Scrap processing and steelmaking companies reported a 41% increase in profit from the previous quarter.
Schnitzer Steel Industries Inc., headquartered in Portland, Oregon, reported an increase in net income for the third quarter of fiscal 2021 ending May 31, 2021.
The scrap metal recycling and automobile recycling company also operates an electric arc furnace (EAF) steel plant with net income of $65 million in the most recent quarter. This is an increase of 41% from the net income of $46 million in the previous quarter. A year ago, in the quarter ended May 31, 2020, Schnitzer had a net loss of $5 million.
"The company's performance in the third quarter of fiscal 2021 benefited from strong global demand for recycled metals and West Coast finished steel. The selling prices of ferrous, non-ferrous and finished steel reached multi-year highs this quarter," the company said. The company is in a press release summarizing its earnings.
The company added, “This quarter’s results reflect operating leverage gains from the significant increase in sales of ferrous, non-ferrous and finished steel products from the previous quarter.”
Tamara Lundgren, Chairman and CEO of Schnitzer Steel Industries, commented: “Our financial and operating performance in the third quarter was Schnitzer’s best in more than a decade. The price of recycled ferrous and non-ferrous metals rose to multi-year highs this quarter. The peaks and troughs are higher than the levels we have seen in the past decade. The post-pandemic economic recovery and positive structural commodity trends are causing price levels to rise.”
Regarding the company’s operations, Lundgren said: “In this quarter, we started to increase the output of two major advanced metal recycling technology systems, and another system will be put into use at the end of the calendar year. More non-ferrous metals will be extracted from our crushing activities. It is an important value-added process that is directly in line with global decarbonization and demand trends. Increasing the use of ferrous and non-ferrous metal scrap in industrial production is a good example of how the tools of the'old economy' will lead the way to decarbonization in the new economy example of."
The company reported that in the time frame from March to May 2021, compared with the previous fiscal quarter, “driven by strong global demand, sales of ferrous metals increased by 24%, and sales of non-ferrous metals increased by 15%. ."
Compared with the previous quarter, the average net selling price of ferrous metals increased by 3%, while the average selling price of non-ferrous metals increased by 17%. Schnitzer stated that its finished steel sales increased by 12%, and "the mill utilization rate for the quarter was 98%." The average net selling price of finished steel increased by 16%.
The company launched the platform at the 2021 Waste Expo.
AMCS is a technology supplier in the waste, recycling and resource management industries. It has a US office in Boston and will provide its AMCS platform for the summer release, which showcases the latest solutions for smart collection, smart recycling, and smart participation. The company first launched the AMCS platform summer release at the Waste Expo in Las Vegas from June 28th to 30th.
According to the AMCS press release, the highlights of the AMCS platform release are its embedded transportation management system (TMS) and new data-rich telematics services for waste transporters.
Elaine Treacy, AMCS Global Product Director, said: "We are honored to be the first company in the waste and recycling market to provide an industry-specific transportation management system embedded in the AMCS platform that eliminates the need for isolated application interfaces." "We are passing. Provide a smarter platform to solve one of the biggest challenges facing companies in the industry, where CRM, billing, scale, and material management work seamlessly and in real time to take full advantage of the full potential of the smart waste collection process."
The new AMCS Telematics service is designed to capture a wealth of tracking and telematics data, such as driver behavior, engine performance and fuel usage. It also provides detailed route information and provides planners with comprehensive visibility through an intuitive, data-rich dashboard.
The company said that the transportation management system aims to automate all aspects of transportation. This includes resource and roster management, planning, execution, real-time monitoring, route optimization and analysis. The process is enhanced with a modern browser-based user experience and aims to increase planning productivity through ease of use and automation of frequent planning tasks. This process eliminates the need for complex integration between different systems and vendors.
Other key highlights of the summer release include:
The joint venture will produce natural gas fuel delivery systems for the commercial vehicle market in North America.
