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Commercial Metals Issues Third Quarter Guidance

05/19/2010 - Commercial Metals is estimating that third-quarter results will range from breakeven to a $0.10 per share loss, up from a loss of $1.53 per share in the previous quarter.

Commercial Metals Co. is estimating that results will range from breakeven to a $0.10 per share loss for its third quarter ending May 31, 2010. The estimate compares to a loss of $1.53 per share in the previous quarter (Q2) and a loss of $0.12 per share in the year-ago third quarter.
 
"As anticipated, we have seen a seasonal pickup in the nonresidential construction markets, in particular, the public sector,” said CMC Chairman, President and CEO Murray R. McClean. “Throughout the quarter there has been a growing confidence in the markets as volumes increased, albeit from a very weak second quarter.
 
“Finished goods pricing, after significant increases, is exhibiting stability at quarter end, a welcomed relief to our customer base,” continued McClean. “We anticipate the Americas Recycling and Americas Mills segments as well as the International Marketing and Distribution segment to be profitable. The Americas Fabrication segment is still working through its lower-priced backlog.
 
“Our International Mills, though benefiting from higher metal margins, will absorb start-up expenses in our new flexible rolling mill in Poland and the new meltshop in Croatia, which we anticipate may result in a loss for this segment," concluded McClean.
 
CMC said it would withhold further comment on quarterly results until Tuesday, June 22, when it issues its comprehensive third quarter release.
 
Commercial Metals 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, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.