Commercial Metals Company (CMC) today announced financial results for its third quarter ended May 31, 2017. Net earnings for the third quarter of fiscal 2017 were $39.3 million on net sales of $1.4 billion. This compares to net earnings of $19.3 million on net sales of $1.2 billion for the third quarter of fiscal 2016.
The Americas Recycling segment recorded adjusted operating profit of $9.3 million for the third quarter of fiscal 2017 compared to an adjusted operating loss of $2.0 million for the third quarter of fiscal 2016. The improvement in adjusted operating profit compared to the same period in fiscal 2016 was primarily the result of strong ferrous scrap shipments, improved metal margins, realized efficiency improvements lowering conversion costs and the addition of seven recycling facilities acquired at the beginning of the quarter in the southeastern US.
The Americas Mills segment recorded adjusted operating profit of $50.7 million for the third quarter of fiscal 2017 compared to adjusted operating profit of $55.0 million for the corresponding period in fiscal 2016. Shipment volumes in this segment were strong, but the company said in a statement that margins have been under significant pressure in 2017 due to continued elevated import levels.
The Americas Fabrication segment recorded adjusted operating profit of $1.8 million for the third quarter of fiscal 2017 compared to adjusted operating profit of $22.8 million for the third quarter of fiscal 2016. This result continues the trend realized over the past few quarters of competitive pressures keeping awarded contract prices low.
As for an outlook on the rest of fiscal 2017, Barbara Smith, President and Chief Operating Officer, commented: “We anticipate stability in the key macro economic drivers that impact our business for the remainder of our fiscal 2017, including continued strong demand in both the US and Polish markets and also historically low steel margins in the US.”