Commercial Metals Co. (CMC) saw sales and shipments fall in its
fiscal third quarter compared with the same period last year,
particularly in its U.S. mill segment, but it remained
Texas-based company posted net income of $18.96 million for the
three months ended May 31, down 53.4 percent from $40.68
million a year earlier on sales that slid 10.6 percent to $1.79
performance was by CMCs U.S. mills segment, which saw a
19.9-percent decrease in quarterly operating earnings to $47.51
million from $59.28 million a year ago on net sales that fell
10.9 percent to $503.69 million from $565.13 million.
Mill rebar shipments
in the fiscal third quarter improved slightly from a year ago,
increasing 3.4 percent to 369,000 tons from 357,000 tons, but
merchant and other structural product shipments fell 19.8
percent to 271,000 tons from 338,000 tons. Margins on merchant
products were lower to due to import pressure, while rebar
margins improved compared with the same period last year.
improvements over the second quarter of fiscal 2013 in all of
our business segments except our Americas Mills segment," CMC
president and chief executive officer Joe Alvarado said in a
statement. "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."
CMC saw a stronger
performance by its U.S. fabrication segment due to improved
selling prices, with operating earnings soaring to $13.5
million from $199,000 a year ago on sales that inched up 1.2
percent to $383.8 million from $379.33 million despite a
7-percent fall in shipments to 277,000 tons from 298,000
"We are pleased with
the improved financial performance of our Americas Fabrication
segment recording its best adjusted operating profit since the
fourth quarter of fiscal 2009," Alvarado said. "Furthermore,
the Americas Fabrication segment has reported positive adjusted
operating profit for four of the last five quarters."
Alvarado said the
company expects similar results in its fiscal fourth quarter,
with nonresidential construction seeing some regional
improvement but nationwide recovery still lagging.