Commercial Metals Co (NYSE:CMC) posted financial report for its first quarter closed November 30, 2017. Net earnings for Q1 2018 came at $36.8 million on net sales of $1.2 billion. This is against net earnings of $6.3 million on net sales of $1 billion for Q1 2017.
Earnings from continuing operations came at $38.5 million for Q1 2018 versus $4.9 million for the comparable period of the previous fiscal year. For the quarter closed November 30, 2017, earnings comprised a net post tax benefit of $1.8 million from continuing operations, linked to the exit of the Global Marketing and Distribution division. As a result of sale of CMC Cometals, the outcome of this segment have been showcased as discontinued operations for reported periods.
Commercial Metals’ liquidity position as of the close of November 30, 2017 was strong, with cash/cash equivalents of $130.2 million as well as availability under the firm’s accounts receivables sales and credit facilities of around $617.5 million. The firm regularly assesses the use of its cash in attempts to increase total shareholder return, counting capital deployment, share repurchases, dividends and debt repayment.
Barbara Smith, the CEO and President of Commercial Metals, expressed that they recorded robust financial performance during their Q1 2018. In both the International Mill and Americas Mills divisions, demand from the construction segment remained robust, which led in extremely good earnings. In fact, the Polish businesses posted the highest quarterly profits since 2008. The Recycling division of America also had the best quarterly performance since 2012 boosted by mounting non-ferrous pricing and a continued robust demand for ferrous material.
In the last trading session, the stock price of Commercial Metals gained 0.92% to close the day at $25.27. The gains came at a share volume of 2.07 million compared to average share volume of 1.92 million.