Shares of Commercial Metals Co. (CMC) rose 5.4% premarket Wednesday after the company reported first-quarter earnings that were nearly six times higher than the same period a year prior.
The steel-and-metals company reported earnings a day after it announced a $600 million cash deal to buy Brazilian rival Gerdau SA's steel-reinforcing-bar assets in the U.S. The deal includes 33 rebar fabrication facilities and four mini-mills, the company said.
Commercial Metals reported a profit of $36.8 million, or 31 cents a share, up from $6.3 million, or 5 cents a share, in the year-ago period. The company reported an adjusted operating profit on continued operations of $57.1 million, compared with $20.6 million a year earlier.
The company's Americas mills and recycling businesses both reported increases in adjusted operating profits, while its international mills segment said it more than doubled its adjusted operating profit from a year ago.
The fabrication segment posted an operating loss in the latest quarter as rebar prices rose. Commercial Metals said competition and import-material prices have not allowed the company to pass on higher costs to customers. Bidding activity, however, is strong, the company said.
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(END) Dow Jones Newswires
January 03, 2018 09:23 ET (14:23 GMT)