CMC reported net earnings of $119.4 million for Q3 fiscal 2024, translating to $1.02 per diluted share, on net sales of $2.1 billion. Compared to the prior year period, this represents a decline in earnings from $234.0 million to $119.4 million, primarily attributed to lower margins over scrap costs in the North America Steel Group.
The North America Steel Group saw a sequential increase in finished steel shipments, though down year-over-year. Adjusted EBITDA for this segment decreased to $246.3 million, reflecting ongoing margin challenges despite operational improvements. Conversely, the Europe Steel Group reported improved financial results with an adjusted EBITDA loss narrowing to $4.2 million, driven by higher margins and improved shipment volumes.
The Emerging Businesses Group experienced stable net sales at $188.6 million and significant sequential growth in adjusted EBITDA to $38.2 million, fueled by robust demand for
CMC continues to advance its strategic initiatives, including the ramp-up of the Arizona 2 micro mill and preparations for a new micro mill in West Virginia. These projects aim to capitalize on favorable long-term trends in construction and infrastructure development.
Looking ahead, CMC expects consolidated financial performance in Q4 fiscal 2024 to mirror Q3 levels. Stable to modest improvements are anticipated in adjusted EBITDA across segments, driven by steady demand and operational efficiencies. Positive economic indicators, such as increased infrastructure spending and favorable interest rates, are expected to bolster future growth prospects, particularly in North America.
NYSE: CMC
Price: $32.15
Change: - 0.3%
Currently, CMC's stock is experiencing a sideways trend, characterized by stability in prices with minor fluctuations. This trend suggests a balanced investor sentiment with neither strong buying nor selling pressures dominating the market. Key technical indicators include Moving Averages (MA) and Moving Average Convergence Divergence (MACD), both of which signal stable market conditions with potential for gradual price movements. Fibonacci retracement levels indicate crucial support at $31.50 and resistance at $33.00, guiding potential price actions in the near term. Bollinger Bands reveal a narrow trading range, reinforcing the sideways trend observed.
