CMC reports strong fiscal Q4 earnings

Thursday, 14 October 2021 20:09:06 (GMT+3)   |   San Diego

Commercial Metals Company (CMC) today announced financial results for its fiscal fourth quarter ended August 31, 2021. Earnings from continuing operations were $152.3 million on net sales of $2.0 billion, compared to prior year earnings from continuing operations of $67.8 million on net sales of $1.4 billion. For the full year, earnings from continuing operations were $412.9 million, compared to $278.3 million, in the prior year.

The North America segment generated record adjusted EBITDA of $212.0 million for the fourth quarter of fiscal 2021, an increase of 22 percent compared to $174.2 million in the prior year period.  In a press release, CMC said this improvement was driven by increased margins across multiple products lines, coupled with higher shipments of steel products and raw materials.  These positive factors were partially offset by a year-over-year increase in controllable costs per ton of finished steel shipped, due largely to inflationary pressures for freight and steelmaking consumables, the company said.

Shipment volumes of finished steel, which include steel products and downstream products, increased by 2 percent from the prior year fourth quarter.  CMC said demand for rebar from the mills remained relatively steady, but shipments declined modestly from the prior year due to a shift in mix toward merchant bar and wire rod. Shipments of merchant and other products increased by 29 percent from the prior year, driven by the broad reopening of the US economy, the company said.

As for an outlook, Barbara R. Smith, CMC’s Chairman of the Board, President and CEO, commented, "Based on our current view of the marketplace, we anticipate our strong operating and financial performance will continue in fiscal 2022. Volumes should remain solid, supported by a replenished construction backlog in North America, as well as broad strength across key end markets in both North America and Europe. In the first quarter of fiscal 2022, we expect finished steel volumes to follow typical seasonal patterns, which have historically declined modestly from our fourth quarter levels. We expect first quarter margins to remain consistent with the historical high levels earned in the fourth quarter."

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