Following is the transcript of the Commercial Metals Company (NYSE:CMC) first quarter fiscal 2015 earnings call made on Tuesday, January 6, 2015, 11 AM ET. The company announced the financial results for the first quarter ended November 30, 2014.
Commercial Metals Company (NYSE:CMC)is a Fortune 500 steel and metal manufacturer based in the United States, but has strategic international market presence. It was founded in 1915 with a single recycling operation. Today, it has grown to be a global entity operating four primary business segments throughout 200 locations in more than 20 countries, recycling, mills, fabrication, and distribution.
Joseph Alvarado – Chairman of the Board, President, and Chief Executive Officer (CEO), Commercial Metals Company
Barbara Smith – Chief Financial Officer and Senior Vice President (SVP), Commercial Metals Company
Luke Folta – Jefferies Group LLC
Evan Kurtz – Morgan Stanley
Sal Tharani – Goldman Sachs
Nathan Littlewood – Credit Suisse Group
Brian Yu – Citigroup
Philip Gibbs – KeyBanc Capital Markets, Inc.
Aldo Mazzaferro –Macquarie Securities Group
Andrew Lane – Morningstar
Charles Bradford – Bradford Research, Inc.
Hello, and welcome everyone to today’s Commercial Metals Company First Quarter Fiscal 2015 Earnings Call. Today’s call is being recorded. After the company’s remarks, you will have a question-and-answer session and we will have a few instructions at that time.
I would like to remind all participants that during the course of this conference call, the company will make statements that provide information other than historical information and will include expectations regarding the company’s future operations and capital spending. These statements are considered forward looking and may involve speculation, and are subject to risk and uncertainties that could cause the actual results to differ materially from these expectations.
These statements reflect the company’s beliefs based on current conditions, but are subject to certain risk and uncertainties, including those that are described in the company’s latest 10-K. Although these statements are based on management’s current expectations and assumptions, CMC offers no assurance that events or facts will happen as expected.
All statements are made only as of this date. Except as required by law, CMC does not assume any obligation to update them in connection with future events, new information, or otherwise. Some numbers presented will be non-GAAP financial measures, and reconciliations can be found in the company’s earnings release or the company’s website.
And now for opening remarks and introductions, I will turn the call over to the Chairman of the Board, President and Chief Executive Officer of Commercial Metals Company, Mr. Joe Alvarado.
Joseph Alvarado, Chairman of the Board, President, and CEO, Commercial Metals Company
Thank you. Good morning, everyone and Happy New Year. Thank you for joining us to review CMC’s results for the first quarter of fiscal 2015. I willfirst cover highlights from the first quarter. Barbara will then provide further financial details, and I will conclude our prepared remarks with comments on our outlook for the second quarter of fiscal 2015. After which, we will open the call to questions.
As described in our earnings release this morning, we reported net sales of $1.7 billion for the first quarter of fiscal 2015, which was 4% higher than our net sales for the first quarter of fiscal 2014 of $1.6 billion. Earnings from continuing operations for our first quarter of fiscal 2015 was $38.3 million or $0.32 per diluted share, an increase of $0.03 per diluted share when compared to the same quarter in the prior fiscal year. Also noted in our earnings release this morning is that the Board of Directors declared a dividend of $0.12 per share for stockholders record on January 20, 2015. The dividend will be paid on February 3, 2015.