Q2 2024 Radius Recycling Inc Earnings Call Transcript
Key Points
- Non-ferrous volumes increased year-over-year in Q2 due to strategic investments in advanced metal recovery technologies.
- Achieved the full quarterly run rate associated with the $30 million productivity plan announced last October.
- Expanded productivity plan by an additional $40 million through a 10% reduction of SG&A expense and further production cost efficiencies.
- Positive contribution to performance from advanced non-ferrous recovery systems in the second quarter.
- Finished steel products remained a significant contributor to consolidated performance in Q2, with sales volumes up 5% year-over-year.
- Adjusted EBITDA of $3 million and an adjusted EPS loss of $1.04 in Q2, reflecting challenging market conditions.
- High interest rates and low manufacturing activity are creating tighter supply flows and compressing metal spreads.
- Continued inflationary pressures exacerbating the cyclical headwinds faced by the company.
- Scrap supply flows remained tight during the quarter on lower economic activity, impacting the availability of raw materials.
- Ferrous sales volumes were down 15% sequentially due to constrained supply flows and delays in certain bulk shipments.
Good day and thank you for standing by. Welcome to the Radius Recycling Second Quarter 2024 Earnings Release Call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Michael Bennett, Investor Relations. Please go ahead.
Thank you, Marvin, and good morning. I'm Michael Bennett, the company's Vice President of Investor Relations. I am happy to welcome you to Radius Recycling's earnings presentation for the second quarter of fiscal 2024.
In addition to today's audio comments, we have issued our press release and posted a set of slides, both of which you can access on our website at radiusrecycling.com.
Before we start, let me call your attention to the detailed safe harbor statement on Slide 2, which is also included in our press release and in the company's Form 10-Q, which will be filed later today. As we note on Slide 2, we may make forward-looking statements on our call today
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