This compares to adjusted earnings per share of $0.09 and earnings per share of $0.03 in the third quarter of fiscal 2013. Adjusted and reported earnings per share both include discrete tax benefits of $0.08 per share in the third quarter of fiscal 2014. The Company generated $73 million in operating cash flow during the first nine months of fiscal 2014, including $27 million in the third quarter.

In the Metals Recycling Business, demand for recycled metals remained steady compared to the second quarter. However, a decline in ferrous prices for shipments early in the quarter led to lower average selling prices which resulted in an estimated adverse impact from average inventory accounting of approximately $10 per ton sequentially. This adverse average inventory impact more than offset the benefits from productivity improvements and cost reductions in the third quarter resulting in operating income per ton of $4 in the Metals Recycling Business. The Auto Parts Business achieved higher car volumes and seasonally stronger retail sales which more than offset the impact of weaker commodity prices and generated a sequentially higher operating margin of 8%. In the Steel Manufacturing Business, stronger nonresidential construction markets drove increased sales volumes and sequentially higher operating income of $5 million.

The Company continued to successfully execute on its $40 million productivity initiatives and cost savings program, approximately 70% of which are expected to be achieved by the end of fiscal 2014. In the third quarter, savings of $9 millionwere generated through our Metals Recycling and Steel Manufacturing Businesses which, together with prior savings, is a year-to-date benefit of $20 million.
 

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in North America with operating facilities located in 14 states, Puerto Rico and Western Canada. The business has seven deep water export facilities located on both the East and West Coasts and in Hawaii and Puerto Rico. The Company's integrated operating platform also includes its auto parts and steel manufacturing businesses. The Company's auto parts business sells used auto parts through its self-service facilities located in 16 states and Western Canada. With an effective annual production capacity of approximately 800,000 tons, the Company's steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 108^th year of operations in 2014.