Commercial Metals Co. (CMC) earnings fell in its fiscal first
quarter due in part to a weaker performance by its Americas
Fabrication segment, offset by strong gains by its mill
Texas-based steelmaker and metals recycler posted net income of
$45.92 million for the three months ended Nov. 30, down 7.6
percent from $49.72 million in the same period a year earlier,
on sales that fell 3.8 percent to $1.68 billion.
"We anticipate our
fiscal second quarter to be seasonally slower as a result of
holiday slowdowns and winter weather conditions, which reduce
construction activities," chairman, president and chief
executive officer Joseph Alvarado said in a statement.
"However, many of the economic indicators we highlighted in our
prior earnings release for the fiscal fourth quarter of 2013
Fabrication segment recorded operating earnings of nearly $2.22
million in the latest quarter on shipments of 267,000 tons,
down 78.2 percent from $10.19 million on shipments of 260,000
tons a year earlier due to an unfavorable change in pretax
last-in, first-out (Lifo) inventories.
Americas Mills segment posted $65.81 million in operating
earnings for the quarter, up 27.4 percent from $51.66 million
in the same period a year earlier, while its International Mill
segments operating earnings jumped to $15.27 million from
Alvarado said the
company will take advantage of expected slower business
activity in its fiscal second quarter to take planned outages
for maintenance and upgrade equipment, similar to previous
years, but he did not provide specifics.