Reuters logo
UPDATE 1-Commercial Metals sees narrower-than-expected Q3 loss
May 18, 2010 / 6:56 PM / 8 years ago

UPDATE 1-Commercial Metals sees narrower-than-expected Q3 loss

* 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 (Reuters) - 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 percent. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Don Sebastian)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below