Commercial Metals Company (CMC) has reported 103.16 percent jump in profit for the quarter ended May 31, 2017. The company has earned $39.27 million, or $0.34 a share in the quarter, compared with $19.33 million, or $0.17 a share for the same period last year. Revenue during the quarter grew 12.65 percent to $1,382.62 million from $1,227.39 million in the previous year period. Gross margin for the quarter contracted 175 basis points over the previous year period to 12.54 percent. Total expenses were 95.33 percent of quarterly revenues, up from 95.06 percent for the same period last year. That has resulted in a contraction of 27 basis points in operating margin to 4.67 percent.
Operating income for the quarter was $64.62 million, compared with $60.64 million in the previous year period.
However, the adjusted operating income for the quarter stood at $64.85 million compared to $60.94 million in the prior year period. At the same time, adjusted operating margin contracted 27 basis points in the quarter to 4.69 percent from 4.97 percent in the last year period.
Joe Alvarado, chairman of the Board and chief executive officer, commented, "Continued strength across our markets, particularly in construction activity in both the United States and Poland, contributed to very strong volumes shipped this quarter and our best quarterly adjusted EBITDA from continuing operations over the past couple of years. Additionally, our tireless focus on what we control, including minimizing our costs and providing market leading customer service helped offset some of the significant metal margin compression we faced and allowed us to deliver these solid financial results."
Operating cash flow drops significantlyCommercial Metals Company has generated cash of $18.91 million from operating activities during the nine month period, down 96.27 percent or $487.95 million, when compared with the last year period. The company has spent $207.13 million cash to meet investing activities during the nine month period as against cash outgo of $150.10 million in the last year period. It has incurred net capital expenditure of $160.20 million on net basis during the nine month period, up 58.59 percent or $59.19 million from year ago period.
The company has spent $53.19 million cash to carry out financing activities during the nine month period as against cash outgo of $357.49 million in the last year period.
Cash and cash equivalents stood at $275.78 million as on May 31, 2017, down 43 percent or $208.08 million from $483.86 million on May 31, 2016.
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