Irving, Texas-based Commercial Metals Co. (CMC) says it has earned $67.8 million, or 56 cents per share, in its recently completed fourth quarter, down by 21 percent compared with the $85.9 million, or 72 cents per share, it earned in the same period last year.
The scrap processing and electric arc furnace (EAF) steelmaking firm closed its 2020 fiscal year in the quarter ending Aug. 31. For the year, CMC says it earned $278.3 million, or $2.31 per share, up by 41 percent from the $198.8 million, or $1.67 per share, earned in the prior fiscal year.
In the 2020 fiscal year, CMC’s results indicate its EAF mills paid an average of $238 per ton for ferrous scrap, down 16.2 percent from the $284 per ton paid on average in the 2019 fiscal year.
“Fiscal 2020 was an exceptional year for CMC, and our strong results – including enhanced earnings, increased cash flow, additional operational flexibility, and a more robust balance sheet – demonstrate the value of CMC’s purposeful strategic transformation completed over the last several years and our position as a leader in concrete reinforcement,” says Barbara R. Smith, the company’s president, CEO and board chair.
“The past year was also one of unprecedented challenges that altered the work and home life of each of our employees,” continues Smith. “I could not be prouder of the way the CMC team members responded, delivering a banner year for our company despite the difficulties presented by the COVID-19 pandemic.”
Regarding what’s ahead, Smith comments, “We continue to strategically build for the future. We expect our ongoing network optimization efforts will yield additional margin and working capital benefits, and our third rolling line in Poland to begin commissioning toward the end of this fiscal year. In addition, we recently announced the construction of a third micro mill [in Arizona], which will be the world's first merchant product-capable micro mill upon its completion in fiscal 2023.”