CMC - Commercial Metals slips despite big jump in quarterly profit

Commercial Metals (CMC -1.7%) shares turn lower in choppy trading after reporting FQ2 adjusted earnings that beat expectations, but shipment volumes of finished steel fell 10% Y/Y, affected by widespread weather challenges as well as unusually strong shipments in the prior-year quarter. Q2 net income jumped by nearly 6x to $383.3M from $66.4M a year ago, as the price of finished steel products continued to rise in the quarter, boosting the company's margins, and net sales rose by a third to ~$2B. Commercial Metals said its North America segment reported record margins on sales of both steel products and raw materials in Q2, with steel products enjoying four straight quarters of Y/Y margin expansion. The company's Q2 North America average selling price for steel products increased by $346/ton Y/Y while the cost of scrap utilized rose $92/ton, resulting a $254/ton Y/Y increase in margin over scrap. The company said it

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Commercial Metals slips despite big jump in quarterly profit