Commercial Metals matches last year's record second quarter earnings of $10 million despite winter storms.DALLAS--(BUSINESS WIRE)--March 19, 1996--Commercial Metals 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 net earnings of 67 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. for the second quarter ended February February: see month. 29, 1996 which matched last year's record second quarter. Net earnings were $10 million on sales of $515 million which compares with net earnings of $10.3 million on sales of $531 million for the same period last year. Net earnings for the six months ended February 29, 1996 were a record $1.36 per share or $20.8 million on sales of $1.1 billion. For the same period last year earnings were $1.11 per share or $16.6 million on sales of $942 million. Cash flow provided from operations for the six month period was $43 million compared with $37 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 a record second quarter from the CMC Steel Group, was the largest contributor to earnings. 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. for the segment was 21 percent above the second quarter last year. Although three of our four steel minimills were affected by adverse weather, record 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. were shipped for a second quarter. Shipments from our four minimills were 386,000 tons or 4 percent higher than the same period last year while there was a 3 percent decrease in the average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. . Our steel fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. plants had an excellent quarter with higher prices and shipments. The SMI-Owen Steel group of companies are profitable for the year to date. The Copper Tube Division operating profit was down compared with the second quarter last year. 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 had a satisfactory quarter although well below the outstanding second quarter last year. The Marketing and Trading segment operating profit was 12 percent higher than the same period last year." Concerning the outlook, Rabin said, "We expect our shipments to accelerate in the second half and anticipate an increase in steel prices. Nonferrous non·fer·rous adj. 1. Not composed of or containing iron. 2. Of or relating to metals other than iron. nonferrous Adjective 1. markets are uncertain. The inventory correction CORRECTION,punishment. Chastisement by one having authority of a person who has committed some offence, for the purpose of bringing him to legal subjection. 2. It is chiefly exercised in a parental manner, by parents, or those who are placed in loco parentis. is running its course and the underlying end use markets are sound." "Private nonresidential Adj. 1. nonresidential - not residential; "the commercial or nonresidential areas of a town"; "community colleges are typically nonresidential" residential - used or designed for residence or limited to residences; "a residential hotel"; "a residential quarter"; "a construction and housing sales are stronger while highway and public building construction is firm. 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: An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the nation. Europe Europe (y  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). remains weak but we see signs of a modest improvement in Japan and most
of the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. is running at a decent level."
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 Six months ended
------------------------- -------------------------
2/29/96 2/28/95 2/29/96 2/28/95
----------- ----------- ----------- -----------
Revenues:
Net sales $ 514,855 $ 530,907 $ 1,103,093 $ 942,341
Other revenues 3,326 2,060 5,307 4,364
----------- ----------- ----------- -----------
518,181 532,967 1,108,400 946,705
Costs and Expenses:
Cost of goods sold 457,227 472,703 987,509 838,386
Selling, general
and administrative
expenses 37,700 37,280 73,412 64,604
Interest expense 4,160 4,168 7,857 7,197
Employees'
retirement plans 3,269 2,698 6,671 5,052
Litigation accrual -- -- -- 6,650
----------- ----------- ----------- -----------
502,356 516,849 1,075,449 921,889
Earnings Before Taxes 15,825 16,118 32,951 24,816
Income Taxes 5,815 5,841 12,109 8,167
----------- ----------- ----------- -----------
Net Earnings/a $ 10,010 $ 10,277 $ 20,842 $ 16,649
=========== =========== =========== ===========
Net earnings per share $ .67 $ .67 $ 1.36 $ 1.11 Cash dividends per common share $ .12 $ .12 $ .24 $ .24 Average shares outstanding 15,025,543 15,451,182 15,298,581 14,994,449
BUSINESS SEGMENTS
(in thousands)
Three months ended Six months ended
------------------------- -------------------------
2/29/96 2/28/95 2/29/96 2/28/95
----------- ----------- ----------- -----------
Revenues:
Manufacturing $ 239,803 $ 243,396 $ 484,543 $ 405,134
Recycling 109,774 133,785 232,402 234,606
Marketing and
Trading 177,648 168,251 413,755 330,714
Corporate and
Eliminations (9,044) (12,465) (22,300) (23,749)
----------- ----------- ----------- -----------
Total Revenues $ 518,181 $ 532,967 $ 1,108,400 $ 946,705
=========== =========== =========== ===========
Operating Profit:
Manufacturing $ 13,603 $ 11,247 $ 28,791 $ 25,069
Recycling 2,644 6,351 4,158 8,620
Marketing and
Trading 4,211 3,752 8,711 7,466
Corporate and
Eliminations (473) (1,064) (852) (9,142)
----------- ----------- ----------- -----------
Total Operating
Profit $ 19,985 $ 20,286 $ 40,808 $ 32,013
=========== =========== =========== ===========
Steel Mill Tons Shipped 386 371 795 699 Steel Fabrication Plants Tons Shipped 154 143 303 252 Scrap Metal Tons Processed and Shipped 424 434 857 792
/a: The LIFO method of inventory valuation had the effect of
increasing net earnings for the quarter $722 thousand (5 cents per
share) compared to a decrease in net earnings of $1.3 million (9
cents per share) last year, and for the six months net earnings were
$868 thousand higher (6 cents per share) compared to a decrease of
$1.4 million (9 cents per share) last year.
