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Commercial Metals (CMC) Buys Metal Recycling Company Roane
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Commercial Metals Company (CMC - Free Report) announced that it acquired Roane Metals Group LLC, a Tennessee-based metal recycling company.
Roane operates two facilities, with a combined processing capacity of around 85,000 tons of ferrous and non-ferrous materials. The company purchases ferrous and non-ferrous scrap metal from the general public, and industrial and commercial scrap metal sellers. A large bulk of volumes is for obsolete ferrous scrap grades used by Commercial Metals’ long product mills.
The acquisition will boost Commercial Metals’ steelmaking operations' security and supply of competitively priced inputs.
The financial terms of the acquisition have not yet been disclosed.
Commercial Metals has been gaining from its acquisitions. As part of its strategic initiatives to boost growth, CMC has been active on the acquisition front.
In November 2022, Commercial Metals completed the acquisition of a Galveston area metals recycling facility and related assets from Kodiak Resources, Inc. and Kodiak Properties, L.L.C. The acquired operation annually processes approximately 55,000 tons of ferrous and non-ferrous materials, with the majority of volumes related to obsolete ferrous scrap grades consumed by Commercial Metals’ long product mills. Similar to Roane, the buyout was expected to enhance the security and supply of competitively priced inputs to the company’s steelmaking operations.
In September 2022, the company acquired Advanced Steel Recovery, LLC (ASR), a leading supplier of recycled ferrous metals in Southern California. This acquisition supports the company's strategic expansion plans in the Western United States.
In April 2022, the company acquired Tensar Corporation, which added a highly-attractive growth platform to the company. It is expected to make Commercial Metals a unique provider of value-added reinforcement solutions for the domestic and international construction markets.
After the first quarter of fiscal 2023 (ended Nov 30, 2022), Commercial Metals’ total liquidity was $1.5 billion. The company’s strong liquidity, financial position and focus on reducing debt by strategic capital allocation approach will open additional acquisition opportunities.
The company reported adjusted earnings per share of $2.24 in first-quarter fiscal 2023, beating the Zacks Consensus Estimate of $1.99. The bottom line rose 38.3% from the prior-year quarter’s earnings per share of $1.62. Net sales in the reported quarter were $2,227.3 million, up 12.4% from the year-ago quarter’s $1,981.8 million. The reported figure surpassed the Zacks Consensus Estimate of $2,164.5 million.
ArcelorMittal reported profits of $261 million or 30 cents per share in the fourth quarter of 2022 compared with $4,045 million or $3.92 per share in the year-ago quarter. Barring one-time items, earnings per share were $1.37, beating the Zacks Consensus Estimate of 33 cents. MT reported sales of $16,891 million in the quarter, down 19% year over year. The top line surpassed the Zacks Consensus Estimate of $15,621 million. MT has a four-quarter trailing average surprise of 94.4%.
Nucor delivered net earnings of $1,255.7 million or $4.89 per share in fourth-quarter 2022, down from net earnings of $2,250.4 million or $7.97 per share in the year-ago quarter. Earnings per share, however, beat the Zacks Consensus Estimate of $4.18. NUE reported net sales of $8,723.9 million, beating the Zacks Consensus Estimate of $7,910.3 million. The top line was down around 17% year over year. On average, NUE has a trailing four-quarter surprise of 7.7%.
In the fourth quarter of 2022, Steel Dynamics recorded a net income of $635 million or $3.61 per share, down 41.8% from the year-ago quarter’s $1,090.5 million or $5.49 a share. It posted adjusted earnings of $4.37 per share, down 24.4% from the year-ago quarter’s $5.78. STLD, however, surpassed the Zacks Consensus Estimate of $3.60. The company reported net sales of $4,826.2 million, which beat the Zacks Consensus Estimate of $4,732.1 million. Net sales declined 9.1% from $5,310.7 million reported in the prior-year quarter. STLD has a four-quarter trailing surprise of 11.3%, on average.
