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

Trump says Nippon will ‘invest heavily’ in USS rather than buy it
Nippon Steel has agreed to “invest heavily in U.S. Steel as opposed to own it,” President Donald Trump said on Friday during a press conference with Japanese Prime Minister Shigeru Ishiba. U.S. Steel is “a very important company” and was once “the greatest company in the world”. Of potential foreign ownership of the Pittsburgh-based steelmaker, Trump said, “the concept, psychologically, not good."

ArcelorMittal posts solid results as commissioning of Calvert EAF begins
AM/NS Calvert has begun commissioning its new electric-arc furnace, with plans to reach its full annual run rate of 1.65 million short tons a year from now.

Tampa Steel Conference: Tanners on rising capacities and storms brewing across steel
There's a lot of production waiting to come online

USS idles “B” battery at Clairton following explosion
U.S. Steel has idled its "B" Battery at its Clairton Coke Works near Pittsburgh following a “release of excess pressure” inside a section of the battery on Feb. 5.

ArcelorMittal to start building Calvert NGO electrical steel line this year
ArcelorMittal announced on Thursday that it will begin the construction of its new $1.2-billion electrical steel mill in Alabama later this year. The steelmaker said it is proceeding with plans to build the new greenfield mill near its existing AM/NS joint venture in Calvert, Ala. The ArcelorMittal Calvert plant will have an annealing pickling line, […]