Radius Recycling, Inc. ( RDUS ) shares are trading lower after the company reported worse-than-expected third-quarter sales results.

Revenue stood at $674 million, missing the consensus of $693.9 million.

Ferrous sales volumes (LT, in thousands) decreased to 1,112 from 1,157 a year ago; adjusted EBITDA per ferrous ton sold ($/LT) was $8 compared to $48 in the prior year quarter. Average net ferrous sales prices ($/LT) fell to $350 from $413 last year.

Finished steel average net sales price ($/ST) came in at $817 (vs. 924 a year ago), and sales volumes (ST, in thousands) of 126 (vs. 142 in the comparable period).

Gross margin declined to $46 million from $96 million a year ago, and adjusted EBITDA decreased to $9 million, compared to $56 million a year ago.

Adjusted loss per share of $0.59, beating the consensus loss of $0.66.

In the third quarter, the company realized about three-quarters of the quarterly benefits from its previously announced $70 million annual cost reduction and productivity improvement plan.

In the quarter, the company had an operating cash outflow of $1 million, and debt stood at $411 million.

Tamara Lundgren, Chairman and Chief Executive Officer, said, “Although market conditions continued to remain challenging during the quarter, our operating performance reflected the benefits from delivering our cost reduction and productivity improvement programs and successfully increasing sales volumes for all of our products and services.”   

“We expect that as manufacturing activity improves and construction activity picks up, supply flows should expand. Independent of the timing of that recovery, we are continuing to see benefits from progress on our strategic initiatives which include investments in advanced nonferrous metal recovery technologies and expansion of our recycling services platform.”

Dividend: The board declared a cash dividend per share of $0.1875, payable on August 5, to shareholders of record as of July 22. 

Price Action: RDUS shares are trading lower by 13.2% at $13.27 at the last check Tuesday.