CMC Earnings Defy Weather and Seasonality

Commercial Metals Company reported net earnings of $14.9 million on net sales of $1.4 billion for the second quarter of its fiscal 2019 year ending Feb. 28, 2019. Revenue for the quarter increased 33 percent year-over-year due to favorable market conditions and strategic growth initiatives, including completion of the Gerdau S.A. acquisition in November. The asset added $383.6 million in revenue and $32.9 million in operating income to the second-quarter results.

CEO and President Barbra Smith said, “We are very encouraged by our progress of integrating the rebar assets we acquired from Gerdau last year. We continue to be highly confident they will provide the anticipated benefits and generate attractive returns for our stockholders. The quarter was impacted by typical seasonality and unprecedented rainfall levels in many of our markets, which impacted construction activity resulting in lower shipments in the quarter. I am pleased with the results of our ongoing operations and remain very optimistic about our growth in the second half of fiscal 2019.”