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Commercial Metals Co. (CMC), based in Irving, Texas, says its net income of $312.4 million earned in the quarter ending May 31 represents a 140% increase from the $130.4 million dollars earned during the same period in 2021.

During the period March 1 through May 31 this year, which represents CMC’s third quarter of fiscal 2022, the company said it earned $483.9 million in “basic earnings before interest, tax, depreciation and amortization (EBITDA), an increase of 110% year over year.”

“Scrap margins in North America and Europe reflect strong market conditions and favorable customer sentiment,” according to the company, which also cites “the continued strength of [the] Downstream pipeline in North America, with record bidding activity and backlog levels in terms of volume and price” as reason for optimism.

Barbara R. Smith, Chairman, President and Chief Executive Officer of CMC, said, “The third quarter was another remarkable financial result for our company, supported by strong operational execution and market conditions. robust in our key geographies. Our team delivered record quarterly Adjusted EBITDA that nearly matched the best annual performance in CMC’s Europe segment history.

Smith also commends CMC employees at its steel complex in Poland for the humanitarian efforts in response to Ukrainians fleeing Russia’s invasion of that country. “CMC employees in Poland have opened up their homes and communities in a sincere grassroots effort to help refugees fleeing war in Ukraine,” she notes.

CMC, operator of several scrap-fueled electric arc furnace (EAF) steel mills, says demand for its finished steel products in North America was robust in the quarter, with several key internal and external indicators pointing to strength. keep on going. “Steel products saw five consecutive quarters of year-over-year margin expansion, while raw material sales margins increased for nine consecutive quarters,” the company said.

During the period March to May 2022, the average selling price of steel products increased by $316 per ton compared to the third quarter of fiscal 2021, while the cost of scrap used increased of $103 per ton. “The result was a year-over-year increase of $213 per ton in scrap margin,” says CMC.

In Europe, the company has faced supply constraints, but CMC writes, “Due to continued strong demand and limited supply following trade sanctions against Russia and Belarus, the average [steel] the selling price increased by $303 per ton compared to the year-ago quarter, while the cost of scrap used increased by $154 per ton. The result was a year-over-year increase in scrap margin of $149 per ton. »

Looking ahead, Smith notes, “We expect the strong financial performance to continue into the fourth quarter. Robust demand for each of CMC’s core product lines is expected to persist, augmented by our growing downstream backlog and solid levels of new work entering the project pipeline. Scrap margins in North America and Europe are expected to remain at levels close to those of the third quarter, thanks to favorable market conditions in all our geographies.

She adds, “The anticipated start-up in early calendar year 2023 of our Arizona 2 micromill will provide CMC with greater flexibility to take advantage of these anticipated favorable demand conditions.