Commercial Metals Q4 Results Top Estimates

(RTTNews) - Steel and metal products maker Commercial Metals Co. (CMC) reported Wednesday a profit for the fourth quarter that soared from last year, reflecting lower asset impairment charges and improved sales. Both earnings per share and quarterly sales also topped analysts' expectations.

"We are pleased with the results of our fourth quarter of fiscal 2014," Chairman, President and CEO Joe Alvarado said in a statement.

The Irving, Texas-based company reported net earnings of $34.93 million, or $0.29 per share for the fourth quarter, sharply higher than $4.06 million, or $0.03 per share in the prior-year quarter.

On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

Results for the latest quarter include LIFO income from continuing operations of $0.01 per share, compared to $0.09 per share of LIFO income from continuing operations in the year-ago quarter.

Total net sales for the quarter increased to $1.90 billion from $1.70 billion in the same quarter last year, and topped eight Wall Street analysts' consensus estimate of $1.82 billion.

Americas recycling reported sales that grew to $352 million from $347million, and sales at Americas mills increased to $526 million from $465 million last year.

At Americas fabrication, sales increased to $444 million from $384 million in the prior-year quarter, while international mill sales declined to $205 million from $223 million in the year-ago quarter.

International marketing and distribution sales were $640 million, up from $503 million a year ago.

Impairment of assets for the quarter was $2.27 million, compared to 13.84 million last year.

On Monday, the company declared a quarterly dividend of $0.12, payable on November 16 to shareholders of record on November 12, 2014.

Furthermore, the board of directors authorized a new share repurchase program under which the Company may repurchase up to $100.0 million of CMC's outstanding common stock from time to time.

The company noted that it continues to focus on improving and evaluating underperforming operations for their long-term viability. As a result of the on-going evaluations, the company decided in September to exit its steel distribution business in Australia4.

"Heading into our fiscal year 2015, many of our key market indicators have shown strength in recent months...........While macroeconomic and geopolitical concerns remain, all indications suggest continued market growth in fiscal 2015," Alvarado added.

In Wednesday's regular trading session, CMC is currently trading at $17.02, up $0.14 or 0.83% on a volume of 0.20 million shares.