Commercial Metals Company (NYSE: CMC) today reported a net loss of $35.3 million or $0.32 per share on net sales of $1.6 billion for the quarter ended February 28, 2009. This compares with net earnings of $39.8 million or $0.34 per diluted share on net sales of $2.3 billion for the second quarter last year. This year's second quarter included after-tax LIFO income of $80.7 million or $0.72 per share compared with expense of $38.3 million or $0.32 per diluted share in last year's second quarter. LIFO is an inventory costing method that assumes the most recent inventory purchases or goods manufactured are sold first which in periods of declining prices results in income that eliminates the effect of deflation from operating results. Changes in LIFO are not write downs or write offs or market adjustments. They are changes in cost components based on an assumption of physical inventory flows.Commercial Metals Company is headquartered in Irving at 6565 N. MacArthur Blvd. The company manufactures, recycles and markets steel and metal products and related materials around the world.
Net earnings for the six months ended February 28, 2009, were $26.7 million or $0.23 per diluted share on net sales of $4.0 billion. For the same period last year, net earnings were $108.9 million or $0.91 per diluted share on net sales of $4.4 billion. For the six months ended February 28, 2009, after-tax LIFO income was $154.6 million or $1.36 per diluted share, compared with an expense of $35.5 million or $0.30 per diluted share last year.
CMC Chairman, President and Chief Executive Officer Murray R. McClean said, "The deterioration of global steel markets continued during the quarter, reaching Eastern and Central Europe and Australia, our last markets of relative strength. Volumes, pricing, and margins all declined from the first quarter as destocking continued and demand remained weak. China had a bit of a false start as inventory built at stockists and distributors in anticipation of improving demand after the Chinese New Year which did not materialize. Only our Americas Mills and Americas Fabrication and Distribution segments fared better this quarter than the comparable second quarter of last year. Lower prices and lower inventory quantities triggered LIFO income during the quarter which mitigated a substantial amount of inventory revaluation. Our largest commercial exposures continue to be unwarranted contract cancellations, market claims, price renegotiations, and unexpected inventory positions."