Commercial Metals (CMC) Misses Q2 EPS by 1c

Commercial Metals (NYSE: CMC) reported Q2 EPS of $0.26, $0.01 worse than the analyst estimate of $0.27. Revenue for the quarter came in at $1.05 billion versus the consensus estimate of $1.16 billion.

Outlook

Smith continued, "We have positioned CMC to take advantage of the strong market demand we expect for the balance of the year. In the U.S., the recent tax reform legislation is providing confidence for the underlying growth of the economy, prompting capital investment which should result in the increased consumption of steel. The Section 232 trade remedy details are still being finalized; however, we are hopeful that it will lead to a leveling of the playing field against imports. At our International Mill segment, we forecast high levels of demand, from both the Polish and North European markets, to continue the strong results of this business.

We are completing the exit of our International Marketing and Distribution business and plan to utilize the proceeds to both strengthen our balance sheet as well as invest in our core steel manufacturing segments. We anticipate that our Durant, Oklahoma facility will be operating near its capacity of approximately 350,000 tons per year by the end of the 2018 fiscal year, and we are working on our integration plans for the announced acquisition. We look forward to completing the closing conditions over the coming months and when the transaction closes, we see significant opportunity for cost synergies and value creation for our customers and shareholders."

For earnings history and earnings-related data on Commercial Metals (CMC) click here.

You May Also Be Interested In

• Primoris cuts 2026 outlook on renewables cost overruns, COO exits
• Accenture downgraded by TD Cowen on AI concerns
• Assurant (AIZ) is Piper Sandler's Weekly Focus Idea