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Nov 30, 2020
Commercial Metals Q1 2021 Earnings Report
Commercial Metals Company reported solid results for Q1 2021, driven by strong operational execution and strategic growth initiatives amid the COVID-19 pandemic.
Key Takeaways
Commercial Metals Company (CMC) announced first quarter fiscal 2021 results with earnings from continuing operations of $63.9 million, or $0.53 per diluted share, on net sales of $1.4 billion. Adjusted earnings were $69.8 million, or $0.58 per diluted share. The company achieved its lowest mill conversion cost per ton in the last two years and saw increased shipment volumes of finished steel products in North America and Europe.
Earnings from Continuing Operations were $63.9 million, or $0.53 per share.
Adjusted Earnings from Continuing Operations reached $69.8 million, or $0.58 per share.
Core EBITDA was $156.6 million, with the lowest mill conversion cost per ton in two years.
Shipment volumes of finished steel products in North America and Europe increased 4% year-over-year.
Commercial Metals
Commercial Metals
Commercial Metals Revenue by Segment
Revenue by Segment
NA Steel Group Revenue
CapyFin.comEurope Steel Group Revenue
CapyFin.com Forward Guidance
The company expects finished steel volumes in North America and Europe to follow typical seasonal trends in the second quarter. Shipments should be supported by the construction backlog in North America, and the company is encouraged by trends in residential construction and industrial activity. Margin headwinds are anticipated to persist in North America due to increases in domestic scrap costs, with the company adjusting price levels on rebar and merchant mill products.
Positive Outlook
- Shipments of steel and downstream products should be supported by construction backlog in North America.
- Encouraged by recent trends in residential construction in North America and Europe.
- Anticipates continuing solid demand for merchant products.
- Recent trends in industrial activity in North America and Europe are positive.
- Company acted swiftly to adjust price levels on rebar and merchant mill products.
Challenges Ahead
- Finished steel volumes for North America and Europe operations to follow typical seasonal trends in the second quarter, which is historically the slowest quarter for both segments
- Margin headwinds will persist in North America during the second quarter in light of recent significant increases in domestic scrap costs.
- Price increases have a timing lag relative to the changes in scrap cost levels.
- Backlog contraction in select geographies.
- Weather related disruptions in the Gulf Coast.
Revenue & Expenses
Visualization of income flow from segment revenue to net income