CMC(US:CMC)2025-03-20 10:50Financial Performance - Second quarter net earnings were $25.5 million, or $0.22 per diluted share, compared to $85.8 million, or $0.73 per diluted share in the prior year period[2]. - Adjusted earnings for the second quarter were $29.3 million, or $0.26 per diluted share, down from $85.9 million, or $0.73 per diluted share year-over-year[3]. - Total net sales to external customers decreased to $1,754,376 from $1,848,287 year-over-year, reflecting a decline of 5.1%[25]. - Net earnings for the quarter were $25,473, a decrease from $85,847 in the same quarter last year, resulting in earnings per share of $0.22[25]. - Net earnings for the six months ended February 28, 2025, were a loss of $150,245 compared to a profit of $262,120 for the same period last year[28]. - Adjusted earnings per diluted share for the six months ended February 28, 2025, were $1.04, down from $2.22 in the previous year[33]. EBITDA and Margins - Consolidated core EBITDA was $131.0 million with a core EBITDA margin of 7.5%[5]. - Adjusted EBITDA for the Emerging Businesses Group increased by 31.2% year-over-year to $23.5 million, with an adjusted EBITDA margin of 14.8%[14]. - Adjusted EBITDA for North America Steel Group was $128,818, down 31.7% from $188,205 in the prior quarter, resulting in an adjusted EBITDA margin of 9.3%[22]. - The Europe Steel Group achieved adjusted EBITDA breakeven during the quarter, with an adjusted EBITDA margin of 0.4%, up from (4.5%) in the prior year[12]. - Total adjusted EBITDA for the company was $118,237, compared to a loss of $149,541 in the previous quarter[23]. - Adjusted EBITDA for the six months ended February 28, 2025, was $(31,304), a significant decrease from $502,737 in the prior year[32]. - Core EBITDA margin for the six months ended February 28, 2025, was 9.3%, down from 13.7% in the previous year[32]. Sales and Shipments - Finished steel shipments increased by 3.3% compared to the prior year second quarter, driven by solid North American construction demand[5]. - North America Steel Group reported net sales of $1,386,848, a decrease of 8.7% from $1,518,637 in the previous quarter[22]. - Emerging Businesses Group net sales were $158,864, down 6.5% from $169,415 in the previous quarter, with an adjusted EBITDA margin of 14.8%[23]. - The average selling price per ton for steel products in North America was $814, slightly down from $812 in the previous quarter[22]. - Net sales for the six months ended February 28, 2025, were $3,663,978, a decrease from $3,851,338 in the previous year, representing a decline of approximately 4.9%[32]. Cash and Liquidity - Cash and cash equivalents totaled $758.4 million, with available liquidity of nearly $1.6 billion as of February 28, 2025[6]. - Cash and cash equivalents at the end of the period were $759,426, compared to $639,897 at the end of the same period last year, reflecting an increase of approximately 18.7%[28]. Dividends and Shareholder Returns - The board declared a quarterly dividend of $0.18 per share, marking the 242 consecutive quarterly payments[7]. - The company declared cash dividends per share of $0.18, up from $0.16 in the previous quarter[25]. Future Outlook - The company expects consolidated financial results in the third quarter of fiscal 2025 to rebound, with improved finished steel shipments and adjusted EBITDA margins[15]. - The operational and commercial excellence program, Transform, Advance, and Grow (TAG), is expected to provide financial benefits in fiscal 2025 and beyond[6]. Costs and Liabilities - Cost of goods sold for the quarter was $1,534,829, compared to $1,552,046 in the same quarter last year[25]. - Total current liabilities increased to $1,109,127, up from $834,850, indicating a rise of approximately 32.8%[27]. - The company reported a litigation expense of $354,720 for the six months ended February 28, 2025, with no comparable expense in the prior year[28]. - Total assets decreased to $6,689,710, down from $6,817,839, representing a decline of approximately 1.9%[27]. Capital Expenditures - The company incurred capital expenditures of $204,454 during the six months ended February 28, 2025, compared to $160,772 in the prior year[28].