Commercial Metals Company
) raked in earnings of 16 cents per share in third-quarter fiscal
2013 (ended May 31), down from 35 cents per share recorded a year
ago. It also missed the Zacks Consensus Estimate by 3 cents.
Profit tumbled roughly 53% year over year to $19 million. Lower
shipments of merchant and light structural products hurt the
Texas-based steel and metals maker's Americas Mills segment and
thereby its bottom line.
Revenues fell 11% year over year to around $1,794 million,
falling well short of the Zacks Consensus Estimate of $1,914
million. Commercial Metals saw lower sales across most of its
business segments in the quarter. Adjusted operating profit
dipped roughly 21% to $55.8 million.
Revenues from Commercial Metals' Americas Recycling segment
slipped 17% to roughly $342 million, hurt by lower ferrous
The Americas Mills segment logged sales of roughly $504 million,
down 11% year over year. Lower shipping volume of merchant and
light structural products contributed to the fall. However,
Commercial Metals witnessed higher shipment volume for rebar in
On a positive note, revenues from the Americas Fabrication unit
edged up around 1% to $384 million.
Challenging conditions in Europe coupled with lower volumes of
merchant and wire rod products contributed to a 20% decline in
revenues from the International Mill division to $201 million.
Revenues from the International Marketing and Distribution
segment fell 13% to $594 million. Lower revenues in the raw
materials business and losses from the company's Australian
operations hurt the division's results.
Commercial Metals ended the third quarter with cash and cash
equivalents of $453 million, up 94% year over year. Total
long-term debt increased 22% year over year to $1,422 million.
Moving ahead, Commercial Metals expects results for the fourth
quarter to be in line with the third. The company added that
while domestic non-residential construction is showing some
improvement of late, it still lacks signs of a broad-based
Commercial Metals anticipates continued sequential improvement in
results in the International Mill unit on volume gains. However,
the company envisions the International Marketing and
Distribution segment to face continued challenges until sustained
improvements in the global markets takes hold. Moreover, recovery
in the European markets is expected to lag the rest of the
Commercial Metals currently carries a Zacks Rank #5 (Strong
COMMERCIAL METL (CMC): Free Stock Analysis
KOBE STEEL-ADR (KBSTY): Get Free Report
NIPPON STEEL CP (NSSMY): Get Free Report
SHILOH INDS INC (SHLO): Get Free Report
To read this article on Zacks.com click here.
Other steel producing companies worth considering are
Kobe Steel Ltd.
Shiloh Industries Inc.
Nippon Steel & Sumitomo Metal Corporation
). All of them hold a Zacks Rank #1 (Strong Buy).