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Commercial Metals Posts Upbeat Q2 Earnings, But Misses Revenue Estimates

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Commercial Metals Company (NYSE: CMC) reported stronger-than-expected earnings for its second quarter, but the company's revenue missed analysts' expectations.

Net earnings attributable to CMC jumped to $54.5 million, or $0.46 per share in the second quarter, compared to $11.1 million, or $0.09 per share, in the year-ago period. Earnings from continuing operations jumped to $0.52 per share from $0.11 per share.

Its net sales slipped to $1.4 billion from $1.6 billion. However, analysts were expecting earnings of $0.20 per share on revenue of $1.63 billion.

Adjusted operating profit from continuing operations jumped to $112.2 million from $37.0 million, while adjusted EBITDA from continuing operations climbed to $145.1 million from $69.3 million.

Americas Recycling segment posted adjusted operating loss of $0.2 million in the latest quarter, versus adjusted operating loss of $0.9 million in the year-ago quarter. Americas Mills segment reported adjusted operating profit of $98.5 million, versus adjusted operating profit of $44.1 million.

Americas Fabrication segment posted adjusted operating profit of $11.8 million, compared with adjusted operating loss of $5.3 million. International Mill segment posted adjusted operating profit of $0.8 million versus adjusted operating profit of $8.3 million.

International Marketing and Distribution segment posted adjusted operating profit of $15.7 million, versus adjusted operating profit of $4.5 million.

At February 28, 2015, the company had cash and cash equivalents of $313.0 million and around$1.0 billion in total liquidity.

Joe Alvarado, Chairman of the Board, President, and CEO, commented, "Second quarter financial results represented one of our best second fiscal quarters on record in the Company's history. Our domestic mills benefited from lower raw material prices as metal margins expanded significantly when compared to one year ago. We experienced normal seasonal effects with holidays and weather affecting a number of our locations' ability to ship as well as some higher operating cost mainly associated with higher energy cost and curtailments. Conversely, in Poland competitive pressures forced margin compression despite reasonably good market conditions for construction markets in Poland."

Commercial Metals shares fell 0.07% to $15.10 in pre-market trading.

 

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