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Nov 30, 2021
Commercial Metals Q1 2022 Earnings Report
Commercial Metals Company reported record first quarter fiscal 2022 results driven by strategic transformation and strong market environment.
Key Takeaways
Commercial Metals Company (CMC) announced record first quarter fiscal 2022 results, with earnings from continuing operations reaching $232.9 million, or $1.90 per diluted share. Net sales increased to $2.0 billion, compared to $1.4 billion in the prior year. The company's performance was driven by strong demand in North America and Europe, with both segments reporting record adjusted EBITDA.
Achieved record quarterly Earnings from Continuing Operations of $232.9 million, or $1.90 per diluted share, and record Core EBITDA of $326.8 million.
Both North America and Europe segments reported record Adjusted EBITDA.
Realized significant per ton sequential increase in downstream products’ average selling price from higher new contract pricing.
Continued advancement in CMC's growth strategy — Negotiated acquisition of Tensar Corporation; closed Rancho Cucamonga land sale and received gross proceeds of $313.0 million; and achieved meaningful financial contribution from the new rolling line in Europe
Commercial Metals
Commercial Metals
Commercial Metals Revenue by Segment
Revenue by Segment
NA Steel Group Revenue
CapyFin.comEurope Steel Group Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.com Forward Guidance
The company anticipates strong fiscal year 2022 financial and operational performances. Volumes should remain solid, supported by a growing construction backlog in North America, as well as broad strength across key end markets in both North America and Europe. The fiscal second quarter has historically seen fewer shipping days due to major holidays and winter weather factors. The company expects shipments during the second quarter of fiscal 2022 to follow these typical seasonal trends. Despite additional holidays, CMC anticipates strong financial results, with margins consistent with, or slightly above, recent levels.
Positive Outlook
- Volumes should remain solid.
- Growing construction backlog in North America.
- Broad strength across key end markets in both North America and Europe.
- Anticipate strong financial results.
- Margins consistent with, or slightly above, recent levels.
Challenges Ahead
- Fiscal second quarter has historically seen fewer shipping days due to major holidays.
- Winter weather factors might affect shipping days.
- Shipments during the second quarter of fiscal 2022 to follow these typical seasonal trends.
Revenue & Expenses
Visualization of income flow from segment revenue to net income