8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 3, 2008

Schnitzer Steel Industries, Inc.
(Exact Name of Registrant as Specified in Its Charter)

Oregon	0-22496	93-0341923
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

3200 N.W. Yeon Ave. P.O. Box 10047 Portland, OR	97296-0047
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number Including Area Code: (503) 224-9900

NO CHANGE
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02     Results of Operations and Financial Condition.

On April 3, 2008, Schnitzer Steel Industries, Inc. (the “Company”) issued a press release announcing financial results for the fiscal year ended February 29, 2008. A copy of this press release is being furnished as Exhibit 99.1 to this report on Form 8-K.

Item 9.01     Financial Statements and Exhibits.

(d)	Exhibits
99.1	Press Release of Schnitzer Steel Industries, Inc. issued on April 3, 2008.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Schnitzer Steel Industries, Inc.
		(Registrant)
Dated:	April 3, 2008	By:	/s/ Richard D. Peach
		Name:	Richard D. Peach
		Title:	Chief Financial Officer

Exhibit Index

Exhibit No.	Description
99.1	Press Release of Schnitzer Steel Industries, Inc. issued on April 3, 2008.

EX-99.1

Exhibit 99.1

Schnitzer Steel Reports 34% Increase in Second Quarter Earnings Per Share

PORTLAND, Ore.--(BUSINESS WIRE)--Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today reported net income of $36 million, or $1.25 per diluted share, for the fiscal 2008 second quarter ended February 29, 2008. The earnings per share was a second quarter record and quarterly revenues of $751 million were the highest ever. Compared to the second quarter of fiscal 2007, revenues increased 24% and earnings per share increased 34%.

(in millions, except per-share data)	Second Quarter 2008		Second Quarter 2007		First Quarter 2008		Year to Date 2008		Year to Date 2007
Revenues	$	751	$	604	$	604	$	1,355	$	1,114
Operating Income	$	59	$	47	$	41	$	100	$	81
Net Income	$	36	$	28	$	25	$	61	$	50
Diluted EPS	$	1.25	$	0.93	$	0.85	$	2.10	$	1.60

“Our second quarter operating results were strong,” said John D. Carter, President and Chief Executive Officer. “All three of our operating businesses recorded year over year growth in both revenues and operating income. Driven by continued strong worldwide demand for recycled metals, prices for ferrous scrap reached unprecedented levels, and our export platform continued to provide us the ability to sell to the regions of the world where demand was greatest. Prices in our Metals Recycling Business not only more than offset freight price increases which occurred in the first quarter of this year but also outpaced increases in the cost of acquiring raw materials. As a result, we were able to expand margins both sequentially and compared to the prior year.”

“The Auto Parts Business continued to show year over year improvements in both revenues and operating income through our ongoing focus on increases in vehicle purchases,” added Carter. “The Steel Manufacturing Business benefited from positive supply and demand dynamics as selling prices increased due to shortages in finished steel resulting from a low level of imports,” he concluded.

Commenting on the second quarter results, Tamara Lundgren, Executive Vice President and Chief Operating Officer said, “The results in our Metals Recycling Business were driven by our ability to maximize the benefits from the strong markets through operating efficiencies from our capital investment program as well as our overall scale. In our Auto Parts Business, the improved extraction and sales of cores helped offset the normal seasonal decline in self-service parts sales and in the Steel Manufacturing Business our ability to utilize our increased capacity during the first quarter allowed us to post record sales volumes despite planned maintenance shutdowns of the melt shop and largest rolling mill during the second quarter.”

Metals Recycling Business

The worldwide demand for recycled metal continued to remain strong.

