Commercial Metals Co. reports financial results.Company (NYSE NYSE See: New York Stock Exchange : CMC (Common Messaging Calls) A programming interface specified by the XAPIA as the standard messaging API for X.400 and other messaging systems. CMC is intended to provide a common API for applications that want to become mail enabled. 1. ) today reported record first quarter net earnings of $10.8 million or 70 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. on sales of $588 million for the quarter ended November November: see month. 30, 1995. This is an increase of 70% compared with net earnings of $6.4 million or 44 cents per share on sales of $411 million for the same period last year which included nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items that decreased net income $3.1 million. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was a record $21.6 million for the quarter, an increase of 47% compared to $14.7 million last year. CMC President and Chief Executive Officer Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. A. Rabin Ra·bin , Yitzhak or Itzhak 1922-1995. Israeli military and political leader who commanded Israeli forces in the Six-Day War (1967) and served as prime minister (1974-1977 and 1992-1995). He shared the 1994 Nobel Peace Prize. said, "The Manufacturing segment, led by the CMC Steel Group, was the principal earnings contributor. The CMC Steel Group operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. increased 13% from last year's first quarter and the SMI-Owen Companies were profitable for the quarter. First quarter records were achieved for steel mill tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. melted melt v. melt·ed, melt·ing, melts v.intr. 1. To be changed from a solid to a liquid state especially by the application of heat. 2. , rolled and shipped. Steel mill shipments were 409 thousand tons, an increase of 31% over the same quarter last year (which excluded SMI (1) (Storage Management Initiative) The initiative developed by the SNIA in 2003 to create a single standard interface for storage management technologies used by multiple vendors and networking communities. South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. ) while the average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. was flat. Results in our steel fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. businesses were also excellent with operating profit 67% above the same period last year. The Copper Tube Division operating profit was down one-third from the first quarter a year ago. The Recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. segment operating profit also decreased about one-third from the same period last year as a result of lower percentage gross margins. Operating profit for the Marketing and Trading segment was 21% above a year ago on significantly higher revenues." Concerning the outlook, Rabin said, "It appears that markets will remain weaker during the second quarter but we expect consumption in the U.S. to reaccelerate once inventory levels are corrected and the drop in interest rates begins to work its way through the economy. Our underlying construction markets are firm; however, the manufacturing sector is sluggish. We anticipate that the Southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
Southeast or South East can refer to:  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). looks weaker. We
continue to be optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about this fiscal year." Commercial Metals Company Commercial Metals Company NYSE: CMC is an United States based steel and metal manufacturer founded in 1915. It owns four steel minimills in Texas, Alabama, South Carolina and Arkansas, one copper minimill (Howell Metal Company) in Virginia, fabricators, and recyclers in the and subsidiaries manufacture, recycle re·cy·cle tr.v. re·cy·cled, re·cy·cling, re·cy·cles 1. To put or pass through a cycle again, as for further treatment. 2. To start a different cycle in. 3. a. and market steel and metal products, related materials and services through a network of over 90 locations including 4 steel minimills, 19 steel fabrication plants, 3 steel joist plants, 3 steel fence fence [short for defense], humanly erected barrier between two divisions of land, used to mark a legal or other boundary, to keep animals or people in or out, and sometimes as an ornament. In newly settled lands fences are usually made of materials at hand, e.g. post manufacturing plants, 2 railcar rebuilding facilities, 8 concrete related product warehouses, an industrial products supply company, a copper tube mill, 34 metal recycling facilities and 15 marketing and trading offices in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and in strategic overseas markets. -0-
COMMERCIAL METALS COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands except share data)
Three months ended
-------------------------
11/30/95 11/30/94
----------- -----------
Revenues:
Net sales $ 588,238 $ 411,434
Other revenues 1,981 2,304
----------- -----------
590,219 413,738
Costs and Expenses:
Cost of goods sold 530,282 365,683
Selling, general and
administrative expenses 35,712 27,324
Interest expense 3,697 3,029
Employees' retirement plans 3,402 2,354
Litigation accrual -- 6,650
----------- -----------
573,093 405,040/a
Earnings Before Taxes 17,126 8,698
Income Taxes 6,294 2,326/b
----------- -----------
Net Earnings/c $ 10,832 $ 6,372
=========== ===========
Net earnings per share $ .70 $ .44 Cash dividends per common share $ .12 $ .12 Average shares outstanding 15,571,619 14,537,716
BUSINESS SEGMENTS
(in thousands) Three months ended
-------------------------
11/30/95 11/30/94
----------- -----------
Revenues:
Manufacturing $ 244,740 $ 161,738
Recycling 122,628 100,821
Marketing and Trading 236,107 162,463
Corporate and Eliminations (13,256) (11,284)
----------- -----------
Total Revenues $ 590,219 $ 413,738
=========== ===========
Operating Profit:
Manufacturing $ 15,188 $ 13,822
Recycling 1,514 2,269
Marketing and Trading 4,500 3,715
Corporate and Eliminations (379) (8,079)
----------- -----------
Total Operating Profit $ 20,823 $ 11,727
=========== ===========
Steel Mill Tons Shipped 409 311 Steel Fabrication Plants Tons Shipped 149 95 Scrap Metal Tons Processed and Shipped 433 349
/a: Includes a pre-tax charge of $6.65 million for a litigation
accrual.
