The company noted that results were strong in the quarter even though the company experienced historical wet weather in the U.S., which reduced shipments.
Adjusted EBITDA in the company’s Americas Mills segment rose 106% year/year in the quarter to $113.9 mln. The segment’s performance was affected by acquired mills as well as increased shipments from its new micro mill in Durant, Oklahoma.
Strong U.S. construction demand was affected by weather in the quarter; several markets recorded the most rainfall that has ever been recorded during the company’s first quarter. These difficult conditions resulted in the delay of certain construction projects. Meanwhile, metal margins are currently at their highest levels since the last recession due to recent strong global demand for rebar.
The company's Americas Recycling segment also reported positive EBITDA, showing a small year/year gain, while, on the flipside, its Americas Fabrication segment and its Corporate and Other segment each reported a loss.
Looking ahead, CMC continues to hold a positive outlook about demand in its key markets. Due to normal seasonality, shipment rates will be reduced at its facilities in the coming quarter. At the same time, the company expects the quarter to be strong in comparison to historical second quarter results, driven by contributions from the company’s strategic growth initiatives.
Following today's results and outlook, shares of CMC have fallen by as much as 4.6% at lows, the worst performing steel stock on the day.