Commercial Metals Company
) reported earnings of 42 cents per share for first-quarter
fiscal 2013 (ended November 30, 2012), down from 93 cents per
share recorded a year ago. Its profit fell roughly 54% year over
year to $49.7 million. Lower demand hurt the Texas-based steel
and metals maker's bottom line.
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Excluding a one-time gain associated with the sale of its 11%
stake in a Czech Republic joint-stock company, Commercial Metals
earned 28 cents a share in the quarter, topping the Zacks
Consensus Estimate of 17 cents.
Revenues fell nearly 10% year over year to $1,789 million,
missing the Zacks Consensus Estimate of $1,875 million. Adjusted
operating profit more than quadrupled to $90.6 million.
Revenues from the company's Americas Recycling segment slipped
15% to roughly $352 million as lower mill operating rates and
uncertain economic environment affected demand in the quarter.
The Americas Mills segment posted sales of $496.4 million, down
roughly 6% year over year. Revenues from the Americas Fabrication
unit rose roughly 12% to $356.6 million, aided by stable material
However, a weak European market contributed to a 25% decline in
revenues from the International Mill division to $222 million.
International Marketing and Distribution segment's sales fell 14%
to $608.6 million. Uncertainty across key global markets
continues to affect the division.
Commercial Metals ended the first quarter with cash and cash
equivalents of $271.4 million, up 19% year over year. Total
long-term debt was $1,158 million, essentially flat year over
Moving ahead, the company expects the fledgling recovery in
domestic construction end markets to support results in the
future reporting periods. It expects the Americas Recycling
segment to benefit from better scrap pricing in the second
quarter. However, the company envisions continued weakness in the
International Marketing and Distribution segment while the
challenging environment in the euro zone is expected to continue
to affect its International Mill unit.
Commercial Metals currently holds a Zacks #4 Rank, which
translates into a short-term Sell rating.
), which also belongs to the steel and iron industry, also
retains a Zacks #4 Rank (Sell).