Irving Based Commercial Metals Posts 2Q Profit On Higher Volume
IRVING (AP) – Commercial Metals Co., which resisted a takeover bid from billionaire Carl Icahn last year, posted a profit on Wednesday for its fiscal second quarter after shipping more steel and recycled metal products.
CEO and President Joe Alvarado said that most operations saw higher volumes and sale prices than in the year-ago quarter.
Alvarado also said that he expects scrap prices to remain stable during the fiscal third quarter and is optimistic about “strong backlogs” for domestic operations. Backlogs in the international segment were higher than they were a year ago, he said.
The company said its net income rose to $28.9 million, or 25 cents, in the three months ended Feb. 29. That compared with a net loss of $46.2 million, or 40 cents a share, in the year ago quarter. Revenue rose to $1.96 billion from $1.78 billion a year ago.
Analysts surveyed by FactSet had predicted earnings of 9 cents a share on revenue of $1.98 billion.
Icahn launched a hostile takeover bid of $15 per share for Commercial Metals last year. His investment company had amassed a nearly 10 percent stake by July. Days after his stake was revealed, the company adopted a poison pill to defend itself against a hostile bid.
Icahn ended his attempt in January after failing to win over shareholders. Icahn Enterprises Holdings LP’s bid attracted tenders of only about 23 percent of the company’s shares by the deadline, which fell short of Icahn’s 40.1 percent goal.
Shares of the Irving, Texas, company rose 15 cents to $14.55 in afternoon trading Wednesday. They have traded in a range of $8.64 to $17.84 per share.
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