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Commercial Metals' CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: CMC

Forward-looking statements are made based on management's current expectations and assumptions, and CMC offers no assurance that actual outcomes and results will be as indicated in any forward-looking statements. Except as required by law, CMC does not undertake any obligation to update, amend or clarify any forward-looking statements as a result of future events, new information or otherwise.

Some numbers presented during this call will be non-GAAP financial measures. Reconciliations of such non-GAAP financial measures to their GAAP equivalents may be found in the company's press release.

For now, the opening remarks and introductions, I would now turn the call over to the President and CEO of Commercial Metals Company, Mr. Joe Alvarado.

Joseph Alvarado

Good morning, everyone. Thank you for joining us to discuss CMC's second quarter fiscal 2012 results. I will begin with some second quarter highlights and an update on the progress we are making on a number of important initiatives we discussed with you last quarter. Barbara will then provide the financial details on the quarter, and I will close with some comments on our outlook for the third quarter of fiscal 2012. And after that, we will open the call to questions.

As noted in our press release this morning, we reported net sales of $2 billion for our fiscal 2012 second quarter ended February 29, 2012, an increase of 10% from the second quarter 2011 sales of $1.8 billion. We also reported net earnings of $28.9 million or $0.25 per share in this year's second quarter compared to a net loss of $46.2 million or $0.40 per share for last year's second quarter, an improvement of $75.1 million in net earnings performance.

Barbara will walk you through all the details in a moment, including the impact of discontinued operations.

In addition to substantially improved earnings in the quarter, we generated $95 million of EBIT -- of adjusted EBITDA, which also represents a significant improvement from a year ago.

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