US-based rebar producer Commercial Metals Company (CMC) has announced financial results for its fiscal first quarter ended November 30, 2024. The company has posted a net loss at $175.7 million, compared to net earnings of $176.3 million in the same period of last year, while its net sales were at $1.9 billion, compared to $2.0 billion in the first quarter of the previous year.
Peter Matt, president and CEO of CMC, said, “Financial results continued to be hindered by economic uncertainty that has weighed on new construction activity, pressuring steel pricing and margins. We remain confident that this weaker demand environment will be temporary as we expect the underlying drivers across infrastructure, non-residential and residential end markets will provide multiyear support for our business. Our downstream bid levels and several key external indicators continue to evidence a robust pipeline of potential future projects that should translate into construction activity in the coming quarters."
As for an outlook, the company said it expects consolidated financial results in the second quarter of fiscal 2025 to decline from the first quarter level. Mr. Matt continued, "We are very encouraged by our recent conversations with customers and the optimism they have voiced about the coming quarters. Key indicators of the construction pipeline also point in a positive direction. Outside of construction, measures of both big and small business confidence have improved significantly over the last two months. The palpable shift in sentiment gives us confidence that current softness is transient and that we should soon enter a period of renewed strength in our core markets."