($ in millions, except selling prices; ferrous volume in thousands of long tons, non-ferrous volumes in millions of pounds)	Second Quarter 2008		Second Quarter 2007		First Quarter 2008		Year to Date 2008		Year to Date 2007
Total Revenues	$	597	$	486	$	481	$	1,078	$	887
Ferrous Revenues	$	497	$	396	$	388	$	885	$	711
Ferrous Volumes (Processing/ Trading)		1,128/149		1,143/276		1001/135		2,129/284		2,011/596
Avg. Net Ferrous Selling Prices ($/LT)(1) (Processing/ Trading)	$	326/337	$	237/257	$	280/313	$	305/326	$	232/254
Nonferrous Volumes		96		90		89		185		170
Avg. Net Nonferrous Selling Prices ($/LB)(1)	$	0.98	$	0.96	$	1.00	$	0.99	$	0.99
Operating Income(2)	$	52	$	40	$	30	$	82	$	65
(1) Selling prices are shown net of freight
(2) Includes operating income from joint ventures

Revenues for the Metals Recycling Business increased 23% over the second quarter of 2007. The increase was a result of record ferrous scrap prices and higher nonferrous sales volumes. Average net ferrous processing selling prices were $326/ton, a 38% year over year increase. Nonferrous sales volumes increased 7% to 96 million pounds and, together with the higher ferrous selling prices, offset a 46% decline in ferrous trading sales volumes.

Compared to the first quarter of 2008, revenues increased 24% due to higher ferrous prices and ferrous and nonferrous processing volumes. The second quarter benefited from five shipments of ferrous scrap which were delayed into the quarter due to a tight shipping market in the first quarter.

The worldwide markets for ferrous scrap metal were robust. Strong demand for scrap resulted in an increase in average gross prices, which more than offset the rapid first quarter increase in export freight costs. Combined with moderating freight costs, average net sales prices increased significantly on both a year over year and quarter over quarter basis. Nonferrous prices were consistent with prior year and quarter levels.

Operating income for the quarter was 31% higher than the second quarter of 2007 due to increases in net ferrous sales prices, which more than offset higher raw materials costs, and higher nonferrous volumes and prices. Compared to the first quarter of 2008, operating income increased 75% due to higher ferrous sales volumes and prices, as well as higher nonferrous volumes.

Auto Parts Business

The Auto Parts Business continued to show healthy year over year growth in sales and operating income due to its focus on increasing volumes and higher prices for cores and scrap.

($ in millions, except locations)	Second Quarter 2008		Second Quarter 2007		First Quarter 2008		Year to Date 2008		Year to Date 2007
Revenues	$	77	$	60	$	72	$	149	$	121
Operating Income	$	7	$	5	$	7	$	14	$	9
Locations (end of quarter)		53		52		53		53		52

Revenues for the Auto Parts Business increased 29% over the same period last year, primarily as a result of a 22% increase in self-service volumes, higher prices for cores and scrap and improved full-service parts sales. Compared to the first quarter of 2008, revenues increased due to higher prices for scrap and cores and higher full-service parts sales, which offset the expected seasonal decline in self-service parts sales.

Operating income increased 31% from the second quarter of 2007, primarily due to higher self-service volumes and improved core yields. Compared to the first quarter of 2008, operating income declined 9% due to lower seasonal self-service parts sales.

Steel Manufacturing Business

The Steel Manufacturing Business achieved record sales volumes.

($ in millions, except, except selling prices; volume in thousands of tons)	Second Quarter 2008		Second Quarter 2007		First Quarter 2008		Year to Date 2008		Year to Date 2007
Revenues	$	143	$	99	$	110	$	253	$	195
Finished Goods Avg. Net Selling Prices ($/T)	$	616	$	536	$	601	$	609	$	542
Finished Goods Sales Volume		202		177		174		376		344
Operating Income	$	13	$	12	$	14	$	28	$	27

Revenues for the Steel Manufacturing Business rose 45% on a year over year basis, primarily due to an $80 per ton, or 15%, increase in average sales prices and a 25 thousand ton, or 14%, increase in sales volumes for finished goods. Sales volumes were a quarterly record. Compared to the first quarter of 2008, revenues increased 31% on higher prices and volumes despite softening demand, particularly in the Southwestern region of the U.S., as a significant decline in imported steel reduced the volume of finished steel products available for sale in the west coast markets.

