CMC reports higher net earnings for fiscal Q3

Thursday, 21 June 2018 19:55:12 (GMT+3)   |   San Diego
       

Commercial Metals Company today announced financial results for its third fiscal quarter ended May 31, 2018. Earnings from continuing operations were $42.3 million for the third quarter of 2018, on net sales of $1.2 billion. Adjusted earnings from continuing operations were $49.0 million, compared to earnings from continuing operations and adjusted earnings from continuing operations of $31.6 million on net sales of $1.0 billion for the third quarter of 2017.

The company’s Americas Recycling segment recorded adjusted operating profit of $14.4 million for the third quarter of 2018, compared to an adjusted operating profit of $9.2 million for the third quarter of 2017. This was the highest level of profitability in this segment since the third quarter of fiscal 2011. In a press release, the company said the improvement in adjusted operating profit compared to the same period in the prior year was primarily the result of strong volumes and rising prices in both ferrous and nonferrous markets.  Ferrous and nonferrous prices have increased approximately 19 percent and 12 percent, respectively, from the same period of the prior year.

The company’s Americas Mills segment recorded adjusted operating profit of $70.4 million for the third quarter of 2018 compared to adjusted operating profit of $50.7 million for the corresponding period in fiscal 2017. CMC said it had a very strong shipping quarter as construction activity remains robust while import levels retreated in comparison to prior years.  Shipments increased 12 percent and metal margins increased by $29 per ton from the same period of the prior year. 

The Americas Fabrication segment recorded an adjusted operating loss of $16.1 million for the third quarter of 2018 compared to adjusted operating profit of $1.8 million for the third quarter of fiscal 2017.  CMC said that due to the integrated nature of its business and internal market-based transfer prices, as rebar prices have risen over the past six months, the Americas Mill segment has experienced margin expansion on rebar shipped internally to its rebar fabrication shops, while the Americas Fabrication segment has incurred margin compression as it services its mostly fixed price backlog of contract work.  However, CMC said rebar fabrication bidding activity remains strong. 


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