Tue, Jun 25, 2:53 PM (118 days ago)
Commercial Metals Company’s (CMC) quarterly report for the period ending May 31, 2024, reveals a mixed financial performance. Net sales decreased by 11% year-over-year to $2.08 billion, driven by lower average selling prices for steel and downstream products. Net earnings fell to $119.4 million from $234.0 million in the same period last year, primarily due to compressed steel product margins. Adjusted EBITDA for the North America Steel Group fell by 33%, reflecting the decreased metal margin. The Europe Steel Group saw a significant 37% drop in net sales, with adjusted EBITDA turning negative due to lower demand and prices. The Emerging Businesses Group remained stable in net sales but saw a 10% decline in adjusted EBITDA for the nine-month period. Cash from operations dropped to $547.9 million, influenced by lower net earnings and higher working capital needs. The company maintains strong liquidity with $698.3 million in cash and a $600 million revolving credit facility. Future capital expenditures are projected between $400 million and $425 million for 2024.