Commercial Metals Company has announced financial results for its fiscal fourth quarter and year ended August 31, 2019.
CMC has a steel mill in Columbia County.
Net sales for the fourth quarter increased 18 percent to $1.5 billion from $1.3 billion in the prior year quarter, and for the full year increased 26 percent to $5.8 billion compared to $4.6 billion in the prior year, reflecting increased capacity from the previously announced rebar assets acquisition.
Earnings from continuing operations were $85.9 million, or 72 cents per share, in the fourth quarter compared to $51.3 million, or 43 cents per diluted share, in the prior year quarter. For the full year, earnings from continuing operations were $198.8 million, or $1.67 per diluted share, compared to $135.2 million, or $1.14 per diluted share in the prior year.
Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, said the past year has been transformational for CMC.
“I am proud of what our team accomplished, with results that reflect the successful execution of our growth strategy and the strong fundamentals in the end markets we serve."
"Key milestones in fiscal 2019 included the completion and integration of CMC's largest acquisition to date, the ramp up of our second micro mill in Oklahoma, and the addition of hot spooled rebar capability at our Arizona micro mill. Together, they bolster the strategy that has positioned CMC to be the largest supplier of rebar and a leading producer of merchant bar for the U.S. market place. “
Americas Recycling segment adjusted EBITDA of $4.2 million for the fourth quarter of fiscal 2019 declined compared to $17.0 million for the fourth quarter last year. The decrease reflected a 27 percent drop in ferrous and 7% drop in non-ferrous prices year-on-year, which also constrained volume.
The Americas Mills segment adjusted EBITDA of $160.8 million for the fourth quarter of fiscal 2019 rose 51 percent compared to $106.8 million for the fourth quarter last year, and includes adjusted EBITDA of $58.1 million from the acquired mills, on shipments of 455 thousand tons. Volume increased 45 percent compared to the prior year fourth quarter primarily due to the ramp up of the Oklahoma micro mill and the additional production from the acquired facilities.
The Americas Fabrication segment recorded an adjusted EBITDA loss of $13.2 million for the fourth quarter of fiscal 2019, an improvement compared to an adjusted EBITDA loss of $24.6 million for the prior year fourth quarter. The 2019 fourth quarter included $4.2 million of costs related to the closure of certain acquired locations. As in prior quarters, the fourth quarter EBITDA losses did not include the benefit of the purchase accounting adjustment related to amortization of the unfavorable contact backlog reserve that relates to the acquisition, which was $16.6 million. The acquired locations shipped 172 thousand tons in the 2019 fourth quarter.
CMC's historical locations produced breakeven results in the 2019 fourth quarter. Current rebar bidding activity remains strong and selling prices averaged $963 per ton in the 2019 fourth quarter, $120 per ton or 14%, higher compared to the same period in the prior year. Our International Mill segment adjusted EBITDA of $22.7 million for the fourth quarter of fiscal 2019 declined compared to adjusted EBITDA of $36.7 million for the prior year quarter.
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