Commercial Metals Co (CMC, Financial) released its earnings report for the fourth quarter and full year fiscal 2023 on October 12, 2023. The company reported net earnings of $184.2 million, or $1.56 per diluted share, on net sales of $2.2 billion for Q4. This compares to prior year period net earnings of $288.6 million, or $2.40 per diluted share, on net sales of $2.4 billion. For the full year fiscal 2023, CMC reported net earnings of $859.8 million, or $7.25 per diluted share, on net sales of $8.8 billion compared to prior year net earnings of $1,217.3 million, or $9.95 per diluted share, on net sales of $8.9 billion.
Company Performance and Financial Highlights
CMC's North America segment saw an increase in adjusted EBITDA from the prior year period, driven by a solid demand environment, strong margins, and good cost control. The company also reported meaningful progress on strategic growth initiatives, including the successful start-up of Arizona 2 production, record quarterly Tensar earnings contribution, and the integration of EDSCO Fasteners.
CMC's balance sheet and liquidity position remained strong. As of August 31, 2023, cash and cash equivalents totaled $592.3 million, with available liquidity of $1.6 billion. During the quarter, CMC repurchased 352,000 shares of common stock valued at $18.6 million. As of August 31, 2023, $86.7 million remained available under the current share repurchase authorization.
Outlook
CMC expects first quarter consolidated financial performance to remain strong by historical standards, but decline from the fourth quarter as a result of seasonally lower shipments, steel product margin compression in North America, and the continuation of challenging market conditions in Europe.
Financial Tables
The financial tables provided in the earnings report detail CMC's performance across various segments, including North America and Europe. The North America segment reported net sales of $1.9 billion in Q4 and $7.3 billion for the full fiscal year 2023. The Europe segment reported net sales of $301.2 million in Q4 and $1.4 billion for the full fiscal year 2023.
Conclusion
Despite the challenges posed by the market environment in Europe, CMC's overall performance in Q4 and the full fiscal year 2023 was strong. The company's strategic growth initiatives and cost control measures have contributed to its robust financial results.
