In fiscal 2014, you will recall that we announced a $40 million productivity and cost-savings initiative, which was primarily focused on MRB and was scheduled to be achieved by the end of fiscal 2015. We have delivered on our target ahead of schedule. As you can see on the graph, we maintained a quarterly run rate of $10 million in benefits in the first quarter of 2015. Last quarter, we announced a productivity initiative in our auto parts business that was targeted to achieve annual savings of $7 million. Today, we are announcing an increase to this target of an additional $7 million, for a total annual benefit of $14 million. The completion of these initiatives is expected to yield higher earnings and increased efficiencies by centralizing and streamlining field support activities, reducing organizational layers, and achieving cost reductions.
The initiatives announced today are expected to reduce annual SG&A costs by $7 million. We anticipate a workforce reduction of approximately 4 percent of APB’s headcount and a restructuring charge of approximately $2 million. We expect to realize 50 percent of the annualized $14 million of savings by the end of fiscal 2015 and full realization of annualized savings during fiscal 2016. So now let me turn it over to Richard for an update on our operating segment performance and our capital structure.
Richard Peach, CFO, SVP
Thank you, Tamara. I will begin with a review of MRB’s performance on Slide 9. Ferrous sales volumes of 938,000 tons were slightly down year-over-year and 14 percent less than the fourth quarter of fiscal 2014. The sequential decrease was driven by the weaker export demand and the impact of the lower price environment on scrap supply. Compared to last year, exports were down by 8 percent, with total sales volumes only down by 4 percent due to a higher proportion of domestic sales.
Although the high to low on ferrous selling prices fell by $80, the average net selling price in the first quarter of $328 per ton was only down by $23 per ton sequentially. Our ferrous revenues are recognized on a shipped basis, so our first quarter average net selling price includes the beneficial impacts of selling some cargos at the higher prices which we saw in August and September. Generally, we are making sales for shipment four to six weeks after the order date.
Non-ferrous sales volumes of 127 million pounds were up 3 percent from the prior year quarter, but down by 18 percent sequentially mainly due to the adverse impact on production of lower ferrous volumes. The average net selling price for non-ferrous was in line sequentially but down by 4 percent year-over-year consistent with the general drop in commodity markets.
