Commercial Metals Company
) reported earnings of 4 cents per share in second quarter fiscal
2013 (ended Feb 28), a decline from 25 cents per share recorded a
year ago. Earnings also missed the Zacks Consensus Estimate by 16
Profit slid roughly 84% year over year to $4.6 million.
Challenging conditions across the overseas market coupled with
seasonal softness hurt the Texas-based steel and metals maker in
the quarter. Moreover, profit in the year-ago quarter was aided
by higher tax benefit.
Revenues fell 12% year over year to around $1,730 million,
missing the Zacks Consensus Estimate of $1,848 million.
Commercial Metals saw lower sales across most of its business
segments in the quarter. Adjusted operating profit slipped
roughly 58% to $26.7 million.
Revenues from Commercial Metals' Americas Recycling segment
dipped 16% to roughly $351 million, hurt by lower ferrous selling
The Americas Mills segment posted sales of roughly $477 million,
down 9% year over year. Lower shipping volume of merchant and
billet products and a decline in merchant products margins
contributed to the fall. However, Commercial Metals witnessed
higher volume and margins for rebar in the quarter.
On a positive note, revenues from the Americas Fabrication unit
rose 5% to $318 million, aided by better pricing and shipping
Challenging conditions in Europe contributed to a 17% decline in
revenues from the International Mill division to $180 million.
International Marketing and Distribution segment's sales fell 10%
to $650 million. Weakness across key global markets continues to
affect the division.
Commercial Metals ended the second quarter with cash and cash
equivalents of $170 million, down 21% year over year. Total
long-term debt declined 1% year over year to $1,154 million.
Moving ahead, Commercial Metals expects ramp up in domestic
construction to support results in the third quarter. It
anticipates modest sequential improvement in results in the
International Mill unit on seasonal volume gains. However, the
company envisions continued weakness in the International
Marketing and Distribution segment given the soft end markets.
Commercial Metals currently carries a Zacks Rank #3 (Hold).
Other companies in the steel industry worth considering are
Gibraltar Industries Inc.
Shiloh Industries Inc.
Companhia Siderurgica Nacional
). While Gibraltar and Shiloh hold a Zacks Rank #1 (Strong Buy),
Companhia Siderurgica carries a Zacks Rank #2 (Buy).
COMMERCIAL METL (CMC): Free Stock Analysis
GIBRALTAR INDUS (ROCK): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
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