PORTLAND, Ore. - Radius Recycling, Inc. (NASDAQ: RDUS) disclosed its financial results for the first quarter of fiscal 2024, revealing a deeper loss than analysts had anticipated. The company posted an adjusted loss per share from continuing operations of -$1.04, which fell short of the consensus estimate by $0.38. Revenue for the quarter was reported at $621 million, not meeting the analyst expectation of $646.85 million.
In comparison to the same quarter last year, Radius Recycling saw a decrease in revenue from $756 million, marking a YoY decline. The company faced several challenges during the quarter, including tight supply flows for recycled metals and adverse weather conditions that affected sales volumes and metal spreads. Moreover, the company experienced a 15% sequential decrease in ferrous sales volumes due to lower supply flows and shipment delays.
Despite these headwinds, Radius Recycling reported a 7% YoY increase in nonferrous sales volumes and a 5% YoY increase in finished steel sales volumes, buoyed by demand in the Western U.S. and production from advanced recovery technologies.
To counteract the unfavorable market conditions, the company has initiated a cost reduction target, increasing it by $40 million through a 10% reduction in selling, general, and administrative expenses and improved production cost efficiencies.
Tamara Lundgren, Chairman and Chief Executive Officer, commented on the quarter, stating, "While the near-term market conditions for recycled metals are challenging amid cyclical headwinds, we continue to move forward with our strategic initiatives to strengthen our Company and position ourselves to benefit from an improvement in market conditions and positive structural demand tailwinds."
The company's financial strategy also included returning capital to shareholders through its 120th consecutive quarterly dividend. However, Radius Recycling did not provide specific guidance for the upcoming quarter or fiscal year in the press release, nor was there an analyst consensus available for comparison.
Radius Recycling's stock movement in response to the earnings report and the drivers behind any potential move were not disclosed, indicating that the market's reaction to the company's performance remains to be seen.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.