CMC stock is trading higher in pre-market trading on January 6, 2020, after the company reported an earnings beat.
Commercial Metals Company (NYSE: CMC) today announced financial results for its fiscal first quarter ended November 30, 2019. Commercial Metals reports Q1 EPS of 69c versus the consensus estimate of 54c. The company reports Q1 revenue of $1.4B versus the consensus estimate of $1.43B.
Barbara Smith, Chairman, President and CEO, commented, “The first quarter marked the best financial performance from our strategically repositioned portfolio of operations. This milestone reflects the continued health of the U.S. non-residential construction sector, which contributed to strong performances in our Americas Mills and Fabrication segments. We believe the metal margin performance seen over recent quarters highlights the stability of CMC’s rebar and long product offerings compared to the broader steel market. Strong earnings and working capital management during the quarter allowed us to further de-lever our balance sheet. Over the past 12 months, we have made debt repayments of $173.8M.”
“We expect construction and infrastructure demand to remain resilient,” said CEO Barbara Smith. “Customer sentiment and our own fabrication backlog both point to a strong outlook for activity, though our second quarter will be impacted by typical seasonality related to holidays and winter weather conditions affecting construction activity. We anticipate metal margin will remain above the historical cycle average, but will experience a decline from first quarter levels. We expect our progress in optimizing our expanded domestic mill network during the first quarter will yield benefits going forward. We anticipate Fabrication will remain profitable, while Recycling should see some benefit from the recent rebound in ferrous scrap prices. We expect challenges to remain for our Polish operations until the current overhang of imports to the European Union unwinds.”