Commercial Metals Company (CMC) has recently released its 10-Q report, providing a detailed insight into its financial performance and operations. CMC is a leading manufacturer, recycler, and fabricator of steel and metal products, operating in the United States, Poland, China, and internationally. The company operates through three segments: North America Steel Group, Europe Steel Group, and Emerging Businesses Group.
In the North America Steel Group segment, CMC's operations include a vertically integrated network of recycling facilities, steel mills, and fabrication operations. The segment processes and sells ferrous and nonferrous scrap metals to various consumers, manufactures finished long steel products, and provides fabricated rebar for concrete reinforcement in construction projects.
The Europe Steel Group segment consists of recycling facilities, an EAF mini mill, and fabrication operations located in Poland. The segment primarily focuses on processing ferrous scrap metals for use by the mini mill, manufacturing steel products, and exporting them to neighboring countries.
The Emerging Businesses Group segment offers construction-related solutions and value-added products, including construction services, ground stabilization solutions, and performance reinforcing steel products.
The report also highlighted significant developments such as the change in reportable segments, the transition in the CEO position, and several acquisitions made by CMC in 2023. Additionally, the company provided insights into its capital expenditures, including the commissioning of a new micro mill in Mesa, Arizona, and the progress of its planned fourth micro mill in Berkeley County, West Virginia.
Furthermore, the report addressed the impact of the Russian invasion of Ukraine on CMC's business, stating that it did not have a direct material adverse impact. However, the invasion led to economic slowdowns in Europe, including significant volatility in commodity prices and credit markets, reductions in demand, supply chain interruptions, and higher global inflation.
The report also noted that there were no material changes to CMC's critical accounting policies and estimates as set forth in the previous year's financial statements.
Today the company's shares have moved -1.7% to a price of $53.75. For more information, read the company's full 10-Q submission here.
