CMC(US:CMC)2025-01-06 12:44Financial Performance - First quarter net loss of $175.7 million, or $1.54 per diluted share, on net sales of $1.9 billion, compared to net earnings of $176.3 million, or $1.49 per diluted share, on net sales of $2.0 billion in the prior year [2]. - Adjusted earnings for the first quarter were $88.5 million, or $0.78 per diluted share, down from $176.3 million, or $1.49 per diluted share, in the prior year [3]. - The company incurred a litigation expense of $350,000,000 during the quarter, significantly impacting net earnings, which resulted in a loss of $175,718,000 [24]. - Net earnings for the first quarter of fiscal 2025 were a loss of $175,718, compared to a profit of $176,273 in the same period last year [27]. - Adjusted EBITDA for the quarter was $(149,541), a significant decrease from $305,637 in Q1 2024 [31]. - Core EBITDA was $210,691, with a core EBITDA margin of 11.0%, down from 15.7% in the previous year [31]. - Net sales for the quarter were $1,909,602, a decrease from $2,003,051 in Q1 2024 [31]. Segment Performance - Consolidated core EBITDA was $210.7 million with a core EBITDA margin of 11.0% [5]. - Adjusted EBITDA for the North America Steel Group decreased to $188.2 million, with a margin decline from 16.8% to 12.4% year-over-year [8]. - The Europe Steel Group reported adjusted EBITDA of $25.8 million, including a $44.1 million CO2 credit; excluding this credit, results deteriorated due to high import volumes [10]. - Emerging Businesses Group net sales decreased by 4.4% to $169.4 million, with adjusted EBITDA down 26.6% year-over-year [11]. - The Europe Steel Group reported a net sales of $209,407,000, with an adjusted EBITDA of $25,839,000, compared to a loss of $8,611,000 in the previous year [23]. - The Emerging Businesses Group achieved net sales of $169,415,000, with an adjusted EBITDA margin of 13.4%, down from 21.7% in the previous quarter [23]. Cash Flow and Liquidity - Cash flow from operating activities was $213.0 million, equal to 101% of consolidated core EBITDA, with $71.0 million returned to shareholders through dividends and share buybacks [5]. - The company maintains a strong balance sheet with cash and cash equivalents totaling $856.1 million and available liquidity of nearly $1.7 billion [6]. - Cash and cash equivalents remained stable at $856,104,000, slightly down from $857,922,000 in the previous quarter [26]. - The company reported a cash flow from operating activities of $213,024, down from $261,060 in the same quarter last year [27]. Sales and Pricing - North America finished steel shipment volumes increased by 4.4% year-over-year, although margins were pressured by declines in average steel pricing [7]. - Average selling price per ton for steel products in North America was $812, down from $892 in the same quarter last year [23]. - Total net sales to external customers for the three months ended November 30, 2024, were $1,909,602,000, a decrease of 4.7% from $2,003,051,000 in the same period last year [24]. Future Outlook - The company expects consolidated financial results in the second quarter of fiscal 2025 to decline from the first quarter level, with adjusted EBITDA margins anticipated to decrease sequentially [13]. Capital Expenditures - Capital expenditures increased to $118,187, compared to $66,991 in the same period last year [27]. Dividends - The company declared cash dividends per share of $0.18, up from $0.16 in the same period last year [24]. - The company paid $20,554 in dividends, an increase from $18,748 in the previous year [27]. Assets and Liabilities - Total current assets decreased to $3,218,123,000 from $3,292,768,000 in the previous quarter [26]. - Total liabilities increased to $2,757,102,000, compared to $2,517,815,000 in the previous quarter, primarily due to accrued contingent litigation-related losses [26]. - Cash and cash equivalents at the end of the period were $856,888, down from $707,106 a year ago [27]. Interest Expense - Interest expense for the quarter was $11,322, slightly up from $11,756 in Q1 2024 [31].