Radius Recycling, Inc. reported a net loss of $36.9 million for the first quarter of fiscal 2025, significantly higher than the $17.8 million loss recorded in the same period last year. The company's revenues decreased by 2% to $656.5 million, down from $672.9 million in the prior year. The decline in revenue was attributed to a 5% drop in average selling prices for ferrous products, influenced by increased Chinese steel exports, and a 4% decrease in ferrous volumes. However, nonferrous revenues rose by 8%, reflecting stronger demand and improved pricing in that segment.
The company's operating expenses also saw a reduction, with selling, general, and administrative expenses decreasing by 10% to $56.7 million, compared to $63.1 million in the previous year. This reduction was primarily due to productivity and cost-cutting initiatives implemented throughout fiscal 2024. Despite these efforts, the overall operating loss widened to $24.9 million from $23.0 million a year earlier, driven by increased interest expenses, which rose to $8.9 million from $4.8 million, largely due to higher borrowings and interest rates.
In terms of operational metrics, Radius Recycling's total debt increased to $445 million as of November 30, 2024, up from $415 million at the end of the previous fiscal year. The company reported cash and cash equivalents of $15.2 million, a notable increase from $5.6 million at the end of August 2024. The increase in cash was primarily due to net borrowings used to fund working capital and capital expenditures. The company also maintained a stable employee headcount, with 50 retail self-service auto parts stores and 53 metals recycling facilities.
Looking ahead, Radius Recycling anticipates continued challenges in the market, particularly with fluctuating prices for recycled metals and finished steel products. The company is focused on enhancing its operational efficiency and productivity through ongoing investments in advanced metal recovery technologies and infrastructure upgrades. Additionally, Radius is committed to environmental compliance and plans to invest approximately $20 million in environmental projects during fiscal 2025. The company remains optimistic about its long-term growth prospects, contingent on improving market conditions and successful execution of its strategic initiatives.
About RADIUS RECYCLING, INC.
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