Cummins, a power solutions manufacturer based in Columbus, Indiana, and Rush Enterprises, a commercial vehicle industry solutions provider based in New Braunfels, Texas, announced that Cummins has announced an agreement that Cummins will acquire Momentum Fuel Technologies’ 50% equity. Rush Enterprise.
According to Cummins’ press release, the proposed transaction is expected to be completed later this year, provided that the usual pre-transaction activities are completed and the mutually agreed transaction documents are approved. The joint venture between Rush Enterprises and Cummins will produce natural gas fuel delivery systems for the commercial vehicle market in North America. These systems provide the advantages of Momentum Fuel Technologies' compressed natural gas (CNG) fuel delivery system, Cummins' power system expertise and the supporting infrastructure of the two companies.
"This cooperation demonstrates Cummins' continued commitment to natural gas power systems," said Srikanth Padmanabhan, President of Cummins Engine Business Unit. "This partnership will improve customer service for CNG and [Renewable Natural Gas or RNG] through an improved support network. We are excited to expand our network of clean and reliable power solutions."
The joint venture will provide after-sales support through Rush Truck Centers dealers and Cummins dealers, which can provide services for engines and fuel delivery systems. The cooperation between Cummins and Rush Enterprises will provide customers with an extensive network of CNG auto parts and services, which will benefit them. Both Cummins and Rush Enterprises' respective networks (representing more than 250 locations in the United States and Canada) will be staffed with certified technicians and a comprehensive CNG auto parts inventory.
WM Rush, Chairman, CEO and President of Rush Enterprises Inc said: “The direct environmental benefits of CNG and RNG, coupled with the upcoming regulatory requirements, will drive the growth of natural gas vehicles in the foreseeable future. This partnership will enable Through our common and extensive Cummins and RushCare aftermarket solution portfolio, Rush Enterprises continues to provide unparalleled support to our customers and keep trucks running nationwide."
The panelists detailed what business owners should know when considering selling their business.
Despite fears that the COVID-related impact may slow down M&A activities entering 2021, the demand for attractive waste businesses has kept pace in the first half of this year.
Hosted by Bert Rosica, the managing director of AE Rosica & Co., the theme of the waste expo on June 30 is "Understanding your company's valuation". The panellists are Rob Michalik, managing partner of Kinderhook Industries; Joe Cassin, waste Vice President of Management Business Development; and Mike Teplitsky, partner of Wynnchurch Capital.
The panel discussion focused on the parameters that affect valuation, what companies are looking for when evaluating companies, and how potential sellers can maximize value when negotiating.
According to Michalik, the company's management infrastructure is critical to assessing value.
"For us as financial investors, we are focusing on the team," he said. "For [platform acquisition], we hope to have the right team to develop the business. When we consider acquiring a company, management capabilities and senior management in the organization are the most important to us. We ultimately hope to support a team to build Company. There is no great talent without a great company. Over time, what we have learned is that when we succeed, it is because our management team has a great strategy, the rhythm and pace of their business, And they have achieved success in this regard."
In addition to a strong team, Michalik is also looking for growth opportunities in the company's market when evaluating acquisitions.
"We want to see an opportunity to develop a mid-market business with a revenue of 20-50 million U.S. dollars, and we want to figure out how to grow it to a 5-year time frame in a time of 300 to 150 million U.S. dollars," he Added.
Cassin shared that as the largest solid waste player, Waste Management has a clear set of criteria when assessing a company's potential acquisitions.
"As a strategic buyer, we are looking for well-operated companies with good equipment with a history of less than 15 or 20 years. We are looking for a good and reliable customer base and long-term contract cash flow and substantial profits. Due to waste management In the North American footprint, many of our transactions are considered to be compromises, so we can eliminate a lot of back-office staff and get a lot of synergy from [our transactions]," he said.
Michalik said that when reviewing a company, "the quality of revenue starts with the quality of the customer," and the company's waste management is its most important asset. He pointed out that in order to control this waste, the company needs to provide quality services at reasonable prices.
