This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Commercial Metals 2Q Profit, Revenue Declines

IRVING, Texas (AP) â¿¿ Commercial Metals said Thursday that its second-quarter net income tumbled 84 percent because and its overseas performance weakened and it had a bigger tax benefit last year.

Chairman, President and CEO Joe Alvarado said in a statement that seasonal softness was expected during the quarter, along with difficulties abroad due to ongoing economic challenges.

The company is optimistic as the construction season starts to ramp up and expects improved demand in the U.S. But it believes that ongoing softness in most overseas markets will continue to hurt its international marketing and distribution unit.

Commercial Metals, which makes, recycles and markets steel and metal products as well as related materials and services, earned $4.6 million, or 4 cents per share, for the three months ended Feb. 28. That compares with earnings of $28.9 million, or 25 cents per share, a year earlier.

Analysts surveyed by FactSet expected earnings of 18 cents per share.

The current quarter included a tax benefit of $4.7 million, compared with a tax benefit of $15 million a year earlier.

The international mill unit moved to an adjusted operating loss from an adjusted operating profit a year ago as volumes fell 16 percent. The international marketing and distribution segment's adjusted operating profit dropped to $3.9 million from $26.6 million a year earlier, hurt by lower revenue and margins in its raw materials business and its Australian operations.

Revenue declined 12 percent to $1.73 billion from $1.96 billion. Wall Street predicted $1.86 billion in revenue.

Sales for the Americas recycling, Americas mills, international mill and international marketing and distribution divisions dropped.

Commercial Metals Co. also declared a quarterly dividend of 12 cents per share. The dividend will be paid April 23 to shareholders of record April 9.

Shares of the Irving, Texas, company fell 39 cents, or 2.4 percent, to $15.87 in midday trading. Over the past year, the stock has traded in a range of $11.30 to $17.47.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.26 -0.97%
FB $118.00 0.49%
GOOG $698.00 0.81%
YHOO $35.90 -0.31%
TSLA $228.83 -1.50%


Chart of I:DJI
DOW 17,673.04 -77.87 -0.44%
S&P 500 2,051.56 -11.81 -0.57%
NASDAQ 4,732.1470 -31.0770 -0.65%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs