Commercial Metals Swings to 1Q Loss as Litigation-Related Costs Hinder Results

Dow Jones01-06

By Denny Jacob

Commercial Metals swung to a loss in its latest quarter as litigation-related costs weighed on the bottom line.

The Irving, Texas-based steelmaker swung to a loss of $175.7 million, or $1.54 a share, for the first quarter ended Nov. 30, from earnings of $176.3 million, or $1.49 a share, a year earlier. Included in its results was an estimated net after-tax charge of $265 million that reflected a verdict reached in litigation.

Earnings came in at 78 cents a share on an adjusted basis. The results matched estimates of analysts polled by FactSet.

Sales came in at $1.91 billion, down from about $2 billion a year earlier. Analysts polled by FactSet expected $1.85 billion.

Chief Executive Peter Matt said financial results continued to be hindered by economic uncertainty that has weighed on new construction activity.

"We remain confident that this weaker demand environment will be temporary as we expect the underlying drivers across infrastructure, non-residential and residential end markets will provide multiyear support for our business," said Matt.

Commercial Metals said it expects consolidated financial results in the second quarter to decline from the first-quarter level.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

January 06, 2025 07:17 ET (12:17 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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