Exhibit 99.1

Schnitzer Reports Fourth Quarter and Full Year Fiscal 2012 Financial Results

Fourth Quarter Revenues $762 million, Adjusted Diluted EPS $0.10 and Cash From Operations $108 million

Full Year Revenues $3.3 billion, Adjusted Diluted EPS $1.11 and Cash From Operations $245 million

PORTLAND, Ore.--(BUSINESS WIRE)--October 25, 2012--Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) today reported adjusted diluted earnings per share of $0.10, excluding a $5 million pre-tax restructuring charge ($0.12 per diluted share) associated with initiatives announced in August. Including the restructuring charge, the Company reported a loss per share of $(0.02) for the fourth quarter ended August 31, 2012. This compares with diluted earnings per share of $1.31 for the fourth quarter of fiscal 2011. For the 2012 fiscal year, Schnitzer reported full year revenues of $3.3 billion, compared to $3.5 billion in fiscal 2011, and adjusted diluted earnings per share of $1.11, excluding the fourth quarter restructuring charge, compared to $4.23 in fiscal 2011. Including the restructuring charge, reported diluted earnings per share were $0.99 for fiscal 2012. Fourth quarter financial results exceeded the Company's recent market outlook primarily due to the achievement of higher than anticipated operational performance in August in our Metals Recycling and Auto Parts businesses.

Our quarterly financial performance was adversely impacted by a rapid decline in selling prices at the beginning of the quarter while the supply of scrap continued to be constrained by weak US GDP growth. As a result of these conditions, average inventory costs did not decline as quickly as cash purchase costs for raw materials, resulting in margin compression. Average inventory costs adversely impacted consolidated operating income by approximately $30 million compared to the third quarter, with nearly two-thirds of this impact affecting our Metals Recycling Business.

“Amid significant global economic uncertainty and declining prices throughout the year, we delivered strong cash flow and relatively stable volumes, demonstrating the flexibility and resiliency of our platform. Despite the challenging market conditions, we generated $245 million in operating cash flow during fiscal 2012 which enabled us to reduce our net leverage to 18% by fiscal year end while returning capital to shareholders through a significant dividend increase and the repurchase of 1.1 million in outstanding shares," said Tamara Lundgren, President and Chief Executive Officer.

"During the fourth quarter, we undertook initiatives in order to extract greater synergies from the significant investments we made in fiscal 2011, to further integrate our Metals Recycling and Auto Parts Businesses, and to reduce our cost base. We expect to drive $25 million in annualized pre-tax savings through the implementation of these initiatives and the benefits of our more streamlined organization. In fiscal 2013, we will continue to focus on maximizing value through our growth strategy of expanding our Metals Recycling export platform and our Auto Parts business and enhancing performance through advanced technologies, operational synergies and continuous improvement initiatives."

Key business drivers during fiscal 2012:

• Metals Recycling Business (MRB) shipped 5.1 million ferrous tons and 629 million nonferrous pounds while continuing to execute our strategy for growth through investment in our Western Canada facilities, achieving higher nonferrous yields and delivering enhanced operational synergies.
• Auto Parts Business (APB) focused on maximizing throughput across its 51 locations, generating an 11% operating margin on an aggregate of 339 thousand cars purchased.
• Steel Manufacturing Business (SMB) achieved slightly below break-even operating performance.

Metals Recycling Business

Sales Volumes: Ferrous sales volumes of 1.2 million tons in the fourth quarter decreased 13% from third quarter levels, primarily due to reduced flows of raw materials resulting from the lower price environment and unusually hot weather. Nonferrous sales volumes of 169 million pounds increased 10% sequentially, primarily due to the impact of increased shipments in August.

Export customers accounted for 78% of total ferrous sales volumes in the fourth quarter. Our ferrous and nonferrous products were shipped to 18 countries, with Turkey, South Korea and Taiwan the top export destinations.

Pricing: Demand softened in the export markets in early June, driving average ferrous net sales prices in the fourth quarter down $46 per ton, or 11%, from third quarter levels. Nonferrous prices decreased 7% in the fourth quarter sequentially primarily due to lower commodity prices.

Margins: Operating income per ferrous ton was $11 in the fourth quarter of fiscal 2012, slightly below the third quarter. Operating performance exceeded our fourth quarter market outlook due to higher than anticipated nonferrous shipments. Overall, the fourth quarter was impacted significantly by the adverse effect of average inventory accounting and the impact of lower volumes on unit costs, partly offset by improved cash metal spreads generated in the early part of the quarter and reduced SG&A which included a decrease in environmental liabilities of $2 million.

Auto Parts Business

Revenues: Revenues in the fourth quarter decreased 14% sequentially primarily due to the impact of falling commodity prices and seasonally lower admissions.

Margins: Operating margins during the fourth quarter were compressed by the significant negative impact from average inventory accounting, as well as effects of falling commodity prices on sales and the seasonal impact of hot weather on admissions. Operating performance exceeded our fourth quarter market outlook due to higher than anticipated ferrous and nonferrous sales volumes.

Steel Manufacturing Business

Sales Volumes: Finished steel sales volumes of 126 thousand tons increased 22% from the third quarter and approximated the prior year quarter.

Pricing: Average net sales prices for finished steel products decreased 7% primarily due to the impact on selling prices of decreases in the cost of raw materials.