COMMERCIAL METALS COMPANY
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
February 29 August 31
1996 1995
-------- --------
Assets
Current Assets:
Cash $ 10,978 $ 21,018
Accounts receivable 294,108 268,657
Inventories 215,539 208,114
Other 31,866 36,316
-------- --------
Total Current Assets 552,491 534,105
Other Assets 4,878 4,259
Net Property, Plant and Equipment 218,017 209,739
-------- --------
$775,386 $748,103
======== ========
Liabilities and Stockholders' Equity
Current Liabilities:
Commercial paper $ 30,000 $ --
Notes payable 30,142 5,189
Accounts payable 105,166 107,906
Other payables and accrued expenses 110,403 137,933
Income taxes payable 6,176 3,246
Current maturities of long-term debt 11,557 14,108
-------- --------
Total Current Liabilities 293,444 268,382
Deferred Income Taxes 21,393 18,553 Long-Term Debt 148,676 158,004
Stockholders' Equity 311,873 303,164
-------- --------
$775,386 $748,103
======== ========
COMMERCIAL METALS COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six months ended
----------------------
02/29/96 02/28/95
-------- --------
Cash Flows from Operating Activities:
Net earnings $ 20,842 $ 16,649
Adjustments to earnings not requiring cash:
Depreciation and amortization 21,056 19,045
Provision for losses on receivables 882 1,149
Other (156) (220)
-------- --------
Cash flows from operations before changes
in operating assets and liabilities 42,624 36,623
Changes in operating assets and liabilities
(net of effect of Owen acquisition):
Decrease (increase) in receivables (27,482) (11,991)
Decrease (increase) in inventories (7,425) (23,024)
Decrease (increase) in other assets 3,831 (1,498)
Increase (decrease) in accounts payable,
accrued expenses and income taxes (28,580) (8,500)
-------- --------
Net cash used by operating activities (17,032) (8,390)
Cash Flows from Investing Activities:
Acquisition of Owen, net of cash acquired (2,232) (24,994)
Temporary investments -- 19,174
Purchases of property, plant and equipment (20,849) (11,759)
Sales of property, plant and equipment 156 220
-------- --------
Net cash used by investing activities (22,925) (17,359)
Cash Flows from Financing Activities:
Commercial paper -- net change 30,000 (10,000)
Notes payable -- net change 24,953 5,364
New long-term debt -- 60,000
Refinance long-term debt of acquisition -- (32,000)
Payments on long-term debt (11,879) (2,352)
Stock issued under stock option,
purchase, and bonus plans 3,939 1,580
Treasury stock acquired (13,465) --
Tax benefits related to stock option plan -- 1,451
Dividends paid (3,631) (3,536)
-------- --------
Net cash provided by financing activities 29,917 20,507
Decrease in Cash and Cash Equivalents (10,040) (5,242)
Cash and Cash Equivalents at Beginning of Year 21,018 19,095
-------- --------
Cash and Cash Equivalents at End of Year $ 10,978 $ 13,853 ======== ======== CONTACT: Commercial Metals Debbie Debbie (or Deb) is a fairly common given name, usually feminine, short for Deborah (or Debra) (which means "bee" in Hebrew) and is popular in most English-speaking countries. It reached its height of popularity in the United States in the 1970s. L. Okle, 214/689-4354 |
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