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COMMERCIAL METALS COMPANY REPORTS SECOND QUARTER EARNINGS OF $438,000; EXPECTS STRONGER SECOND HALF

COMMERCIAL METALS COMPANY REPORTS SECOND QUARTER EARNINGS OF $438,000;
 EXPECTS STRONGER SECOND HALF
 DALLAS, March 19 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) today reported net earnings of $438,000 or 4 cents per share on sales of $263 million for the second quarter ended Feb. 29, 1992. This compares with earnings of $1.5 million or 14 cents per share, on sales of $277 million for the same period last year.
 Net earnings for the six months ended Feb. 29, 1992 were $3.3 million or 30 cents per share on sales of $521 million. For the same period last year earnings were $5.1 million or 48 cents per share on sales of $564 million. Cash flow provided from operations for the six month period was $16 million compared to $17 million last year.
 CMC President and Chief Executive Officer Stanley A. Rabin said, "The past two quarters have been difficult, but we expect the second half of this fiscal year to be better. Although torrential winter rains adversely affected construction markets the Manufacturing segment was still the principal earnings contributor with operating profit up slightly from last year's second quarter. Despite the inclement weather, steel mill shipments were up about 10 percent for the quarter, but with prices down about 6 percent, mill operating profits fell about 11 percent from last year on a 3 percent increase in sales. The Copper Tube Division was profitable for the quarter. Operating profit for the Marketing and Trading segment was down 25 percent from the same quarter a year ago because of reduced selling prices and pressure on profit margins. The Recycling segment reported an increased operating loss for the second quarter compared to the second quarter a year ago because of poor weather conditions, a reduced supply of scrap and lower selling prices; however, the second quarter loss was slightly less than the first quarter and prices have improved recently. Financial Services operating profit was down compared to the same quarter last year because lower U.S. dollar interest rate levels have reduced revenues and margins."
 Concerning the outlook Rabin said, "There is some evidence that demand is improving in the U.S. and Mexico continues its growth. Market conditions overseas, especially in Germany and Japan, are not improving. Longer term we are very optimistic about all of our businesses and the prospects for a strong recovery beyond the current recession. We should soon begin to see some favorable impact from the recently passed $151 billion surface transportation bill because Texas will receive more construction funds under the new bill than it has previously."
 Commercial Metals Company and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network of over seventy locations including steel minimills, steel fabrication plants, a copper tube mill, recycling facilities and trading offices in the United States and trading and representative offices in strategic overseas markets.
 COMMERCIAL METALS COMPANY
 Consolidated Statements of Earnings
 (In thousands except share data)
 Three months ended 2/29/92 2/28/91
 Revenues:
 Net sales $ 263,136 $ 276,697
 Other revenues 2,631 3,209
 Total 265,767 279,906
 Costs and expenses:
 Costs of goods sold 240,427 254,125
 SG&A expenses 20,903 20,853
 Interest 2,542 1,971
 Employees' retirement plans 1,187 642
 265,059 277,591
 Earnings before income taxes 708 2,315
 Income taxes 270 799
 Net earnings $ 438 $ 1,516
 Net earnings per share $ .04 $ .14
 Cash dividends per share $ .13 $ .13
 Average shares outstanding 10,788,280 10,633,030
 Six months ended 2/29/92 2/28/91
 Revenues:
 Net sales $ 521,305 $ 564,029
 Other revenues 5,840 5,338
 Total 527,145 569,367
 Costs and expenses:
 Costs of goods sold 472,137 512,300
 SG&A expenses 42,674 42,901
 Interest 4,721 4,167
 Employees' retirement plans 2,359 2,177
 Total 521,891 561,545
 Earnings before income taxes 5,254 7,822
 Income taxes 1,997 2,699
 Net earnings $ 3,257 $ 5,123
 Net earnings per share $ .30 $ .48
 Cash dividends per share $ .26 $ .26
 Average shares outstanding 10,751,601 10,699,294
 Consolidated Condensed Balance Sheets
 (In thousands)
 2/29/92 8/31/91
 Assets:
 Current Assets:
 Cash and temporary investments $ 44,873 $ 33,215
 Accounts receivable 138,338 118,611
 Financial services loans and advances 43,085 58,814
 Inventories 93,774 93,922
 Other 12,774 14,271
 Total current assets 332,844 318,833
 Investments, notes receivable and other 7,250 9,202
 Net property, plant and equipment 131,188 132,722
 Total $ 471,282 $ 460,757
 Liabilities and Stockholders' Equity
 Current liabilities:
 Commercial paper $ -- $ 20,000
 Financial services notes payable 21,910 35,773
 Accounts payable 84,088 78,682
 Other payables and accrued expenses 45,586 53,834
 Income taxes payable 1,030 2,171
 Current maturities of long-term debt 9,335 8,393
 Total current liabilities 161,949 198,853
 Deferred income taxes 12,798 12,794
 Long-term debt 91,326 45,547
 Stockholders' equity 205,209 203,563
 Total $ 471,282 $ 460,757
 Business Segments
 (In thousands)
 Three months ended 2/29/92 2/28/91
 Revenues:
 Manufacturing $ 98,749 $ 102,964
 Recycling 51,940 56,317
 Marketing & trading 118,604 121,029
 Financial services 1,041 1,462
 Corporate & eliminations (4,567) (1,866)
 Total revenues $ 265,767 $ 279,906
 Operating Profit:
 Manufacturing $ 4,148 $ 3,610
 Recycling (1,593) (1,028)
 Marketing & trading 1,420 1,926
 Financial services 533 835
 Corporate & eliminations (1,652) (1,461)
 Total operating profit $ 2,856 $ 3,882
 Steel mills tons shipped 230 210
 Six months ended 2/29/92 2/28/91
 Revenues:
 Manufacturing $ 207,871 $ 213,977
 Recycling 104,286 124,924
 Marketing & trading 221,872 233,180
 Financial services 2,144 2,757
 Corporate & eliminations (9,028) (5,471)
 Total revenues $ 527,145 $ 569,367
 Operating Profit:
 Manufacturing $ 10,774 $ 10,117
 Recycling (3,242) (174)
 Marketing & trading 2,883 3,570
 Financial services 1,039 1,545
 Corporate & eliminations (2,423) (3,852)
 Total operating profit $ 9,031 $ 11,206
 Steel mills tons shipped 484 446
 -0- 3/19/92
 /CONTACT: Bob Davis of Commercial Metals, 214-689-4300/
 (CMC) CO: Commercial Metals Company ST: Texas IN: MNG SU: ERN


TS -- NY017 -- 9541 03/19/92 09:22 EST
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