Margins: Higher volumes were offset by lower selling prices which, combined with unscheduled downtime and an adverse impact of average inventory accounting, resulted in an operating loss of $3 million during the fourth quarter.

Cost Reductions

In August, we announced initiatives targeted to generate greater synergies from our fiscal 2011 investments and to realign our organization by further integrating our Metals Recycling and Auto Parts Businesses, streamlining our corporate functions, and reducing organizational layers. These initiatives are expected to lower annual pre-tax operating costs by $25 million. Total restructuring charges are expected to be approximately $12 million pre-tax. During the fourth quarter, we incurred $5 million of the restructuring charge, or approximately $0.12 diluted earnings per share. We expect to recognize the balance during fiscal 2013. The restructuring charges primarily represent cash costs of $4 million from the elimination of approximately 300 positions, $5 million from contract termination costs, primarily from the consolidation of certain administrative offices, and $3 million of other costs associated with the restructuring.

Corporate Items

During the quarter, the Company generated strong operating cash flows of $108 million. For fiscal year 2012, operating cash flows of $245 million enabled the Company to reduce debt by $69 million to $335 million while investing $85 million in capital expenditures and acquisitions, and returning $45 million to shareholders through share repurchases and higher dividend payments.

The Company's effective tax rate for the fiscal year 2012 was 32.7%. This was slightly lower than the third quarter rate due to state tax benefits in the fourth quarter. Corporate SG&A in the fourth quarter included a reduction in compensation accruals of $2 million.

Analysts' Conference Call: Fourth Quarter of Fiscal 2012

A conference call and slide presentation to discuss results will be held today, October 25, 2012, at 11:30 a.m. EDT hosted by Tamara Lundgren, President and Chief Executive Officer, and Richard Peach, Chief Financial Officer. The call and the slides will be webcast and accessible on the Company's website at www.schnitzersteel.com.

Summary financial data is provided in the following pages. The slides and related materials will be available prior to the call on the website.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined under SEC rules such as adjusted operating income, adjusted net income attributable to SSI and adjusted diluted earnings per share attributable to SSI. As required by SEC rules, the Company has provided reconciliations of these measures to the most directly comparable U.S. GAAP measures. Management believes that each of the foregoing non-GAAP financial measures provides a meaningful presentation of the Company's results from its core business operations excluding adjustments for restructuring charges that are not related to the Company's ongoing core business operations and improves the period-to-period comparability of the Company's results from its core business operations. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the most directly comparable U.S. GAAP measures.

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 58 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 51 self-service facilities located in 14 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 106^th year of operations in 2012.

Safe Harbor for Forward-Looking Statements

Statements and information included in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Except as noted herein or as the context may otherwise require, all references to “we,” “our,” “us” and “SSI” refer to the Company and its consolidated subsidiaries.

Forward-looking statements in this press release include statements regarding our expectations, intentions, beliefs and strategies regarding the future, including statements regarding trends, cyclicality and changes in the markets we sell into; strategic direction; changes to manufacturing and production processes; the cost of compliance with environmental and other laws; expected tax rates, deductions and credits; the realization of deferred tax assets; planned capital expenditures; liquidity positions; ability to generate cash from continuing operations; the potential impact of adopting new accounting pronouncements; expected results, including pricing, sales volumes and profitability; obligations under our retirement plans; savings or additional costs from business realignment and cost containment programs; and the adequacy of accruals.

When used in this report, the words “believes,” “expects,” “anticipates,” “intends,” “assumes,” “estimates,” “evaluates,” “may,” “could,” “opinions,” “forecasts,” “future,” “forward,” “potential,” “probable,” and similar expressions are intended to identify forward-looking statements.

We may make other forward-looking statements from time to time, including in reports filed with the Securities and Exchange Commission, press releases and public conference calls. All forward-looking statements we make are based on information available to us at the time the statements are made, and we assume no obligation to update any forward-looking statements, except as may be required by law. Our business is subject to the effects of changes in domestic and global economic conditions and a number of other risks and uncertainties that could cause actual results to differ materially from those included in, or implied by, such forward-looking statements. Some of these risks and uncertainties are discussed in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent annual report on Form 10-K and our quarterly report on Form 10-Q. Examples of these risks include: potential environmental cleanup costs related to the Portland Harbor Superfund site; the impact of general economic conditions; volatile supply and demand conditions affecting prices and volumes in the markets for both our products and raw materials we purchase; difficulties associated with acquisitions and integration of acquired businesses; the impact of goodwill impairment charges; the realization of expected cost reductions related to restructuring initiatives; the inability of customers to fulfill their contractual obligations; the impact of foreign currency fluctuations; potential limitations on our ability to access capital resources and existing credit facilities; the impact of the consolidation in the steel industry; the impact of imports of foreign steel into the U.S.; inability to realize expected benefits from investments in technology; freight rates and availability of transportation; product liability claims; costs associated with compliance with environmental regulations; the adverse impact of climate change; inability to obtain or renew business licenses and permits; compliance with greenhouse gas emission regulations; reliance on employees subject to collective bargaining agreements; and the impact of the underfunded status of multiemployer plans in which we participate.

CONTACT:
Schnitzer Steel Industries, Inc.
Investor Relations:
Alexandra Deignan, 646-278-9711
adeignan@schn.com
or
Media Relations:
Chip Terhune, 503-265-6370
cterhune@schn.com
or
Company Info:
www.schnitzersteel.com
ir@schn.com