/b: Includes a nonrecurring tax credit of $1.0 million due to a
favorable resolution of significant tax issues with the Internal
Revenue Service for years audited.
/c: The LIFO method of inventory valuation had the effect of
increasing net earnings for the quarter $146 thousand (1 cent per
share) compared to a decrease in net earnings of $73 thousand (1 cent
per share) last year.
COMMERCIAL METALS COMPANY
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
November 30 August 31
1995 1995
----------- -----------
Assets:
Current Assets:
Cash $ 10,872 $ 21,018
Accounts receivable 284,342 268,657
Inventories 200,813 208,114
Other 33,809 36,316
----------- -----------
Total Current Assets 529,836 534,105
Other Assets 4,217 4,259
Net Property, Plant and Equipment 217,020 209,739
----------- -----------
$ 751,073 $ 748,103
=========== ===========
Liabilities and Stockholders' Equity
Current Liabilities:
Commercial paper $ -- $ --
Notes payable 5,848 5,189
Accounts payable 112,592 107,906
Other payables and accrued expenses 135,213 137,933
Income taxes payable 5,299 3,246
Current maturities of long-term debt 14,084 14,108
----------- -----------
Total Current Liabilities 273,036 268,382
Deferred Income Taxes 21,393 18,553 Long-Term Debt 155,840 158,004
Stockholders' Equity 300,804 303,164
----------- -----------
$ 751,073 $ 748,103
=========== ===========
COMMERCIAL METALS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three months ended
-------------------------
11/30/95 11/30/94
----------- -----------
Cash Flows from Operating Activities
Net earnings $ 10,832 $ 6,372
Adjustments to earnings not
requiring cash:
Depreciation and amortization 10,563 8,202
Provision for losses on receivables 256 331
Other (82) (188)
----------- -----------
Cash flows from operations before
changes in operating assets
and liabilities 21,569 14,717
Changes in operating assets and
liabilities (net of effect of
Owen acquisition):
Decrease (increase) in
accounts receivable (17,090) 7,525
Decrease (increase) in inventories 7,301 (4,887)
Decrease (increase) in other assets 2,549 987
Increase (decrease) in accounts payable,
accrued expenses and income taxes 2,779 (12,271)
----------- -----------
Net cash flows from operating activities 17,108 6,071
Cash Flows from Investing Activities
Acquisition of Owen, net of cash acquired (2,232) (24,994)
Temporary investments -- 13,168
Purchases of property, plant and equipment (9,359) (5,018)
Sales of property, plant and equipment 82 188
----------- -----------
Net cash used by investing activities (11,509) (16,656)
Cash Flows from Financing Activities
Commercial paper -- net change -- (10,000)
Notes payable -- net change 659 6,253
New long-term debt -- 60,000
Refinance long-term debt of acquisition -- (32,000)
Payments on long-term debt (2,188) (2,181)
Stock issued under stock option,
purchase, and bonus plans 389 (1,315)
Treasury stock acquired (12,759) --
Tax benefits related to stock option plan -- 1,332
Dividends paid (1,846) (1,714)
----------- -----------
Net cash provided (used) by financing
activities (15,745) 7,869
Increase (Decrease) in Cash and
Cash Equivalents (10,146) (2,716)
Cash and Cash Equivalents at
Beginning of Year 21,018 19,095
----------- -----------
Cash and Cash Equivalents at
End of Period $ 10,872 $ 16,379
=========== ===========
CONTACT: Commercial Metals Co., Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. Bob Davis
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