Welcome to the Commercial Metals Company (CMC) Q3 2024 earnings call transcript for the period ending March 31, 2024. During this call, we will review our financial performance, key initiatives, and market outlook. Our goal is to provide a comprehensive overview of CMC’s business operations and strategic direction. We’ll also address questions from analysts and investors to provide further insights into our future prospects.
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For the third quarter of fiscal year 2024, CMC has delivered another strong performance. Our revenue for the quarter reached an impressive $2.5 billion, representing a 12% increase year-over-year. This growth was primarily driven by higher volumes in both our North American and European segments. Our diverse product portfolio and strategic geographic presence have allowed us to capitalize on market opportunities and maintain stability amidst global economic fluctuations.
Our gross profit for Q3 2024 stood at $450 million, a 15% increase compared to the same quarter last year. This improvement can be attributed to our ongoing cost-control measures, efficient production processes, and favorable raw material pricing. Furthermore, our operational excellence initiatives have significantly boosted productivity and minimized downtime, contributing to our overall profitability.
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EBITDA for the quarter was recorded at $375 million, which marks a 14% year-over-year growth. This robust performance underscores our commitment to driving operational efficiency and maximizing shareholder value. We have continued to make strategic investments in technology, infrastructure, and talent development to sustain our momentum and ensure long-term success.
Net income attributable to stockholders for Q3 2024 was $250 million, or $2.08 per diluted share. This represents a notable improvement from the $2.00 per diluted share reported in the same period last year. The increase in net income reflects our strong operational performance, disciplined cost management, and effective capital allocation strategies.
In our North American segment, we experienced a 10% increase in shipments of steel products compared to Q3 2023. The demand from construction and industrial sectors remained robust, supported by infrastructure investments and overall economic resilience. Our European operations also performed well, with a 14% rise in shipments, driven by strong customer demand and successful market penetration initiatives.
I would like to highlight our ongoing commitment to sustainability, which is central to our business strategy. We have made significant progress in reducing our carbon footprint and enhancing our environmental, social, and governance (ESG) initiatives. In Q3 2024, we achieved a 5% reduction in carbon emissions compared to the previous quarter. This achievement aligns with our long-term goal of achieving net-zero carbon emissions by 2050.
Furthermore, we have continued to engage with local communities and invest in social programs that create positive impacts. Our workforce development programs have helped to bridge the skills gap in the industry, providing opportunities for underrepresented groups and fostering a more inclusive work environment.
Our balance sheet remains strong, with a solid liquidity position and prudent financial management. As of March 31, 2024, we had $300 million in cash and cash equivalents, and our total debt stood at $1.2 billion. Our debt-to-equity ratio remains healthy, providing us with the financial flexibility to pursue strategic growth initiatives and withstand potential market volatilities.
Looking ahead, we are optimistic about our growth prospects. The global steel market is expected to remain favorable, driven by continued infrastructure development, urbanization, and industrial activity. We remain focused on leveraging our competitive advantages, such as our advanced technology, efficient operations, and strong customer relationships, to capture emerging opportunities and drive sustainable growth.
We are also exploring strategic acquisitions and partnerships that align with our core business and enhance our value proposition. These initiatives will support our growth strategy and reinforce our market leadership position.
In conclusion, we are pleased with our performance in Q3 2024 and remain confident in our ability to deliver long-term value to our shareholders. Our strong financial results, combined with our strategic initiatives and commitment to sustainability, position us well for future success. We appreciate the continued support of our shareholders, customers, and employees, who are integral to our success.
We are now ready to take questions from analysts and investors. As always, we aim to provide transparent and detailed responses to your inquiries. Thank you for your attention and participation in today’s earnings call.
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