Commercial Metals Company Friday announced an estimated net loss between $170 million to $180 million or $1.50 to $1.60 per share for the quarter ended February 28, 2010. The estimated net loss from continuing operations of $130 million to $140 million includes accruals for severance, lower of cost or market inventory valuation adjustments, job loss reserves, and LIFO expense estimated to be approximately $60 million total net after tax for the quarter.
As reported in late February, CMC decided to exit the joist and deck business. Second quarter operating results for joist and deck including impairment, severance, and other costs net of estimated asset realization values associated with the sale or closure of these facilities are estimated to be approximately $40 million net after tax.
"Our second fiscal quarter ending February 28 which encompasses the winter months is always our weakest quarter," said Murray R. McClean, CMC Chairman, President and CEO. "This second quarter has been particularly difficult due to a combination of continued weak end-use demand in the nonresidential construction markets, unusually harsh winter conditions in the U.S. and Europe, and rapidly rising ferrous scrap prices which have outpaced finished goods prices. Each of our segments will report operating losses for the second quarter with the exception of International Marketing and Distribution."