* Sees Q3 loss/shr $0.10 to $0.00 vs est of $0.19
* Sees profit in domestic recycling, mills segment
* Shares up 2 percent
May 18 Commercial Metals Co (CMC.N) said the
uptick in the non-residential construction market could help
the company post a narrower-than-expected loss or possibly
break even in the third quarter.
For the third quarter ending May 31, the company forecast a
loss of up to 10 cents a share.
Analysts on average expect a loss of 19 cents a share,
according to Thomson Reuters I/B/E/S.
"Throughout the quarter there has been a growing confidence
in the markets as volumes increased... Finished goods pricing,
after significant increases, is exhibiting stability at quarter
end, a welcomed relief to our customer base," Chief Executive
Murray McClean said.
Though the non-residential construction market is yet to
bounce back to pre-recession levels, spring and summer months
generally see increased activity while winter is typically a
quiet period for the sector.
The steel and metal products maker expects a profitable
quarter at its domestic recycling and mills segments, which
together make up about half of the company's revenue, after
both segments posted losses in the second quarter.
However, the international mills segment -- that comprises
about 10 percent of the company's sales -- is expected to post
a loss due to start-up expenses related to a new mill in Poland
and melt shop in Croatia.
Shares of the company were trading up 2 percent at $14.90
in afternoon trade on the New York Stock Exchange. The broader
Dow Jones U.S. Iron & Steel Index .DJUSST was down 1
(Reporting by Antonita Madonna Devotta in Bangalore; Editing
by Don Sebastian)