Schnitzer Steel Industries
|Type||Public (NASDAQ: SCHN)|
|Industry||steel, scrap metal|
|Founded||1906, Portland, Oregon|
|Key people||John D. Carter, Chairman
Tamara L. Lundgren, CEO
|Products||finished steel (rebar, wire rod)|
|Revenue||$1,855 million (FY 2006)|
|Operating income||$170.9 million (FY 2006)|
|Net income||$143.1 million (FY 2006)|
|Divisions||Metals Recycling, Auto Parts,|
|Subsidiaries||Cascade Steel Rolling Mills, Inc., Pick-N-Pull|
Schnitzer Steel Industries, Inc. 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. As of 2006, it was the tenth largest public company in Oregon by market capitalization. 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.
Founded in 1906 by Sam Schnitzer, the company started as a one-person scrap metal recycler. 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.
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. By the end of 2006 Schnitzer operated 28 facilities in 11 states, and by December 2007 increased the number of facilities to 34. 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. In 2008, Tamara Lundgren became the chief executive officer with John Carter leaving that position to become the chairman of the board. The Schnitzer family had maintained control of the corporation through supermajority voting rights until January 2010, when family members had sold off stock and dropped their stake in the company to less than 20 percent.
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. 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.
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