Commercial Metals Q3 2024 – Net Earnings Drop to $119.4M

Commercial Metals Company (CMC) has reported its financial results for the third quarter of fiscal 2024, highlighting a net earnings of $119.4 million, or $1.02 per diluted share, on net sales of $2.1 billion. This is a notable decrease from the prior year period, which saw net earnings of $234.0 million, or $1.98 per diluted share, on net sales of $2.3 billion.

The consolidated core EBITDA for CMC was $256.1 million with a core EBITDA margin of 12.3%. The company's cash and cash equivalents totaled $698.3 million as of May 31, 2024, with available liquidity of nearly $1.5 billion. During the quarter, CMC repurchased 931,281 shares of common stock valued at $51.8 million, leaving $458.6 million available under the current share repurchase authorization. The board of directors also declared a quarterly dividend of $0.18 per share of CMC common stock, representing an increase of approximately 13% on a year-over-year basis.

In terms of business segments, the North America Steel Group experienced a decrease in adjusted EBITDA to $246.3 million in the third quarter of fiscal 2024, down from $367.6 million in the prior year period. However, the Europe Steel Group achieved near breakeven results, continuing the trend of improving performance despite a challenging market backdrop. The Emerging Businesses Group's adjusted EBITDA and adjusted EBITDA margin rebounded sharply, reflecting continued strong demand for CMC’s high-margin construction solutions.

Looking ahead, CMC expects consolidated financial results in the fiscal fourth quarter to be consistent with third-quarter levels. Finished steel shipments within the North America Steel Group are anticipated to be flat on a sequential basis, while adjusted EBITDA margin should remain relatively stable. Financial results for the Europe Steel Group are expected to continue the quarter-to-quarter improvement trend despite challenging market conditions. Additionally, financial results for the Emerging Businesses Group should improve modestly, driven by steady underlying market fundamentals and a healthy order book.

The market has reacted to these announcements by moving the company's shares 4.2% to a price of $52.85. For more information, read the company's full 8-K submission here.

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