Commercial Metals Company (CMC) expects successively higher margins, above scrap, on steel products in North America and Europe due to price revisions made in Q2 2021, ended February 28, 2021.

 

The steel fabricator projects its finished steel volumes will remain strong in North America and Europe during the third quarter, in line with normal seasonality and with the onset of construction activity, CMC indicated in a press release on Thursday.

 

CMC’s North American steel shipments and downstream products are anticipated to be upheld by the company’s construction order book while steel products should also profit from growing residential construction spend, improving manufacturing, and the expectation of strength in highway infrastructure.

 

European production is also projected to remain strong due to mounting construction and industrial end-market demand. 

 

The recycler reported record profitability in Q2 2021 despite increasing scrap costs and weather-related interference. The results will drive the company to continue increasing earnings potential in the forthcoming quarters, CMC noted. 

 

The company also plans to continue benefiting from its current network optimization work along with its third rolling line scheduled for a ramp-up in Poland this summer.

 

North American finished steel shipment volumes increased by 5.87pc to 740,000nt (671,317mt) in Q2 2021 from 699,000nt in Q2 2020. Steel products shipments increased by 5.67pc to 1.49mn nt from 1.41mn nt during the same quarterly period.

 

Europe’s steel product shipments fell by 7.1pc to 353,000nt in Q2 2021 against 380,000nt in the same prior-fiscal quarter. However, steel shipment volumes in Europe increased by 4.46pc to 750,000nt from 718,000nt during this timeframe.

 

The steelmaker’s net sales increased by 9pc to $1.46bn in Q2 2021 versus $1.34bn in the prior-year period. Net sales increased by 4.7pc to $2.85bn in the six months ended Feb 2021 compared to $2.73bn in the same period a year earlier.

 

CMC recorded earnings from continuing operations at $66.2mn in Q2 2021 up 4.15pc from its prior-year earnings of $63.6mn. The company’s core EBITDA reached a second-quarter record, up 18pc to $171.1mn in Q2 2021 against $145.3mn in Q2 2020.

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