Commercial Metals misses Street
(Reuters) - Metal recycler Commercial Metals Co's (CMC.N) third-quarter profit missed analysts' expectations, hurt by lower margins at its international mill segment.
Billionaire investor Carl Icahn cut his stake in Commercial Metals to 7.49 percent from 9.98 percent in April, three months after his $1.73 billion hostile bid failed to pick up support among the company's other shareholders.
Commercial Metals' net profit rose to $40.7 million, or 35 cents per share, for the quarter ended May 31, compared with $36.2 million, or 31 cents per share, last year.
Net sales fell 5 percent to $2 billion.
Analysts on average had expected earnings of 37 cents per share, on revenue of $2.14 billion, according to Thomson Reuters I/B/E/S.
International mill shipments declined 12 percent and sales at the segment, which makes up 13 percent of total sales, fell 21 percent.
The company said it expects the segment to continue facing difficult market conditions in the current quarter.
Shares of Irving, Texas-based Commercial Metals closed at $11.88 on Tuesday on the New York Stock Exchange. The stock fell 19 percent in the last three months.
(Reporting by Divya Lad in Bangalore; Editing by Maju Samuel)
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