Year over year operating income increased 11% as the higher volumes were only partially offset by a lower metal spread. Compared to the first quarter, operating income declined 8% as a lower metal spread and costs related to the planned shutdown of the melt shop and one of the rolling mills for heavy maintenance offset higher sales volumes achieved during the quarter.

Share Repurchase Program

During the quarter, the Company repurchased 145,500 shares of its Class A common stock at an average cost of $50/share. The Company is authorized by the Board of Directors to repurchase an additional 1.7 million shares.

Outlook

The Company said the factors that will affect its results in the third quarter of 2008 include:

Metals Recycling Business:

Pricing. The export markets for ferrous scrap metal have strengthened significantly, and domestic demand is also firming. As a result, based on orders received to date, average ferrous selling prices, net of freight, are expected to increase from $75 to $100/ton over the net prices received in the recently completed second quarter. Nonferrous prices are expected to increase slightly.

Sales volumes. Third quarter ferrous processing sales volumes are expected to approximate the volumes shipped in the second quarter. Quarter over quarter nonferrous sales volumes are expected to increase approximately 10% and approximate the volumes shipped in the third quarter of fiscal 2007.

Margins. Export selling prices are expected to increase more than domestic prices, resulting in improved margins on ferrous processing export sales on both a quarter over quarter and year over year basis.

Auto Parts Business:

Revenue. All sources of revenue are expected to show improvement compared to both the third quarter of 2007 and the second quarter of 2008 due to higher volumes, higher prices for recycled metals and higher parts sales.

Margins. Margins in the third quarter are expected to improve from the second quarter of this year due to seasonal improvements in parts sales. Compared to the same period in 2007, higher costs for scrapped vehicles are expected to partially offset the benefit of higher revenues and result in operating margins which decline on a percentage basis.

Steel Manufacturing Business:

Pricing. Market prices for finished steel products are expected to remain strong despite soft domestic demand as the level of import activity continues to remain low. Higher raw material costs are also expected to contribute to higher selling prices as supply conditions permit steel manufacturers to pass on a portion of these higher costs. As a result of these conditions, net average selling prices for the third quarter are expected to increase approximately 10-15% over net prices received in the second quarter.

Volumes. Sales volumes are expected to remain at relatively high levels and approximate the record volumes shipped in the recently completed second quarter.

Margins. Compared to the third quarter of 2007, the spread between selling prices and scrap costs is expected to narrow, and coupled with higher overall revenues, is expected to result in lower margins on a percentage basis. Compared to the recently completed second quarter, higher production volumes in both the melt shop and the rolling mills and the impact of costs incurred in the second quarter for planned maintenance are expected to offset a lower metals spread and result in improved margins.

Second Quarter 2008 Conference Call

A conference call to discuss results will be held today, April 3, 2008, at 11:30 a.m. EDT, hosted by John Carter, Chief Executive Officer, and Richard Peach, Chief Financial Officer. The call will be webcast and is accessible on Schnitzer Steel's web site at www.schnitzersteel.com.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 36 operating facilities located in 11 states throughout the country, including six export facilities located on both the East and West Coasts and in Hawaii. The Company’s vertically integrated operating platform also includes its auto parts and steel manufacturing businesses. The Company’s auto parts business sells used auto parts through its 35 self-service facilities and 18 full-service facilities located in 14 states and in western Canada. With an annual production capacity of over 750,000 tons, the Company’s steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 102nd year of operations in fiscal 2008.

