Irving Texas US headquartered steel maker Commercial Metals Company has announced Net earnings were USD 312.4 million for its fiscal third quarter ended 31 May 2022 on net sales of USD 2.5 billion as compared to prior year period net earnings of USD 130.4 million on net sales of USD 1.8 billion. Commercial Metals Company’s Chairman, President & Chief Executive Officer Ms Barbara R Smith said “The third quarter was another remarkable financial result for our Company, underpinned by strong operational execution and robust market conditions across our key geographies. I am extremely proud of CMC's financial achievements during the quarter, especially in Europe. CMC employees in Poland have opened their homes and communities in a heartfelt grassroots effort to assist refugees fleeing the war in Ukraine. Amazingly, while responding to dire humanitarian needs, our team produced record quarterly adjusted EBITDA that nearly matched the best annual performance in the history of CMC's Europe segment." Ms Smith continued, "In late April, we welcomed Tensar to the CMC organization. Seeing the early results of the teams working together has only further reinforced our confidence in the strategic merits of this transaction and the potential for meaningful commercial synergies. With the onboarding of Tensar, CMC has added a highly attractive new growth platform and is creating a valuable and unique portfolio of solutions for existing and new markets." Demand for CMC's finished steel products in North America was again robust during the quarter, with several key internal and external indicators pointing toward continued strength. Downstream bid volumes, a key indicator of the construction project pipeline, increased meaningfully from a year ago, resulting in the expansion of contract backlog levels. Demand from industrial end markets continued to trend positively, with most end use applications increasing compared to the prior year period. Shipment volumes of finished steel, which include steel products and downstream products, followed typical seasonal patterns, and were essentially unchanged from the prior year period. The average selling price for steel products increased by USD 316 per ton compared to the third quarter of fiscal 2021, while the cost of scrap utilized rose USD 103 per ton. The result was a year-over-year increase of USD 213 per ton in margin over scrap. The average selling price for downstream products increased by USD 281 per ton from the prior year period and USD 75 per ton on a sequential basis The Europe segment reported record adjusted EBITDA of USD 121.0 million for the third quarter of fiscal 2022, up 142% compared to adjusted EBITDA of USD 50.0 million for the prior year quarter. The improvement was driven by a significant expansion in both shipment volume and margin over scrap. Similar to North America, underlying demand for steel products remained robust. Volumes of rebar, merchant bar, and wire rod increased on a year-over-year basis, assisted by the addition of a third rolling line, which improved production flexibility and the mill's ability to capitalize on favorable market conditions. During the first 12 months of operating the new rolling line, quarterly shipment volumes of finished products have increased 35% compared to the average of the preceding five years. As a result of continued strong demand and constrained supply in the wake of trade sanctions against Russia and Belarus, average selling price increased by USD 303 per ton compared to the prior year quarter, while the cost of scrap utilized rose USD 154 per ton. The result was a year-over-year increase in margin over scrap of USD 149 per ton. Ms Smith added "We anticipate strong financial performance to continue in the fourth quarter. Robust demand for each of CMC's major product lines is expected to persist, augmented by our growing downstream backlog and solid levels of new work entering the project pipeline. Margins over scrap in both North America and Europe should remain at levels near those of the third quarter, driven by favorable market conditions across our geographies.” Commercial Metals Company and its subsidiaries manufacture, recycle and fabricate steel and metal products and provide related materials and services through a network of facilities that includes seven electric arc furnace mini mills, two EAF micro mills, one rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland. Through its Tensar division, CMC is a leading global provider of innovative ground and soil stabilization solutions selling into more than 80 national markets through its two major product lines: Tensar geogrids and Geopier foundation systems.
Irving Texas US headquartered steel maker Commercial Metals Company has announced Net earnings were USD 312.4 million for its fiscal third quarter ended 31 May 2022 on net sales of USD 2.5 billion as compared to prior year period net earnings of USD 130.4 million on net sales of USD 1.8 billion. Commercial Metals Company’s Chairman, President & Chief Executive Officer Ms Barbara R Smith said “The third quarter was another remarkable financial result for our Company, underpinned by strong operational execution and robust market conditions across our key geographies. I am extremely proud of CMC's financial achievements during the quarter, especially in Europe. CMC employees in Poland have opened their homes and communities in a heartfelt grassroots effort to assist refugees fleeing the war in Ukraine. Amazingly, while responding to dire humanitarian needs, our team produced record quarterly adjusted EBITDA that nearly matched the best annual performance in the history of CMC's Europe segment." Ms Smith continued, "In late April, we welcomed Tensar to the CMC organization. Seeing the early results of the teams working together has only further reinforced our confidence in the strategic merits of this transaction and the potential for meaningful commercial synergies. With the onboarding of Tensar, CMC has added a highly attractive new growth platform and is creating a valuable and unique portfolio of solutions for existing and new markets." Demand for CMC's finished steel products in North America was again robust during the quarter, with several key internal and external indicators pointing toward continued strength. Downstream bid volumes, a key indicator of the construction project pipeline, increased meaningfully from a year ago, resulting in the expansion of contract backlog levels. Demand from industrial end markets continued to trend positively, with most end use applications increasing compared to the prior year period. Shipment volumes of finished steel, which include steel products and downstream products, followed typical seasonal patterns, and were essentially unchanged from the prior year period. The average selling price for steel products increased by USD 316 per ton compared to the third quarter of fiscal 2021, while the cost of scrap utilized rose USD 103 per ton. The result was a year-over-year increase of USD 213 per ton in margin over scrap. The average selling price for downstream products increased by USD 281 per ton from the prior year period and USD 75 per ton on a sequential basis The Europe segment reported record adjusted EBITDA of USD 121.0 million for the third quarter of fiscal 2022, up 142% compared to adjusted EBITDA of USD 50.0 million for the prior year quarter. The improvement was driven by a significant expansion in both shipment volume and margin over scrap. Similar to North America, underlying demand for steel products remained robust. Volumes of rebar, merchant bar, and wire rod increased on a year-over-year basis, assisted by the addition of a third rolling line, which improved production flexibility and the mill's ability to capitalize on favorable market conditions. During the first 12 months of operating the new rolling line, quarterly shipment volumes of finished products have increased 35% compared to the average of the preceding five years. As a result of continued strong demand and constrained supply in the wake of trade sanctions against Russia and Belarus, average selling price increased by USD 303 per ton compared to the prior year quarter, while the cost of scrap utilized rose USD 154 per ton. The result was a year-over-year increase in margin over scrap of USD 149 per ton. Ms Smith added "We anticipate strong financial performance to continue in the fourth quarter. Robust demand for each of CMC's major product lines is expected to persist, augmented by our growing downstream backlog and solid levels of new work entering the project pipeline. Margins over scrap in both North America and Europe should remain at levels near those of the third quarter, driven by favorable market conditions across our geographies.” Commercial Metals Company and its subsidiaries manufacture, recycle and fabricate steel and metal products and provide related materials and services through a network of facilities that includes seven electric arc furnace mini mills, two EAF micro mills, one rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland. Through its Tensar division, CMC is a leading global provider of innovative ground and soil stabilization solutions selling into more than 80 national markets through its two major product lines: Tensar geogrids and Geopier foundation systems.
