Commercial Metals Company Reports Q3 Earnings
07/08/2015 - Commercial Metals Company announced financial results for its third quarter ended May 31, 2015.
Net earnings attributable to CMC for the three months ended May 31, 2015 were $56.7 million ($0.49 per diluted share) on net sales of $1.5 billion. This compares to net earnings attributable to CMC of $23.6 million ($0.20 per diluted share) on net sales of $1.7 billion for the third quarter ended May 31, 2014.
Earnings from continuing operations for the third quarter of fiscal 2015 were $67.1 million ($0.58 per diluted share), compared with earnings from continuing operations of $24.5 million ($0.21 per diluted share) for the third quarter of fiscal 2014.
Joe Alvarado, Chairman of the Board, President, and CEO, commented, "Fiscal third quarter adjusted EBITDA from continuing operations represents our highest adjusted EBITDA since the first quarter of fiscal 2009. Our domestic mills continued to benefit from expanding metal margins as a result of lower raw material prices when compared to one year ago. Although shipments from a number of our locations in the central and eastern regions of the U.S. were delayed as a result of record amounts of rainfall in Texas and the surrounding states in the latter part of our third quarter, we are confident in our expectation that U.S. construction activity will continue to improve during the summer months translating into strong activity levels within our domestic business."
Results for the three months ended May 31, 2015 included after-tax LIFO income from continuing operations of $24.1 million ($0.21 per diluted share), compared with after-tax LIFO income from continuing operations of $5.3 million ($0.04 per diluted share) for the third quarter of fiscal 2014. Adjusted operating profit from continuing operations was $126.0 million for the third quarter of fiscal 2015, our highest adjusted operating profit since the first quarter of fiscal 2009. This compares with adjusted operating profit from continuing operations of $58.1 million for the third quarter of fiscal 2014. Adjusted EBITDA from continuing operations was $158.5 million for the third quarter of fiscal 2015, compared with adjusted EBITDA from continuing operations of $90.4 million for the third quarter of fiscal 2014.
The Company's financial position at May 31, 2015 remained strong with cash and cash equivalents of $381.0 million and approximately $1.0 billion in total liquidity. Pursuant to our share repurchase program that was approved in October 2014, we purchased approximately 139 thousand shares of our common stock for $2.2 million during the third quarter of fiscal 2015.
On June 24, 2015, the board of directors of CMC declared a quarterly dividend of $0.12 per share for shareholders of record on July 9, 2015.
Alvarado concluded, "As we enter our fiscal fourth quarter, our key market indicators point toward a strong finish to our fiscal 2015. The demand for our finished steel products in the U.S. and Poland remains high. Additionally, unfavorable weather in May in the central region of the U.S. resulted in certain construction projects being pushed out into our fiscal fourth quarter, which we expect should provide some upside to the fourth quarter's results. Elevated levels of imports continue to pressure margins for our U.S. and Polish operations. Our International Marketing and Distribution segment also continues to be challenged by the strong U.S. dollar."
For the full press release and breakdown of earnings by business segment, continue to CMC's website.
Commercial Metals Company and its 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, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.
Earnings from continuing operations for the third quarter of fiscal 2015 were $67.1 million ($0.58 per diluted share), compared with earnings from continuing operations of $24.5 million ($0.21 per diluted share) for the third quarter of fiscal 2014.
Joe Alvarado, Chairman of the Board, President, and CEO, commented, "Fiscal third quarter adjusted EBITDA from continuing operations represents our highest adjusted EBITDA since the first quarter of fiscal 2009. Our domestic mills continued to benefit from expanding metal margins as a result of lower raw material prices when compared to one year ago. Although shipments from a number of our locations in the central and eastern regions of the U.S. were delayed as a result of record amounts of rainfall in Texas and the surrounding states in the latter part of our third quarter, we are confident in our expectation that U.S. construction activity will continue to improve during the summer months translating into strong activity levels within our domestic business."
Results for the three months ended May 31, 2015 included after-tax LIFO income from continuing operations of $24.1 million ($0.21 per diluted share), compared with after-tax LIFO income from continuing operations of $5.3 million ($0.04 per diluted share) for the third quarter of fiscal 2014. Adjusted operating profit from continuing operations was $126.0 million for the third quarter of fiscal 2015, our highest adjusted operating profit since the first quarter of fiscal 2009. This compares with adjusted operating profit from continuing operations of $58.1 million for the third quarter of fiscal 2014. Adjusted EBITDA from continuing operations was $158.5 million for the third quarter of fiscal 2015, compared with adjusted EBITDA from continuing operations of $90.4 million for the third quarter of fiscal 2014.
The Company's financial position at May 31, 2015 remained strong with cash and cash equivalents of $381.0 million and approximately $1.0 billion in total liquidity. Pursuant to our share repurchase program that was approved in October 2014, we purchased approximately 139 thousand shares of our common stock for $2.2 million during the third quarter of fiscal 2015.
On June 24, 2015, the board of directors of CMC declared a quarterly dividend of $0.12 per share for shareholders of record on July 9, 2015.
Alvarado concluded, "As we enter our fiscal fourth quarter, our key market indicators point toward a strong finish to our fiscal 2015. The demand for our finished steel products in the U.S. and Poland remains high. Additionally, unfavorable weather in May in the central region of the U.S. resulted in certain construction projects being pushed out into our fiscal fourth quarter, which we expect should provide some upside to the fourth quarter's results. Elevated levels of imports continue to pressure margins for our U.S. and Polish operations. Our International Marketing and Distribution segment also continues to be challenged by the strong U.S. dollar."
For the full press release and breakdown of earnings by business segment, continue to CMC's website.
Commercial Metals Company and its 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, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.
