CMC Achieves Record Low Incident Rate, Reports Strong Second Quarter Results Amidst Uncertain Market Conditions
CMC, a leading steel and construction company, has announced its second quarter results for fiscal 2025. Despite economic uncertainty impacting steel pricing and new construction project awards, the company reported strong financial performance.
In a call to investors, Peter Matt, President and Chief Executive Officer of CMC, highlighted the company's outstanding safety performance, noting that the first half of fiscal 2025 marked a new milestone on their journey towards ensuring the safety and well-being of their people. The company achieved a record low incident rate, consistent with world-class performance, and recorded its lowest number of OSHA recordable events since the second half of fiscal 2018.
CMC reported net earnings for the second quarter of $25.5 million, or $0.22 per diluted share on net sales of $1.8 billion. Excluding after-tax charges, adjusted earnings were $29.3 million or $0.26 per diluted share. This performance is a testament to the company's ability to execute targeted cost optimization and margin enhancement opportunities, in addition to their strategic, operational and commercial excellence initiatives.
Results in CMC's North American Steel Group continued to be impacted by economic uncertainty, but the company saw several bright spots emerge during the latter part of the second quarter. These developments are believed to signal a near-term inflection in profitability for the segment.
'I couldn't be more pleased with how our business responded to the challenge,' said Peter Matt. 'Each of our segments was able to drive financial benefits to the bottom line by executing on targeted cost optimization and margin enhancement opportunities.'
CMC's ability to adapt to uncertain market conditions, while maintaining a strong safety record, is a significant achievement in an industry marked by volatility. The company's commitment to strategic growth plans and operational excellence initiatives positions it well for future success.
'We want everyone to leave their shift in the same condition in which they arrived,' Peter Matt emphasized. 'Our team's outstanding safety performance is a testament to our values and a key driver of our business success.'
The company's financial results, including its strong adjusted earnings, demonstrate its resilience in the face of economic uncertainty. As market conditions improve, CMC's strategic growth plans and operational excellence initiatives are expected to drive further growth and profitability.