This news release, particularly the Outlook section, contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”) which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the Company’s outlook for the business and statements as to expected pricing, sales volume, operating margins and operating income. Such statements can generally be identified because they contain “expect,” “believe,” “anticipate,” “estimate” and other words that convey a similar meaning. One can also identify these statements as statements that do not relate strictly to historical or current facts. Examples of factors affecting the Company that could cause actual results to differ materially from current expectations are the following: volatile supply and demand conditions affecting prices and volumes in the markets for both the Company’s products and the raw materials it purchases; world economic conditions; world political conditions; changes in federal and state income tax laws; government regulations and environmental matters; impact of pending or new laws and regulations regarding imports and exports into the United States and other foreign countries; foreign currency fluctuations; competition; seasonality, including weather; energy supplies; freight rates and availability of transportation; loss of key personnel; expectations regarding the Company’s compliance program; the inability to obtain sufficient quantities of scrap metal to support current orders; purchase price estimates made during acquisitions; business integration issues relating to acquisitions of businesses; new accounting pronouncements; availability of capital resources; creditworthiness of and availability of credit to suppliers and customers; and business disruptions resulting from installation or replacement of major capital assets, as discussed in more detail in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. One should understand that it is not possible to predict or identify all factors that could cause actual results to differ from the Company’s forward-looking statements. Consequently, the reader should not consider any such list to be a complete statement of all potential risks or uncertainties. The Company does not assume any obligation to update any forward-looking statement.

For more information about Schnitzer Steel Industries, Inc. go to www.schnitzersteel.com.

SCHNITZER STEEL INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
(in thousands, except per share amounts)
(Unaudited)
	For the Three Months Ended						For the Six Months Ended
	February 29,			February 28,			February 29,			February 28,
	2008			2007			2008			2007
REVENUES:
Metals Recycling Business:
Ferrous sales:
Processing	$	438,976			315,930			777,926			539,022
Trading		58,112			80,414			107,443			171,927
Nonferrous sales		96,158			87,931			185,764			169,925
Other sales		3,311			1,845			6,896			5,731
Total sales		596,557			486,120			1,078,029			886,605
Auto Parts Business		77,333			59,786			149,496			120,594
Steel Manufacturing Business		143,498			98,924			253,187			194,984
Intercompany sales eliminations		(65,916	)		(40,388	)		(125,342	)		(87,887	)
Total	$	751,472		$	604,442		$	1,355,370		$	1,114,296
INCOME (LOSS) FROM OPERATIONS:
Metals Recycling Business:
Processing	$	48,756			38,814			77,948			62,707
Trading		3,184			942			3,628			1,892
Auto Parts Business		6,540			5,007			13,754			8,802
Steel Manufacturing Business		13,165			11,910			27,509			27,269
Corporate expense		(11,993	)		(11,074	)		(21,505	)		(20,769	)
Intercompany eliminations		(855	)		1,665			(1,169	)		939
Total	$	58,797		$	47,264		$	100,165		$	80,840
NET INCOME	$	35,871		$	28,446		$	60,582		$	49,604
BASIC EARNINGS PER SHARE	$	1.27		$	0.94		$	2.13		$	1.62
DILUTED EARNINGS PER SHARE	$	1.25		$	0.93		$	2.10		$	1.60
SHARE INFORMATION (THOUSANDS):
Basic shares outstanding		28,242			30,366			28,386			30,556
Diluted shares outstanding		28,791			30,607			28,916			30,906

SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share amounts)
(Unaudited)
	For the Three Months Ended						For the Six Months Ended
	February 29,			February 28,				February 29,		February 28,
	2008			2007				2008		2007
Revenues	$	751,472		$	604,442		$	1,355,370		$	1,114,296
Cost of goods sold		642,395			515,618			1,161,772			950,324
Selling, general and administrative		51,917			42,741			96,810			85,599
(Income) from joint ventures		(1,637	)		(1,181	)		(3,377	)		(2,467	)
Operating income		58,797			47,264			100,165			80,840
Other income (expense):
Interest expense		(2,648	)		(2,305	)		(4,996	)		(3,367	)
Other income (expense), net		97			285			710			1,402
		(2,551	)		(2,020	)		(4,286	)		(1,965	)
Income before income taxes and minority interests		56,246			45,244			95,879			78,875
Income tax expense		(19,881	)		(16,265	)		(34,106	)		(28,336	)
Income before minority interests		36,365			28,979			61,773			50,539
Minority interests, net of tax		(494	)		(533	)		(1,191	)		(935	)
Net income	$	35,871		$	28,446		$	60,582		$	49,604
Basic earnings per share	$	1.27		$	0.94		$	2.13		$	1.62
Diluted earnings per share	$	1.25		$	0.93		$	2.10		$	1.60

