On Wednesday, Irving, Texas-based Commercial Metals Company reported net earnings of $28.9 million for its fiscal Q2 2012 (ended February 29, 2012), but sustained an operating loss of $10 million for its Americas Fabrication segment. Despite the loss, however, CMC said that the segment's backlog is at an all-time high in tons with steadily improving prices.
Meanwhile, CMC's Americas Recycling segment was profitable for the eighth straight quarter with an adjusted operating profit of $6.4 million. Falling scrap price in February made it difficult for the segment to improve on last year's Q2 profit of $10.9 million, CMC said in a press release. CMC's President and CEO Joe Alvarado commented that in fiscal Q3 2012, scrap prices are expected to remain relatively stable and Q3 is historically the best quarter as the construction season begins with the onset of milder weather.