IRVING, Texas (AP) — Commercial Metals' fiscal first-quarter net income slid 54 percent, as the prior-year period included a large tax benefit and its Americas Recycling unit dealt with weaker demand.
But President, Chairman and CEO Joe Alvarado said in a statement Monday that there are signs that the domestic construction end markets are starting to recover. Its stock rose more than 3 percent in morning trading.
The company, which makes, recycles and markets steel and metal products as well as related materials and services, earned $49.7 million, or 42 cents per share, for the three months ended Nov. 30. That's down from $107.7 million, or 93 cents per share, a year earlier.
The year-ago period included 88 cents per share in tax benefits. The current quarter included a 14 cents per share gain related to the sale of its 11 percent ownership stake in Trinecke Zelezarny AS and 13 cents per share in LIFO income.
Stripping out these items, Commercial Metals earned 15 cents per share in the most recent quarter.
Analysts polled by FactSet expected earnings of 17 cents per share.