Help Desk -
9717405332, 9599714297, 9810335381
Email
Password

CMC reports Q1 result

Steel News - Published on Wed, 11 Jan 2017

Image Source: CMC
Commercial Metals Company announced financial results for its first quarter ended November 30, 2016. Earnings from continuing operations for the first quarter of fiscal 2017 were USD 7.2 million (USD 0.06 per diluted share) on net sales of USD 1.1 billion. This compares to earnings from continuing operations of USD 25.6 million (USD 0.22 per diluted share) on net sales of USD 1.2 billion for the first quarter of fiscal 2016. Net earnings attributable to CMC for the three months ended November 30, 2016 were USD 6.3 million (USD 0.05 per diluted share), compared with net earnings attributable to CMC of USD 25.1 million (USD 0.21 per diluted share) for the first quarter ended November 30, 2015. Results for the first quarter of fiscal 2017 were adversely impacted by the following, compared to the first quarter of fiscal 2016 (all after-tax):(i) a USD 2.7 million (USD 0.02 per diluted share) increase in stock-based compensation expense related to mark to market adjustments associated with the increase in the value of our common stock at November 30, 2016, (ii) a USD 1.6 million (USD 0.01 per diluted share) increase in severance cost and (iii) an approximate USD 1.4 million (USD 0.01 per diluted share) unfavorable impact from a net mark to market loss on open copper derivatives.

Adjusted operating profit from continuing operations was USD 23.4 million for the first quarter of fiscal 2017, compared with adjusted operating profit from continuing operations of USD 56.1 million for the first quarter of fiscal 2016. Adjusted EBITDA from continuing operations was USD 53.8 million for the first quarter of fiscal 2017, compared with adjusted EBITDA from continuing operations of USD 87.7 million for the first quarter of fiscal 2016.

The Company's liquidity position at November 30, 2016 remained strong with cash and cash equivalents of USD 465.2 million and availability under the Company's credit and accounts receivables sales facilities of USD 555.4 million. We regularly evaluate the uses of our cash to maximize total shareholder return, including debt repayment, capital deployment, share repurchases and dividends.

Mr Joe Alvarado chairman of the Board president and CEO commented that "We experienced margin compression in some of our market segments in the early part of our first quarter; however, rising raw material costs, low customer inventory levels and an increase in bidding activity in November suggest more optimistic outcomes for the balance of the year, allowing for the regular seasonal slowdown in the construction markets we experience in the second quarter. For the last two consecutive quarters of the Jacobson Survey, the customer satisfaction survey of 28 US bar mills, CMC's four mills have held the top four positions in overall customer satisfaction, a testament to our continued focus on customers. This customer focus as well as aggressive cost management position us well to take advantage of the hopefully better months ahead for the US steel industry. Our International Mill segment recorded an increase in adjusted operating profit due to increased volumes as the construction sector in Poland improved compared to the first quarter of fiscal 2016. Additionally, our Americas Recycling segment saw improved performance over the first quarter of fiscal 2016 through margin expansion and improved sales volumes."

Source :

Posted By : Rabi Wangkhem on Wed, 11 Jan 2017
Related News from Steel segment