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Commercial Metals (CMC) Buys Metal Recycling Company Roane
Commercial Metals Company (CMC - Free Report) announced that it acquired Roane Metals Group LLC, a Tennessee-based metal recycling company.
Roane operates two facilities, with a combined processing capacity of around 85,000 tons of ferrous and non-ferrous materials. The company purchases ferrous and non-ferrous scrap metal from the general public, and industrial and commercial scrap metal sellers. A large bulk of volumes is for obsolete ferrous scrap grades used by Commercial Metals’ long product mills.
The acquisition will boost Commercial Metals’ steelmaking operations' security and supply of competitively priced inputs.
The financial terms of the acquisition have not yet been disclosed.
Commercial Metals has been gaining from its acquisitions. As part of its strategic initiatives to boost growth, CMC has been active on the acquisition front.
In November 2022, Commercial Metals completed the acquisition of a Galveston area metals recycling facility and related assets from Kodiak Resources, Inc. and Kodiak Properties, L.L.C. The acquired operation annually processes approximately 55,000 tons of ferrous and non-ferrous materials, with the majority of volumes related to obsolete ferrous scrap grades consumed by Commercial Metals’ long product mills. Similar to Roane, the buyout was expected to enhance the security and supply of competitively priced inputs to the company’s steelmaking operations.
In September 2022, the company acquired Advanced Steel Recovery, LLC (ASR), a leading supplier of recycled ferrous metals in Southern California. This acquisition supports the company's strategic expansion plans in the Western United States.
In April 2022, the company acquired Tensar Corporation, which added a highly-attractive growth platform to the company. It is expected to make Commercial Metals a unique provider of value-added reinforcement solutions for the domestic and international construction markets.
After the first quarter of fiscal 2023 (ended Nov 30, 2022), Commercial Metals’ total liquidity was $1.5 billion. The company’s strong liquidity, financial position and focus on reducing debt by strategic capital allocation approach will open additional acquisition opportunities.
The company reported adjusted earnings per share of $2.24 in first-quarter fiscal 2023, beating the Zacks Consensus Estimate of $1.99. The bottom line rose 38.3% from the prior-year quarter’s earnings per share of $1.62. Net sales in the reported quarter were $2,227.3 million, up 12.4% from the year-ago quarter’s $1,981.8 million. The reported figure surpassed the Zacks Consensus Estimate of $2,164.5 million.
The company, along with ArcelorMittal (MT - Free Report) , Nucor Corporation (NUE - Free Report) , and Steel Dynamics, Inc. (STLD - Free Report) , falls under the Zacks Steel Producers industry.
ArcelorMittal reported profits of $261 million or 30 cents per share in the fourth quarter of 2022 compared with $4,045 million or $3.92 per share in the year-ago quarter. Barring one-time items, earnings per share were $1.37, beating the Zacks Consensus Estimate of 33 cents. MT reported sales of $16,891 million in the quarter, down 19% year over year. The top line surpassed the Zacks Consensus Estimate of $15,621 million. MT has a four-quarter trailing average surprise of 94.4%.
Nucor delivered net earnings of $1,255.7 million or $4.89 per share in fourth-quarter 2022, down from net earnings of $2,250.4 million or $7.97 per share in the year-ago quarter. Earnings per share, however, beat the Zacks Consensus Estimate of $4.18. NUE reported net sales of $8,723.9 million, beating the Zacks Consensus Estimate of $7,910.3 million. The top line was down around 17% year over year. On average, NUE has a trailing four-quarter surprise of 7.7%.
In the fourth quarter of 2022, Steel Dynamics recorded a net income of $635 million or $3.61 per share, down 41.8% from the year-ago quarter’s $1,090.5 million or $5.49 a share. It posted adjusted earnings of $4.37 per share, down 24.4% from the year-ago quarter’s $5.78. STLD, however, surpassed the Zacks Consensus Estimate of $3.60. The company reported net sales of $4,826.2 million, which beat the Zacks Consensus Estimate of $4,732.1 million. Net sales declined 9.1% from $5,310.7 million reported in the prior-year quarter. STLD has a four-quarter trailing surprise of 11.3%, on average.