ERO - Commercial Metals Bets on US Demand as Europe Market Ails | Benzinga
Commercial Metals Company's (NYSE: CMC) results are gaining from strong demand in North America for each of its primary product lines. CMC is implementing price rises across its mill products, which will aid growth. The company's solid balance sheet bodes well.
However, results have been impacted by lower steel product margins than scrap costs. The company expects margins on steel products to experience further compression in the upcoming quarters. Sluggish demand in Europe is putting pressure on pricing and margins. These market conditions in Europe are expected to persist.
Solid Demand & Pricing Actions: The impacts of the robust demand in North America for each of Commercial Metals' major product lines are expected to be reflected in the company's results. CMC is also implementing price rises across its mill products in response to rapidly rising scrap costs, which will sustain margins.
The company expects the financial performance of the Emerging Businesses Group to gain from stable underlying market fundamentals and a solid order book. Business circumstances for the Europe Steel Group are gradually improving and should further benefit from increasing residential construction activity.
Impressive Strategic Actions: Commercial Metals will benefit from the Infrastructure Investment and Jobs Act signed in November 2021, which will provide 1.2 trillion in funding over five years and stimulate an estimated 1.5 million tons of incremental annual rebar demand at a full ...