Steel Mills
CMC Reports 8th Consecutive Quarter of Positive Earnings
Written by Sandy Williams
October 24, 2013
Commercial Metals Company reported earnings of $4.1 million on net sales of $1.7 billion for its FY 2013 fourth quarter (ending August 31, 2013). Net earnings included an asset impairment charge of $25.9 million related to its Australian operation. In comparison, CMC reported net earnings of $30.2 million in fourth quarter 2012.
CMC net earnings for the full fiscal year were $77.3 million on net sales of $6.9 billion, compared to net earnings of $207.5 million on sales of $7.7 billion in FY 2012.
The Americas Mills segment shipped 653,000 tons of long products for net sales of $465 million resulting in adjusted operating profit for the fourth quarter of $58.4 million compared to $63 million in fourth quarter 2012. Segment volumes dropped by 7 percent and metal margins declined by 2 percent. Higher shipments, however, improved operating profit by 26 percent over the previous quarter.
Americas Fabrication shipped 276,000 tons for net sales of $384 million. Operating profit jumped to $8.2 million in fourth quarter 2013 from $1.5 million in 2012 mostly due to lower input prices and higher selling prices. Order book also improved over 2012 resulting in a better backlog to enter fiscal year 2014.
Americas Recycling shipped 588,000 tons for net sales of $346 million. The Recycling segment suffered a $6.7 million adjusted operating loss compared to a profit of $8.3 million in 2012. Nonferrous volumes and pricing dropped in fourth quarter offsetting higher volumes, selling prices and margins for ferrous scrap. The segment also took a $2 million operating loss on a long-term supply contract with a customer.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Trump still against selling USS to Japanese firm: Report
Despite ordering a new review of Nippon Steel’s bid for U.S. Steel, President Trump said he is still against selling USS to a Japanese company, according to media reports.
Algoma looks to sell more steel in Canada in wake of Trump’s tariffs
The Canadian steelmaker said its absorbing higher tariffs as it moves forward.
Ancora abandons plan to take over leadership of USS
Investment firm Ancora Holdings Group has halted its play for U.S. Steel's board, citing Nippon Steel’s proposed bid for USS “gaining momentum.”
Ancora says plan for USS would yield higher value than Nippon deal
Ancora’s intention to replace U.S. Steel's leadership was first announced in late January.
Trump orders new CFIUS review for USS
President Trump has ordered a new review of Nippon Steel’s proposed buy of U.S. Steel, to be completed within 45 days.