Commercial Metals Posts Steep Decline In 4Q Profit

IRVING, Texas (AP) — Commercial Metals Co. reported a precipitous drop in fiscal fourth-quarter earnings Friday as the steel maker struggled with weaker prices and demand amid the economic slowdown.

Net income plunged to $7.2 million, or 6 cents per share, for the three months ended Aug. 31, from $63.5 million, or 55 cents per share, during the same period a year earlier.

The news sent shares of the Irving, Texas, company down $1.61, or 10 percent, to $14.26 in afternoon trading.

The results included income of $24.4 million, or 21 cents per share, from inventory accounting, versus an expense of $90.9 million, or 78 cents per share, in the year-earlier quarter.

Net sales more than halved to $1.46 billion from $3.15 billion.

Analysts on average expected a profit of a penny per share on revenue of $1.46 billion, according to a survey by Thomson Reuters. Wall Street estimates generally exclude one-time items.

For the full fiscal year, Commercial Metals said its earnings plummeted 91 percent to $20.8 million, or 18 cents per share, from $232 million, or $1.97 per share, during its previous fiscal year.