Commercial Metals Company today announced financial results for its fiscal second quarter ended February 29, 2020. Second quarter earnings from continuing operations were $63.6 million on net sales of $1.3 billion, compared to prior year period earnings from continuing operations of $14.9 million on net sales of $1.4 billion. Gross margin increased by 45 percent year-over-year, while total shipment volumes grew 2 percent over the same period.
The Americas Recycling segment recorded adjusted EBITDA of $5.8 million for the second quarter of fiscal 2020, a decrease of 43 percent compared to adjusted EBITDA of $10.1 million for the prior year quarter. The reduction reflected a combination of lower average ferrous selling prices and shipping volumes compared to a year ago, down 15 percent and 9 percent respectively.
The Americas Mills segment recorded adjusted EBITDA of $125.7 million for the second quarter of fiscal 2020, an increase of 12 percent compared to adjusted EBITDA of $112.4 million for the second quarter of fiscal 2019. Volumes increased 5 percent compared to the prior year period, driven by strength in the company’s construction end markets, as well as targeted merchant bar growth opportunities.
The Americas Fabrication segment recorded adjusted EBITDA of $16.1 million for the second quarter of fiscal 2020, marking a significant improvement from an adjusted EBITDA loss of $49.6 million for the second quarter of fiscal 2019, primarily due to expanded selling price margins over rebar cost.
The International Mill segment in Poland recorded adjusted EBITDA of $13.5 million for the second quarter of fiscal 2020, compared to adjusted EBITDA of $20.5 million for the prior year quarter.
Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, commented, "We enter the summer construction season with a good fabrication backlog, solid bidding activity, and mill metal margins above past cyclical averages. However, given economic uncertainties caused by the COVID-19 outbreak, as well as potential courses of action that local, state, and federal government bodies may take, we are unable to provide forward guidance at this time. In this unpredictable environment, we remain focused on factors we can control, and are positioning our company for long-term value generation."