July 10, 2013
CMC's Profits Down Through Three Quarters
Commercial Metals Co., Irving, Texas, reported net earnings of $19.0 million in its third fiscal quarter, down more than 50 percent from the same period in 2012. The steel producer and recycler reported net sales of $1.8 billion in the quarter, 10 percent below sales from last year’s third quarter.
The company’s net earnings for the first three quarters totaled $73.3 million, well behind the $177.3 million reported during the same period in 2012. Net sales declined 11.7 percent to $5.3 billion.
"We experienced improvements over the second quarter of fiscal 2013 in all of our business segments except our Americas Mills segment. Sequentially, shipments were up across the board consistent with seasonal trends," said Joe Alvarado, president and CEO during his company’s quarterly conference call with analysts and investors. "However, on a year-over-year basis, a modest improvement in rebar shipments was more than offset by weaker shipment levels of merchant and light structural products, contributing to lower levels of profitability in our Americas Mills segment."
The company's fabrication segment recorded its best adjusted operating profit since the fourth quarter of fiscal 2009. The operating improvement was mostly due to expanding margins on the heels of declining raw material input prices, company officials said. Shipments declined 7 percent compared to the third quarter of fiscal 2012.
Looking forward, the company expects its fourth-quarter results to be similar to the third-quarter numbers. "Non-residential construction in the U.S. is showing some regional improvement, but still lacks signs of a broad-based recovery," Alvarado said.