Commercial Metals announces first quarter earnings

Commercial Metals announces first quarter earnings

Commercial Metals Company, (CMC) a steel manufacturer and recycler located in Texas announced its first quarter 2005 net earnings declined five percent from the same period in 2004 due to challenging market conditions. Net sales for the first quarter were reported to be $1.6 billion, marking a slight year-on-year increase from $1.5 billion. First quarter net earnings were $69.6 million, or $1.14 per diluted share, compared to $73.7 million, or $1.21 per diluted share, for the same year-ago period. CMC chairman, president and CEO Stanley A. Rabin said, "Overall market conditions remained favorable, but more challenging than one year ago. Nonetheless, with our diverse but related businesses, we achieved again outstanding results across four of our five segments. Steel and nonferrous prices were relatively high and shipments especially robust in the United States. All signs point to relatively low inventories at end users and distributors. On the other hand, steel prices weakened in Asia and Europe. Meanwhile, input costs remained high resulting in a higher than expected LIFO expense. The U.S. Dollar strengthened moderately, putting some general pressure on Dollar denominated selling prices." Commercial Metals Company and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel mini-mills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic overseas markets.