CMC Americas Steel Mill Segment Earnings Reported Drastic Surge

SEATTLE (Scrap Monster): Irving, Texas-headquartered Commercial Metals Company (CMC) announced financial results for its fiscal Q2 ended February 28, 2019. The company’s earnings were mainly boosted by the integration of acquired rebar assets from Gerdau. CMC’s earnings from continuing operations stood at $0.13 per diluted share, as compared with $0.08 per diluted share during the same period a year before. The net sales reported considerable jump from $1.1 billion to $1.4 billion. The company’s revenue has increased by 33% over the previous year.

The decreasing ferrous and nonferrous scrap movement resulted in year-on-year decline of adjusted EBITDA of the Americas Recycling segment from $17.2 million to $10.1 million in the second quarter of fiscal 2019. On the contrary, the Americas Mill segment recorded 124% jump in adjusted EBITDA from $50.2 million to $112.4 million. The total mill shipment volumes declined during the quarter, primarily due to slower construction activity. The metal margins increased significantly by $91 per ton over the previous year. Meantime, the Americas Fabrication segment adjusted EBITDA loss widened from $8.6 million to $49.6 million. The segment was badly impacted by higher steel input costs.

CMC’s International Mill segment in Poland witnessed decline in adjusted EBITDA from $32.1 million in Q2 of fiscal 2018 to $20.5 million during the comparable quarter this fiscal. Also, the Corporate and Other Segment recorded adjusted EBITDA loss of $24.1 million.

Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer noted that the integration of Gerdau rebar assets will continue to provide anticipated benefits.