Commercial Metals Company announced financial results for its fiscal third quarter ended May 31, 2020. Third quarter earnings from continuing operations were $64.2 million on net sales of $1.3 billion, compared to prior year period earnings from continuing operations of $78.6 million on net sales of $1.6 billion.
The company’s Americas Recycling segment recorded an adjusted EBITDA loss of $1.7 million for the third quarter of fiscal 2020, compared to adjusted EBITDA of $12.3 million for the prior year quarter. The reduction reflected a challenging environment of lower shipments and decreasing average selling prices, CMC said.
The Americas Mills segment recorded adjusted EBITDA of $133.2 million for the third quarter of fiscal 2020, a decrease of 16 percent compared to adjusted EBITDA of $158.1 million for the third quarter of fiscal 2019. Despite the impact of COVID-19 on the US economy, volumes declined only 4 percent compared to the prior year period due to continued strength in construction activity.
The Americas Fabrication segment recorded adjusted EBITDA of $31.9 million for the third quarter of fiscal 2020, marking a significant improvement from an adjusted EBITDA loss of $23.3 million for the third quarter of fiscal 2019, primarily due to expanded selling price margins over rebar cost.
As for an outlook, Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, said, “We expect construction and infrastructure activity to remain resilient during our fiscal fourth quarter. Our finished product volumes are supported by strong fabrication backlogs, which stood near record-high levels at May 31. Customers’ sentiment about their own summer construction workloads is also encouraging.”