Commercial Metals Posts 2Q Loss

IRVING, Texas (AP) — Commercial Metals Co. posted a fiscal second-quarter loss Tuesday as the steel and metals maker and recycler struggled with declining prices and demand and the global credit crisis.

The Irving, Texas, company lost $35.3 million, or 32 cents per share, compared with a profit of $39.8 million, or 34 cents per share, in the year-ago period. Losses from continuing operations — which excludes results from businesses that have been, or are in the process of being sold — totaled $34.5 million, or a loss of 31 cents per share. In the year-ago quarter, the company posted earnings from continuing operations of $43 million, or 36 cents per share.

Revenue for the quarter ended Feb. 28 dropped 28 percent to $1.62 billion, from $2.3 billion in the year-ago quarter.

Analysts surveyed by Thomson Reuters expected a profit of 3 cents per share on revenue of $1.89 billion.

In response to falling prices and demand and the credit crisis, Commercial Metals said it recorded expenses of $103.1 million for market inventory adjustments, charges related to its exposure to contracted work that did not materialize, discontinued operations, a bad debt expense, severance costs and impairment charges.