US longs producer and metals recycler Commercial Metal Company (CMC) saw a boost to its fiscal first quarter earnings, largely due to the on-going uptick in the global construction sector, Kallanish learns from a company announcement.

CMC’s earnings in the quarter ended 30 November totaled $36.8 million on sales of $1.2 billion, up from fiscal Q1 2017 earnings of $6.3m on sales of $1 billion.

"We delivered strong financial results during our first fiscal quarter of 2018,” says ceo Barbara Smith. “In both the Americas mills and international mill segments, demand from the construction sector remained robust, which resulted in very good earnings. In fact, the Polish operations recorded the highest quarterly profits since 2008. The America's Recycling segment also had the highest quarterly results since 2012 supported by rising non-ferrous pricing and a continued strong demand for ferrous material."

Fiscal Q2 earnings are likely to be a little subdued due to seasonal factors, though the company’s core interests remain strong, Smith adds.

"During our second quarter we normally experience lower shipment levels due to winter weather conditions impairing construction activity as well as a reduced number of shipping days,” Smith says. “However, we see strength in the underlying market fundamentals supporting each of our segments as we enter calendar 2018. End markets in both non-residential construction and original equipment manufacturers are forecasting growth and we are seeing that reflected in our shipment volumes."

CMC recently signed a $600m deal with Brazilian company Gerdau for four minimills and 33 rebar fabrication facilities in the US.