Michalik said that because of the widespread operational hazards in the solid waste industry, companies with a good safety record have a great advantage when conducting procurement analysis.
"One of the interesting things in the garbage industry right now is that insurance premiums are soaring. Workers, medical care, collisions-all these premiums continue to soar. ... Independents are hit, so safety agreements are crucial," he said.
Michalik said that for every business purchased by the company, if their trucks do not have a camera system installed, they will install it on the "first day" to improve training and accountability while reducing responsibility.
When talking about the experience of investing in waste equipment manufacturers, Teplitsky said that the systems and equipment owned by the company are some of the core issues that Wynnchurch Capital focused on before investing. He also said that contrary to popular belief, private equity firms often seek to inject capital into companies rather than cut costs as a way to increase value.
"Private equity has a reputation for entering and divesting companies," he said. "The reality is that when we get involved, many times, as we increase investment, we will enter and invest in new systems and tools and hire new people."
Due to the complexity of conducting due diligence on companies, Cassin said that business owners can speed up the process by lining up their ducks before contacting potential suitors. He said that the owners should organize and find an experienced business lawyer to help guide them through the process.
"Before selling, entrepreneurs usually think,'Oh, I don't want to spend money on new software packages or new equipment because I want to sell.' My advice is that when you are ready to sell, you should always like to own it Run your business in the same way.... If you are happy to own your business and don’t care whether to sell it, then you have a better chance of selling it. If you underinvest and suddenly you get stuck, you will be very anxious ,"He said.
Teplitsky said that considering that valuation is essential, it should be carefully studied.
"You have to figure out what your true valuation is. You need to talk to people, get advice and figure out whether [what you want] is realistic. Most transactions die because of valuation [differences]," Tepp Litsky said.
Rosica ended the meeting and made a breakup proposal for those considering selling.
"Sellers' expectations need to be consistent with market reality. If they are inconsistent, then now is not the time to sell," he said.
The value of waste and environmental service companies fluctuates based on many market conditions and internal factors. Understanding value trends is essential for those considering buying or selling businesses. This meeting will discuss business valuation within the scope of the M&A market, and explore where the value may go in the near future.
A federal judge dismissed a lawsuit filed by Southside Recycling against the City of Chicago in May.
A federal judge dismissed a lawsuit brought by Chicago-based Southside Recycling against the City of Chicago.
Southside Recycling built a waste recycling facility on the southeastern side of the city and filed a federal lawsuit in mid-May, asking the court to order the city of Chicago to issue a final license to the company. The lawsuit alleges that the city mistakenly failed to issue the final permit required for the facility to start operating, despite admitting for months that Southside Recycling has met its requirements.
Southside Recycling and RMG Investment Group LLC filed a lawsuit in the U.S. District Court of Chicago against the Director of the City of Chicago and the Chicago Department of Public Health Allison Arwady. The company sought a court order to instruct Arwady to issue a final permit, claiming that the city violated its agreement with RMG and seized private property without fair compensation, violating the company's constitutional rights. Due to the delay in the license, the company also requested more than 100 million U.S. dollars in compensation.
US District Judge Robert M. Dow Jr. rejected Southside Recycling's claim that its constitutional rights had been violated. He wrote that the arguments in the dispute are more suitable for the state courts, and the case has been terminated.
"Southside Recycling will immediately seek a ruling from the state court, ordering the city to issue a license based on the city’s breach of its promise and we have met every requirement set by the city’s own rules, and businesses have the right to rely on these requirements. ," Southside Recycling Said in response to the ruling. "Despite multiple attempts since the beginning of May to understand how and when the city intends to proceed, the additional analysis allegedly planned to be carried out has not yet been determined and the timing has not been determined."
The company added that its project was shelved "causing damage to the environment and the local metal recycling market" and that "the only other shredder in Chicago continues to operate without pollution control."
"We will continue to fight for our right to provide services to suppliers and provide Chicago with key metal recycling services responsibly," the company concluded.