Commercial Metals Company (CMC, Financial) filed Quarterly Report for the period ended 2012-05-31.
Commercial Metals Company has a market cap of $1.37 billion; its shares were traded at around $12.64 with a P/E ratio of 12.7 and P/S ratio of 0.2. The dividend yield of Commercial Metals Company stocks is 4.1%. Commercial Metals Company had an annual average earning growth of 0.2% over the past 10 years.
Americas Fabrication During the third quarter of 2012, this segment reported adjusted operating profit of $0.2 million as compared to an adjusted operating loss of $14.7 million in the prior year's quarter marking a significant improvement. The segment benefited from stable material pricing and improved market conditions in commercial construction markets resulting in stronger volume and pricing. Additionally, LIFO expense decreased to $1.4 million during the third quarter of 2012 as
International Mill We include the mimimill, CMC Zawiercie (“CMCZ”), recycling and fabrication operations in Poland in our International Mill segment. During the third quarter of 2012, this segment s adjusted operating profit was $1.3 million as compared to an adjusted operating profit of $22.6 million in prior year's quarter. This segment's adjusted operating profit decreased as the Polish economy has slowed amid new economic and political instability in Europe and a decline in infrastructure spending for new projects in Poland. Exports remain strong due to the weakening Polish zloty. Our mill operated at 82% of capacity in the third quarter of 2012, a decrease from 87% in the third quarter of 2011.
The Company recorded a tax benefit of $11.5 million during the three months ended May 31, 2012 related to federal and state research and development tax credits for fiscal years 2008 through 2011. During the nine months ended May 31, 2012, the Company recognized a tax benefit of $102 million for ordinary worthless stock and bad debt deductions on the investment in CMCS. These tax benefits are the primary reason for the variance from the statutory tax rate of 35%. Additionally, the effective tax rate is also impacted by state and local taxes increasing the rate and earnings or losses generated in foreign jurisdictions decreasing the rate. State and local taxes are generally consistent while the composition of domestic and foreign earnings can create larger fluctuations in the rate.
Discontinued operations primarily consist of CMCS, which was classified as a discontinued operation in the first quarter of 2012. These operations reported adjusted operating profit of $2.6 million during the third quarter of 2012 as compared to adjusted operating loss of $8.6 million in the same period in the prior year. The results for the third quarter of 2012 primarily relate to the liquidation of working capital as operations were ceased in the second quarter of 2012. These operations reported an adjusted operating loss of $21.5 million and $33.4 million for the nine months ended May 31, 2012 and May 31, 2011, respectively. The first nine months of 2012 includes $18.0 million of severance expense associated with closing the facility.
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Commercial Metals Company has a market cap of $1.37 billion; its shares were traded at around $12.64 with a P/E ratio of 12.7 and P/S ratio of 0.2. The dividend yield of Commercial Metals Company stocks is 4.1%. Commercial Metals Company had an annual average earning growth of 0.2% over the past 10 years.
Highlight of Business Operations:
Within the segment, adjusted operating profit for our five domestic steel mills was $62.6 million for the third quarter of 2012 as compared to an adjusted operating profit of $67.6 million for the prior year s third quarter. The results were primarily impacted from margin compression partially offset by higher volumes as compared to the third quarter of 2011. Results were also negatively impacted from lower LIFO income of $3.0 million recorded in the third quarter of 2012 as compared to LIFO income of $6.1 million recorded in the third quarter of 2011. Our mills operated at 82% of capacity, an increase from 73% in the third quarter of 2011.Americas Fabrication During the third quarter of 2012, this segment reported adjusted operating profit of $0.2 million as compared to an adjusted operating loss of $14.7 million in the prior year's quarter marking a significant improvement. The segment benefited from stable material pricing and improved market conditions in commercial construction markets resulting in stronger volume and pricing. Additionally, LIFO expense decreased to $1.4 million during the third quarter of 2012 as
International Mill We include the mimimill, CMC Zawiercie (“CMCZ”), recycling and fabrication operations in Poland in our International Mill segment. During the third quarter of 2012, this segment s adjusted operating profit was $1.3 million as compared to an adjusted operating profit of $22.6 million in prior year's quarter. This segment's adjusted operating profit decreased as the Polish economy has slowed amid new economic and political instability in Europe and a decline in infrastructure spending for new projects in Poland. Exports remain strong due to the weakening Polish zloty. Our mill operated at 82% of capacity in the third quarter of 2012, a decrease from 87% in the third quarter of 2011.
The Company recorded a tax benefit of $11.5 million during the three months ended May 31, 2012 related to federal and state research and development tax credits for fiscal years 2008 through 2011. During the nine months ended May 31, 2012, the Company recognized a tax benefit of $102 million for ordinary worthless stock and bad debt deductions on the investment in CMCS. These tax benefits are the primary reason for the variance from the statutory tax rate of 35%. Additionally, the effective tax rate is also impacted by state and local taxes increasing the rate and earnings or losses generated in foreign jurisdictions decreasing the rate. State and local taxes are generally consistent while the composition of domestic and foreign earnings can create larger fluctuations in the rate.
Discontinued operations primarily consist of CMCS, which was classified as a discontinued operation in the first quarter of 2012. These operations reported adjusted operating profit of $2.6 million during the third quarter of 2012 as compared to adjusted operating loss of $8.6 million in the same period in the prior year. The results for the third quarter of 2012 primarily relate to the liquidation of working capital as operations were ceased in the second quarter of 2012. These operations reported an adjusted operating loss of $21.5 million and $33.4 million for the nine months ended May 31, 2012 and May 31, 2011, respectively. The first nine months of 2012 includes $18.0 million of severance expense associated with closing the facility.
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