Commercial Metals reports record third quarter
Commercial Metals Company reported net earnings of $99.4 million or $0.82 per diluted share on net sales of $2.3 billion for the quarter ended May 31, 2007, ranking it as the strongest third quarter ever reported by the Company.
This compares with net earnings of $78.0 million or $0.62 per diluted share on net sales of $2.0 billion for the third quarter last year. This year's third quarter included after-tax LIFO expense of $20.1 million or $0.16 per diluted share. This compares with expense of $28.6 million or $0.23 per share in last year's third quarter. At quarter end, the LIFO reserve totaled $249 million.
Net earnings for the nine months ended May 31, 2007 were a record $250.7 million or $2.06 per diluted share on net sales of $6.3 billion. For the same period last year, net earnings were $227.7 million or $1.84 per diluted share on net sales of $5.3 billion. For the nine months ended May 31, 2007, after-tax LIFO expense was $39.0 million or $0.32 per share compared with an expense of $40.0 million or $0.33 per share last year.
Selling, general and administrative expenses in the third quarter included $13.7 million of costs associated with the investment in the global deployment of SAP software. Other costs of $17.2 million, mainly software acquisition, have been capitalized since inception of the project, of which $6.5 million has been capitalized in the current year.