Schnitzer Steel Industries, Inc.
Selected Operating Statistics
(Unaudited)
					Total										Total
	Q1 FY08		Q2 FY08		FY08		Q1 FY07		Q2 FY07		Q3 FY07		Q4 FY07		FY07
Metals Recycling Business
Ferrous Recycled Metal Selling Prices ($/LT)(1)
Domestic	$	279	$	323	$	302	$	219	$	233	$	293	$	273	$	256
Exports		280		329		307		230		238		295		292		266
Total Processing		280		326		305		226		237		294		287		263
Trading		313		337		326		252		257		308		298		279
Ferrous Processing Sales Volume (LT)
Cascade		179,686		170,221		349,907		191,090		151,383		185,281		176,768		704,522
Domestic		178,833		210,825		389,658		155,970		174,752		199,587		191,250		721,559
Export		642,142		746,736		1,388,878		521,200		816,683		643,031		884,104		2,865,018
Total Processed		1,000,661		1,127,782		2,128,443		868,260		1,142,818		1,027,899		1,252,122		4,291,099
Ferrous Trading Sales Volume (LT)
Trading		134,957		148,899		283,856		320,018		276,220		362,305		253,281		1,211,824
Total Ferrous Sales Volume (LT)		1,135,618		1,276,681		2,412,299		1,188,278		1,419,038		1,390,204		1,505,403		5,502,923
Nonferrous Average Price ($/pound)(1)	$	1.000	$	0.980	$	0.988	$	1.017	$	0.964	$	1.049	$	1.042	$	1.020
Nonferrous Sales Volume (pounds, in thousands)		88,808		96,278		185,086		79,729		90,140		108,149		105,068		383,086
Steel Manufacturing Business
Finished Goods Selling Prices ($/NT)(1)
Average	$	601	$	616	$	609	$	548	$	536	$	596	$	617	$	574
Sales Volume (NT)
Finished Goods		174,230		202,160		376,390		166,938		177,301		182,427		183,635		710,301
Auto Parts Business
Number of self-service locations at end of quarter		35		35				35		35		35		35
Number of full-service sites at end of quarter		18		18				17		17		17		17
(1) Price information is shown after a reduction for the cost of freight incurred to deliver the product to the customer.

SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per share amounts)
		February 29, 2008		August 31, 2007
Assets
Current assets:
Cash and cash equivalents	$	37,516	$	13,410
Accounts receivable, net		154,271		170,212
Inventories		285,264		258,568
Other current assets		26,760		19,286
Total current assets		503,811		461,476
Property, plant and equipment, net		403,869		383,910
Goodwill and other assets		331,686		306,028
Total assets	$	1,239,366	$	1,151,414
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term borrowings	$	478	$	20,275
Other current liabilities		167,107		171,914
Total current liabilities		167,585		192,189
Long-term debt		189,132		124,079
Other long-term liabilities		73,215		64,709
Minority interests		3,340		5,373
Shareholders’ equity		806,094		765,064
Total liabilities and shareholders’ equity	$	1,239,366	$	1,151,414

CONTACT:
Schnitzer Steel Industries, Inc.
Rob Stone, 503-224-9900 (Investor Relations)
Tom Zelenka, 503-323-2821 (Press Relations)
www.schnitzersteel.com
ir@schn.com