New Product Showcase
Place a Classified Ad
Request a Quote
Add a Link
Commercial Metals Company Reports All-Time Record Quarter
Irving, TX— Commercial Metals Company reported net earnings of $21.2 million or $0.71 per diluted share on net sales of $1.1 billion for the quarter ended February 29, 2004, ranking it as the strongest quarter ever reported for the Company. This compares with net earnings of $2.9 million or $0.10 per diluted share on net sales of $661 million for the second quarter last year. This year's second quarter included after-tax LIFO expense of $6.2 million or $0.21 per share compared to $1.9 million or $0.07 per share in last year's second quarter.
Net earnings for the six months ended February 29, 2004 were $33.8 million or $1.15 per diluted share on net sales of $1.9 billion. For the same period last year, net earnings were $5.1 million or $0.18 per diluted share on net sales of $1.3 billion. For the six months ended February 29, 2004, after-tax LIFO expense was $7.0 million or $0.24 per share compared to $1.8 million or $0.06 per share last year.
CMC chairman, president and chief executive officer Stanley A. Rabin said, "During December 2003, we consummated two important acquisitions, minimill operations in Poland and a rebar fabricator with operations in Texas and surrounding states. With these acquisitions' varying economic characteristics and internal management reporting changes, we have revised our financial reporting segments. We have maintained recycling and marketing and distribution while presenting the Polish entity separately. Our former manufacturing segment has been split between our five domestic mills and our downstream fabrication businesses."
Rabin said, "The primary story of the quarter was the unprecedented rise in the price of steel scrap accompanied by, albeit with a lag, a series of rapid price increases for our steel mill products. Not far behind was a surge in nonferrous prices. The result was an extraordinary jump in margins and profits for our recycling segment. At the same time, margins, volume and profits in our domestic mill segment were satisfactory because of robust demand. Conversely, margins in the fabrication segment were further compressed because of the rapid increase in input costs. Meanwhile, we further increased profitability in the marketing and distribution segment, and our acquisition in Poland got off to a very good start. Underlying the strong markets was continued robust demand in Asia (especially China), the upturn in the U.S. economy, the weak U.S. dollar, historically high freight rates and low end-user inventories. Manufacturing activity continued to pick up in many parts of the world. Construction markets were mixed, but perhaps modestly better than we expected at this point in the cycle."