Loading price data...
Scrap Monster
Olympus-ims.com
Vulcan
Spectro
Metal Recycling News January 09, 2018 01:30:14 PM

CMC’s Americas Recycling Segment Logs Best Quarterly Results Since 2012

Paul Ploumis
ScrapMonster Author
The adjusted operating profit from Americas Recycling Segment for the quarter totaled $9.9 million. This is when matched with an operating loss of $5.1 million during the comparable quarter last fiscal.
CMC’s Americas Recycling Segment Logs Best Quarterly Results Since 2012

SEATTLE (Scrap Monster): Irving, Texas-based Commercial Metals Co. (CMC) has announced operating results for the first quarter of fiscal 2018 ending Nov 30, 2017. The net earnings during the quarter surged higher significantly from $6.3 million in corresponding quarter a year before to $36.8 million. The net sales too increased from $1 billion to $1.2 billion over the previous year. The Americas recycling segment posted its best quarterly result since 2012.

The press release issued by Barbara Smith, President and CEO, CMC states that the higher earnings are mainly attributed to the continuing robust demand from the construction sector. The Polish operations recorded highest quarterly profits in more than a decade. Also, the Americas Recycling Segment delivered the best quarterly performance since 2012, mainly backed by increased demand for ferrous metals and rising non-ferrous scrap prices.

The adjusted operating profit from Americas Recycling Segment for the quarter totaled $9.9 million. This is when matched with an operating loss of $5.1 million during the comparable quarter last fiscal.

The Americas Mill Segment’s adjusted profit surged higher from $36.9 million to $40.8 million over the fiscal. The robust non-residential construction activity resulted in better shipment volumes. The metal margins remained more or less flat when compared with the corresponding quarter previous fiscal.

Meantime, the Americas Fabrication Segment slipped into an operating loss. The quarter reported adjusted operating loss of $4.8 million, as compared with an adjusted operating profit of $6.7 million a year before. The average selling price remained almost unchanged over the previous fiscal.

The International Mill Segment in Poland reported sharp jump in operating profit. The adjusted operating profit more than doubled from $10.0 million during Q1 fiscal 2017 to $23.4 million for the first quarter of fiscal 2018. Shipments from the operation surged higher by nearly 27%, on increased demand from construction sector. Margins too improved during the quarter.

Going forward, the recent acquisition of Gerdau’s US steel mill and fabrication assets is expected to contribute to the results during the second half of the fiscal. The new technology advanced EAF micro mill in Durant, Oklahoma is also expected to make big contribution to company’s operational excellence.