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COMMERCIAL METALS COMPANY REPORTS THIRD QUARTER EARNINGS OF $2.8 MILLION

COMMERCIAL METALS COMPANY REPORTS THIRD QUARTER EARNINGS OF $2.8 MILLION
 DALLAS, June 18 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) today reported net earnings of $2.8 million or 25 cents per share on sales of $289 million for the third quarter ended May 31, 1992. This compares with earnings of $2.8 million or 26 cents per share, on sales of $285 million for the same period last year.
 Net earnings for the nine months ended May 31, 1992 were $6 million or 56 cents per share on sales of $810 million. For the same period last year earnings were $7.9 million or 74 cents per share on sales of $849 million. Cash flow provided from operations for the nine month period was $26 million compared to $26 million both this year and last year.
 CMC President and Chief Executive Officer Stanley A. Rabin said, "Operating profit was slightly above last year's third quarter and well above this year's second quarter. Although above normal rainfall continued to adversely affect construction projects the manufacturing segment generated much higher earnings. Steel Group operating profit increased 8 percent over the third quarter of last year. Steel mill tons shipped were up 10 percent for the quarter compared to last year, but with prices down 3 percent, mill operating profit remained about the same. Despite the two week construction shutdown and furnace startup at the Seguin, Texas mill, operating profit exceeded the prior quarter. The startup of the new furnace was very successful. The Copper Tube Division had its best quarter of the year and demand for copper tube is good. Operating profit for the marketing and trading segment was down almost 50 percent from the same quarter a year ago because of slowdowns in Europe and Asia which have resulted in highly competitive markets and pressure on profit margins. The recycling segment reported a larger operating loss for the third quarter compared to the third quarter a year ago, but slightly lower than the second quarter. The supply of scrap remains tight and demand is sluggish with low selling prices. Financial services operating profit was down compared to the same quarter last year because lower U.S. dollar interest rates have reduced revenues and margins."
 Concerning the outlook Rabin said, "Demand for our products is slowly improving in the U.S., but market conditions overseas, especially in Europe and Japan, remain soft. We are beginning to see an increase in the Texas Highway program as a result of the $151 billion surface transportation bill passed earlier this year. We expect this to continue. The outlook for FY 1993 is improving."
 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 May 31 1992 1991
 Revenues: ---- ----
 Net sales $ 288,593 $ 284,806
 Other revenues 1,834 3,203
 Total 290,427 288,009
 Costs and Expenses:
 Costs of goods sold 260,507 258,773
 Selling, general and administrative
 expenses 21,827 21,776
 Interest 2,420 2,007
 Employees' retirement plans 1,223 1,172
 Total 285,977 283,728
 Earnings Before Income Taxes 4,450 4,281
 Income Taxes 1,691 1,477
 Net Earnings $ 2,759 $ 2,804
 Net earnings per share $ .25 $ .26
 Cash dividends per share $ .13 $ .13
 Average shares outstanding 10,910,986 10,743,990
 Nine months ended May 31 1992 1991
 Revenues: ---- ----
 Net sales $ 809,898 $ 848,835
 Other revenues 7,674 8,541
 817,572 857,376
 Costs and Expenses:
 Costs of goods sold 732,644 771,073
 Selling, general and administrative
 expenses 64,501 64,677
 Interest 7,141 6,174
 Employees' retirement plans 3,582 3,349
 807,868 845,273
 Earnings Before Income Taxes 9,704 12,103
 Income Taxes 3,688 4,176
 Net Earnings $ 6,016 $ 7,927
 Net earnings per share $ .56 $ .74
 Cash dividends per share $ .39 $ .39
 Average shares outstanding 10,804,729 10,714,192
 COMMERCIAL METALS COMPANY
 Consolidated Condensed Balance Sheets
 (in thousands)
 May 31 August 31
 1992 1991
 Assets:
 Current Assets:
 Cash and temporary investments $ 51,896 $ 33,215
 Accounts receivable 129,916 118,611
 Financial services loans and
 advances 56,909 58,814
 Inventories 93,910 93,922
 Other 14,127 14,271
 Total Current Assets 346,758 318,833
 Investments, Notes Receivable and Other 6,627 9,202
 Net Property, Plant and Equipment 132,115 132,722
 $ 485,500 $ 460,757
 Liabilities and Stockholders' Equity
 Current Liabilities:
 Commercial paper $ - $20,000
 Financial services notes payable 36,875 35,773
 Accounts payable 78,350 78,682
 Other payables and accrued expenses 51,122 53,834
 Income taxes payable 968 2,171
 Current maturities of long-term
 debt 10,773 8,393
 Total Current Liabilities 178,088 198,853
 Deferred Income Taxes 12,798 12,794
 Long-Term Debt 87,830 45,547
 Stockholders' Equity 206,784 203,563
 $ 485,500 $ 460,757
 BUSINESS SEGMENTS
 (in thousands)
 Periods ended 5/31: Three months Nine months
 1992 1991 1992 1991
 Revenues:
 Manufacturing $113,942 $106,697 $321,813 $320,674
 Recycling 61,562 59,421 165,848 184,345
 Marketing &
 Trading 119,986 124,954 343,220 358,134
 Financial
 Services 849 1,270 2,993 4,027
 Corporate &
 Eliminations (5,912) (4,333) (16,302) (9,804)
 Total Revenues $290,427 $288,009 $817,572 $857,376
 Operating Profit:
 Manufacturing $ 8,183 $ 5,259 $ 18,957 $ 15,376
 Recycling (1,490) (738) (4,732) (912)
 Marketing &
 Trading 1,196 2,241 4,079 5,811
 Financial Services 372 710 1,411 2,255
 Corporate &
 Eliminations (1,775) ( 1,534) (4,198) (5,386)
 Total Operating
 Profit $ 6,486 $ 5,938 $ 15,517 $ 17,144
 Steel mills tons
 shipped 262 238 746 684
 -0- 6/18/92
 /CONTACT: Bob Davis of Commercial Metals Company, 214-689-4354/
 (CMC) CO: Commercial Metals Company ST: Texas IN: MNG SU: ERN


TQ -- NY011 -- 1383 06/18/92 09:20 EDT
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