CMC Earnings Improve over Previous Quarter

Commercial Metals Company (CMC) posted net earnings of $45.9 million on net sales of $1.7 billion for its first quarter of fiscal year 2014 ending on November 30, 2013. This compares with net earnings of $49.7 million on a similar net sale amount of $1.7 billion for the same period in FY 2013. Results included an after-tax gain of $15.5 million from the sale of Howell Metal Company and were negatively impacted by a 2.8 million after-tax LIFO expense. CMC adjusted profits were up significantly from the prior quarter with operating profit at $90 million compared to $37.1 million in Q4 FY 2013.

CMC’s Americas Recycling segment shipped 559,000 tons of scrap in the first quarter of 2014 as compared to 562,000 tons in the first quarter of 2013. Ferrous selling prices increased 1 percent to $326 per ton but were offset by a 7 percent decline in metal margins along with declines in nonferrous prices and margins on a year-over-year basis. On a quarter-to-quarter basis, selling prices and metal margins improved for both ferrous and non ferrous shipments. Adjusted operating profit was $0.8 million for Q1 FY 2014.