CMC records lower fiscal Q2 earnings as steel and recycling profits fall

Friday, 29 March 2013 01:09:56 (GMT+3)   |   San Diego

Irving, Texas-based Commercial Metals Company (CMC) announced Thursday that for its fiscal Q2 (ended February 28, 2013), net earnings were $4.6 million on net sales of $1.7 billion, down from earnings of $28.9 million on sales of $2 billion in the same period a year ago.

CMC's Americas Recycling segment recorded an adjusted operating profit of $2.2 million for Q2 of the fiscal year, compared with an adjusted operating profit of $6.4 million in the prior year's second quarter. Ferrous selling prices declined 7 percent to $336 per ton when compared to Q2 of fiscal 2012.

Meanwhile, the Americas Mills segment recorded an adjusted operating profit of $48.8 million for this year's Q2, compared with an adjusted operating profit of $54.4 million in the prior year's Q2. Shipping volumes declined for merchant and billet products, while rebar shipments continued to strengthen when compared to the prior year. In addition, CMC experienced lower margins on merchant products during the quarter due to import pressure, although rebar margins improved as compared to the prior year's Q2.

The Americas Fabrication segment recorded an adjusted operating loss of $3.8 million for Q2 2013, compared with an adjusted operating loss of $10 million for the prior year's Q2. The International Mill segment recorded an adjusted operating loss of $4.2 million for the second quarter of this year, compared with an adjusted operating profit of $6.6 million in the prior year's second quarter. Finally, CMC's International Marketing and Distribution segment recorded an adjusted operating profit of $3.9 million for this year's Q2, compared with an adjusted operating profit of $26.6 million in the prior year's Q2.

Net earnings attributable to CMC for the six months ended February 28, 2013 were $54.3 million on net sales of $3.5 billion, compared with net earnings attributable to CMC of $136.6 million on net sales of $3.9 billion for the six months ended February 29, 2012.


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