Commercial Metals Shares Rise on Earnings Growth
January 03 2018 - 9:38AM
Dow Jones News
By Allison Prang
Shares of Commercial Metals Co. (CMC) rose 5.4% premarket
Wednesday after the company reported first-quarter earnings that
were nearly six times higher than the same period a year prior.
The steel-and-metals company reported earnings a day after it
announced a $600 million cash deal to buy Brazilian rival Gerdau
SA's steel-reinforcing-bar assets in the U.S. The deal includes 33
rebar fabrication facilities and four mini-mills, the company
said.
Commercial Metals reported a profit of $36.8 million, or 31
cents a share, up from $6.3 million, or 5 cents a share, in the
year-ago period. The company reported an adjusted operating profit
on continued operations of $57.1 million, compared with $20.6
million a year earlier.
The company's Americas mills and recycling businesses both
reported increases in adjusted operating profits, while its
international mills segment said it more than doubled its adjusted
operating profit from a year ago.
The fabrication segment posted an operating loss in the latest
quarter as rebar prices rose. Commercial Metals said competition
and import-material prices have not allowed the company to pass on
higher costs to customers. Bidding activity, however, is strong,
the company said.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
January 03, 2018 09:23 ET (14:23 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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