By IRVING, Texas – Commercial Metals Company (NYSE:CMC) reported fourth quarter earnings that fell short of analyst expectations, as macroeconomic uncertainty and weaker sentiment pressured steel product pricing and margins.
Commercial Metals’ shares slipped 0.5% in early trading following the release.
The steel and metal products manufacturer posted net earnings of $103.9 million, or $0.90 per diluted share, for the quarter ended August 31, 2024. This missed the analyst consensus estimate of $0.93 per share. Revenue came in at $2 billion, in line with expectations.
“Though strong by historical standards, our financial results were hampered by weaker sentiment that negatively influenced steel product pricing and margins,” said Peter Matt, President and CEO.
The company’s North America Steel Group saw adjusted EBITDA decrease to $210.9 million from $336.8 million a year ago, driven by lower margins over scrap costs on steel and downstream products.
Looking ahead, Commercial Metals expects consolidated financial results to decline sequentially in the first quarter of fiscal 2025 due to continued macroeconomic uncertainty and dampened sentiment in certain construction industry areas.
“We believe current market conditions represent a transient period of softness created by uncertainty regarding important factors that influence any major capital investment – the cost of funding and future government policy,” Matt added.
The company declared a quarterly dividend of $0.18 per share, representing a 13% YoY increase.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
