Commercial Metals (CMC) Q2 Earnings Review

The history of Commercial Metals Co. (NYSE:CMC) dates back to 1915 when it commenced operations as a scrap trading company. From a single scrap yard, CMC grew into a Fortune 500 company. Today, it specializes in recycling, manufacturing, and supply of steel and metal products in the U.S. and several international markets.

The Irving, Texas-based steel and metal manufacturer recently announced better-than-expected financial results for the second quarter. CMC reported an adjusted profit of $79.8 million, or 66 cents per share for the three months ended February 28, up from $63.6 million, or 53 cents per share in the year-ago quarter. Analysts on average were expecting CMC to report an adjusted profit of 59 cents per share.

Revenue came in at $1.46 billion, as compared to $1.34 billion in the comparable period of 2020, and in line with the consensus forecast. The revenue was partly driven by improved shipment volume of finished steel, which rose 2 percent on a year-over-year basis.

Comparatively, shipments of merchant and other products saw a 13 percent surge in the quarterly amid increasing industrial activity and the construction of metal buildings. However, downstream product volumes fell 6 percent on a year-over-year basis.

CEO Barbara Smith expressed her satisfaction over the quarterly performance. She said in a statement, “I am extremely proud of our team’s continued hard work, which resulted in outstanding financial results highlighted by record second quarter Core EBITDA.  This was achieved amidst a challenging environment of rising scrap costs and weather-related disruptions, demonstrating both the value of CMC’s vertically integrated structure and the agility of our commercial, operational, and support teams.”

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