US-based rebar producer Commercial Metals Company announced financial results for its fiscal fourth quarter ended August 31, 2024. Net earnings were $103.9 million on net sales of $2.0 billion, compared to prior year period net earnings of $184.2 million on net sales of $2.2 billion.
For the full year fiscal year of 2023-2024, CMC reported net earnings of $485.5 million on net sales of $7.9 billion, compared to prior year net earnings of $859.8 million on net sales of $8.8 billion. The company has recorded its third best financial results in its 109-year history.
In a press release, Peter Matt, President and CEO, said, “During the fourth quarter, we felt the impact of increased macroeconomic and political uncertainty. Though strong by historical standards, our financial results were hampered by weaker sentiment that negatively influenced steel product pricing and margins. Certain contemplated construction projects appear to be on hold until greater clarity emerges regarding the future path of interest rates and the outcome of U.S. elections. We believe the underlying near and long-term demand fundamentals remain strong based on customer conversations and continued healthy downstream bid activity underpinned by the structural trends of infrastructure investment, re-shoring of manufacturing, electrification, and the need to address a chronic housing shortage in the U.S."
As for an outlook, the company said it expects consolidated financial results in the first quarter of fiscal year 2024-2025 to decline from the fourth quarter because of continued macroeconomic uncertainty and temporary sentiment within areas of the construction industry.