CMC Announces Guidance for First Quarter 2012 Earnings
12/20/2011 - Commercial Metals Co. expects to report earnings in the range of $0.87 to $0.97 per diluted share for its first quarter ended November 30, 2011, a substantial increase over the $0.01 earnings per share recorded for the first quarter of fiscal 2011.
Commercial Metals Co. announced that it expects to report earnings in the range of $0.87 to $0.97 per diluted share for its first quarter ended November 30, 2011.
The first quarter guidance represents a substantial increase over the $0.01 earnings per share recorded for the first quarter of fiscal 2011 and the $1.04 loss per share reported for the fourth quarter of fiscal 2011. Earnings per share from continuing operations are expected to be in the range of $1.01 to $1.11. The loss per share from discontinued operations is expected to be approximately $0.14.
The company noted that continuing operations are profitable and include a tax benefit of $102 million ($0.87 per share) related to ordinary stock and bad debt deductions from the investment in the company's Croatian subsidiary, while discontinued operations include a charge of approximately $18 million for severance costs related to closure of the Croatian pipe mill. The company had
CMC announced earlier this year (October 7, 2011) its decision to exit the Croatian pipe mill business by way of sale and/or closure. By the end of the first quarter of fiscal 2012, the facility had ceased production in the meltshop and rolling mill. Final shipments are to be made in the second quarter of fiscal 2012.
CMC will release its first quarter earnings on Friday, January 6, 2012.
Commercial Metals Co. and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.
