Commercial Metals Posts 2Q Loss

"The deterioration of global steel markets continued during the quarter, reaching eastern and central Europe and Australia, our last markets of relative strength," said Murray R. McClean, chairman, president and chief executive.

Volumes, pricing and margins declined from the first quarter as destocking continued and demand remained weak, he said.

The company did not offer specific guidance for 2009, but said it anticipates a third-quarter loss less than the second quarter.

"It will be rough going for the balance of our fiscal year and likely for the remainder of calendar 2009," McClean said. "There are no sustainable catalysts absent solving the global liquidity crisis."

The company expects an increase in construction in the spring, but it will be seasonal rather than the result of recovery, he said.

And the federal stimulus spending will not have an impact until late this year "and even then expected to be modest," McClean said.

Wall Street analysts expect a profit of 29 cents per share in the third quarter, with sales of $2.03 billion.