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.
Revenue declined 10 percent to $1.79 billion from $1.99 billion. Wall Street forecast $1.89 billion in revenue.
The Americas Recycling division faced lower demand in the quarter, which hurt ferrous and nonferrous prices. The Americas Fabrication unit reported an adjusted operating profit compared with an adjusted operating loss a year earlier as backlog margins improved and material pricing stabilized.
At the international mill segment results were hurt by ongoing softness in Europe. The international marketing and distribution division was helped by the Trineke Zelezarny stake sale.
Commercial Metals Co. also declared a quarterly dividend of 12 cents per share. The dividend will be paid on Feb. 1 to shareholders of record on Jan. 18.
Its shares rose 51 cents, or 3.3 percent, to $16.05 in morning trading. Its stock is approaching its 52-week high of $16.48 almost a year ago. It fell as low as $11.30 on June 1.