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May 31, 2021
Commercial Metals Q3 2021 Earnings Report
Commercial Metals Company reported record third quarter fiscal 2021 results driven by robust demand and strong execution.
Key Takeaways
Commercial Metals Company announced record third quarter fiscal 2021 results with earnings from continuing operations of $130.4 million, or $1.07 per diluted share, on net sales of $1.8 billion. The company achieved record Core EBITDA from Continuing Operations of $230 million, up 49% year-over-year and 35% sequentially, and record North America and Europe segment Adjusted EBITDA. The company's liquidity position remained solid with cash and cash equivalents of $443.1 million.
Achieved record Earnings from Continuing Operations of $130 million, or $1.07 per diluted share.
Achieved record Core EBITDA from Continuing Operations of $230 million, up 49% year-over-year and 35% sequentially.
Achieved record North America and Europe segment Adjusted EBITDA.
Network optimization initiative continues; seventh consecutive quarter of year-over-year reduction in North America controllable costs per ton.
Revenue by Segment
Forward Guidance
Strong demand across multiple end-use markets should support robust shipment levels of finished steel during the fourth quarter in both North America and Europe. Margins over scrap on steel products in North America and Europe are expected to be relatively flat or up modestly from third quarter levels.
Positive Outlook
- Strong demand across multiple end-use markets should support robust shipment levels of finished steel during the fourth quarter in both North America and Europe.
- Construction activity is strong and the industrial sectors are growing in both the U.S. and Central Europe, as both regions continue to recover from the pandemic.
- Increased willingness of downstream customers in our North America segment to contract new work.
- Stability of our construction backlog both point to continued demand strength.
- Several widely monitored construction indicators that generally lead activity by nine to twelve months, which have improved significantly in 2021.
Challenges Ahead
- Margins over scrap on steel products in North America and Europe to be relatively flat or up modestly from third quarter levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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