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Steel News January 07, 2020 08:30:44 AM

Commercial Metals Company Posted Robust First Quarter Fiscal 2020 Results

Paul Ploumis
ScrapMonster Author
The company had ceased melting operations at its Rancho Cucamonga, CA facility, which in turn has resulted in a net after tax charge of $5.0 million.
Commercial Metals Company Posted Robust First Quarter Fiscal 2020 Results

SEATTLE (Scrap Monster): Irving, Texas-headquartered Commercial Metals Company (CMC) reported first quarter fiscal 2020 results. The company posted improved financial performance, mainly aided by strategic repositioning of its operations.

The company reported earnings from continuing operations of $82.8 million or $0.69 per diluted share during the fiscal first quarter ended November 30, 2019. This compares with net earnings of $19.4 million or $0.16 per diluted share during same quarter the previous fiscal. The quarterly net sales surged higher by 8% year-on-year, from $1.3 billion to $1.4 billion, said the company press release.

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The company had ceased melting operations at its Rancho Cucamonga, CA facility, which in turn has resulted in a net after tax charge of $5.0 million. Excluding this, CMC reported adjusted earnings from continuing operations of $87.8 million or $0.73 per diluted share. This represents a dramatic increase by 109% year-on-year. The adjusted earnings from continuing operations had totalled only $0.35 per diluted share during the three-month period ended November 30, 2018.

Commenting on the significant boost in company’s earnings, Barbara R. Smith, president, CEO and board chair noted that the quarter marked the best financial performance from its strategically repositioned portfolio of operations. Furthermore, it has helped the company to delever its balance sheet substantially.