Steel Mills

CMC earnings slide, reports solid start to construction season
Written by Laura Miller
June 20, 2024
Commercial Metals Co.
Third quarter ended May 31 | 2024 | 2023 | Change |
---|---|---|---|
Net sales | $2,078.5 | $2,345.0 | (-11%) |
Net earnings (loss) | $119.4 | $234.0 | (-49%) |
Per diluted share | $1.02 | $1.98 | (-48%) |
Nine months ended May 31 | |||
Net sales | $5,928.8 | $6,590.3 | (-10%) |
Net earnings (loss) | $381.6 | $675.6 | (-44%) |
Per diluted share | $3.25 | $5.69 | (-43%) |
CMC reported solid demand and a healthy start to the construction season in its latest quarterly earnings statement.
In its fiscal third quarter ended May 31, Irving, Texas-based CMC posted net earnings of $119.4 million on sales of just over $2 billion. Coming off a strong 2023, earnings and sales showed year-over-year (y/y) declines of 49% and 11%, respectively.
President and CEO Peter Matt noted that the longs and scrap producer “benefited from a healthy start to the 2024 construction season.”
Although steel product shipments rose 11% sequentially, they were down 3% from a year earlier. Rebar shipments of 520,000 short tons increased 13% from the prior quarter but were down 3% y/y. Merchant bar shipments rose 4% sequentially to 244,000 st but showed a 2% y/y decline.
Despite historic amounts of rain in the quarter, CMC reported solid demand in North America. The pipeline of construction projects remains “historically strong,” the company said, noting a host of potential projects coming into the market.
Outlook
Matt noted that, “Fundamentals remain good within our North American markets, supporting stable to modestly improving steel product margins, healthy shipment levels, and steady downstream backlog volumes.”
He anticipates CMC’s results for the current quarter to be in line with Q3, with steady sequential shipments of finished steel in North America.
Longer-term positive structural trends in manufacturing, nearshoring, and energy security and transition are driving demand in North America, Matt noted.
“Additionally, an inflection in interest rates has the potential to unlock pent-up demand in several construction sectors, including residential markets where a significant shortage of housing units exists,” he added.
West Coast rebar market update
After reporting a temporary oversupply of rebar in the West Coast market in its last earnings report, CMC on Thursday expressed improving conditions.
“A combination of supply discipline and improved seasonal demand has moved rebar markets in the Western US into much better balance,” Matt commented.
Europe
In Europe, consumption of long steel products is “substantially below historical levels,” according to CMC. Despite an improving macroeconomic environment in Poland, where CMC operates a mill, the company expects challenging market conditions on the continent to persist.
Update on expansions
The ramp-up of CMC’s Arizona 2 (AZ2) micro mill continues, with merchant bar quality (MBQ) commissioning progressing, the company said. It previously disclosed it is targeting a full run rate of 500,000 st, 350,000 st of rebar, and 150,000 st of merchant bar.
Meanwhile, construction continues on CMC’s fourth micro mill in West Virginia. Operations at the 500,000-st-per-year facility are slated to begin late in 2025.

Laura Miller
Read more from Laura MillerLatest in Steel Mills

SSAB announces $74M expansion in Alabama
The project will expand heat treat capacity at its Axis, Alabama plant

ArcelorMittal’s EAF in Alabama expects first heat in Q2
The facility at AMNS Calvert will be the first EAF in North America capable of supplying exposed automotive grades with domestically melted and poured material.

Nucor’s Topalian lauds Trump’s trade policies, downplays impact
Nucor’s top exec Leon Topalian said the benefit of the current administration’s aggressive trade policies “trumps” any risk of potentially higher raw materials prices.

SSAB reports higher production, shipments
But profits slipped vs. last year.

Nucor earnings slump in first quarter, but better times seen ahead
Nucor’s profits fell precipitously in the first quarter, but the company has a rosier outlook for the following quarter.