
We had strong financial results in all of our businesses, said John Carter, President and CEO. Net income improved 54% from the second quarter as we took advantage of the positive markets in which we are operating by continuing our focus on maximizing the utilization of our assets.
Schnitzer said its Auto Parts Business doubled its operating income from the second quarter due to higher parts sales and scrap and core volumes.
The Steel Manufacturing Business had higher volumes and record average sales prices, which helped it post a 47 percent sequential improvement in operating income.