Steel News

Commercial Metals Sees Strength in Non-Res Construction, Completes Ramp-Up of New Mill 

6/24/2019 - Buoyed by continuing strength in non-residential construction, long products maker Commercial Metals Company saw its fiscal third-quarter profits nearly double to US$78.4 million. 

For the quarter ending 31 May 2019, the company recorded a profit of 66 cents per diluted share on sales of US$1.6 billion. In the same quarter last year, the company posted a profit of nearly US$40 million, or 34 cents per diluted share, on sales of US$1.2 billion. 

In a statement, Commercial Metals chairman, chief executive and president Barbara Smith said earnings were supported by non-residential construction, which looks to remain healthy. 

"Our outlook for demand remains very positive driven by the continued strength in non-residential construction activity levels in our markets," she said. "Leveraging the growth in our business from the (acquisition of the Gerdau assets), combined with the continued favorable long steel margin environment and improvement in our fabrication segment, we anticipate a strong finish to our fiscal year.” 

Smith told analysts during a conference call that Commercial Metals’ customers, who point to their backlog and strength in indicators such as the Architectural Billing Index, also are upbeat about construction activity. 

In another front, Smith said the company commissioned its new rebar spooler at its Mesa, Ariz., micro-mill. The company announced the project in late 2017. It is the second spooler in its fleet.

Its first spooler is at its Durant, Okla., micro-mill. Smith said the company has completed the ramp-up of the Durant plant, which is exceeding expectations.