COMMERCIAL METALS Co Files 10-Q for Period Ending 2024-02-29

TL;DR

<b>COMMERCIAL METALS Co filed its Q2 2024 10-Q report on March 26, 2024.</b>

AI Summary

COMMERCIAL METALS Co (CMC) filed a Quarterly Report (10-Q) with the SEC on March 26, 2024. Filing is a 10-Q for COMMERCIAL METALS Co for the period ending February 29, 2024. The filing covers the second quarter of fiscal year 2024. The company's fiscal year ends on August 31. The filing was submitted on March 26, 2024. The company's principal business is Steel Works, Blast Furnaces, and Rolling Mills.

Why It Matters

For investors and stakeholders tracking COMMERCIAL METALS Co, this filing contains several important signals. This 10-Q provides investors with an update on the company's financial performance and position for the second quarter of fiscal year 2024. Understanding the details within this filing is crucial for assessing the company's operational health and future prospects in the steel industry.

Risk Assessment

Risk Level: low — COMMERCIAL METALS Co shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain any immediate red flags or significant deviations from typical reporting.

Analyst Insight

Review the financial statements and management discussion within the 10-Q to understand the company's performance and outlook.

Key Numbers

• 2024-02-29 — Period of Report (10-Q filing period)
• 2024-03-26 — Filing Date (Date the 10-Q was filed)
• 0831 — Fiscal Year End (Company's fiscal year end date)
• 2024 Q2 — Reporting Quarter (Fiscal quarter being reported)

Key Players & Entities

• COMMERCIAL METALS Co (company) — Filer name
• 2024-02-29 (date) — Period of report
• 2024-03-26 (date) — Filed as of date
• 3312 (other) — Standard Industrial Classification
• DE (other) — State of incorporation
• IRVING (location) — Business address city
• TX (location) — Business address state
• 2146894300 (phone) — Business phone

FAQ

Industry Context

COMMERCIAL METALS Co operates in the steel manufacturing sector, specifically in steel works, blast furnaces, and rolling mills.

Regulatory Implications

The filing is a standard 10-Q report under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow.
2. Review management's discussion and analysis for insights into operational performance and future outlook.
3. Check for any new risk factors or significant changes in existing ones.

Year-Over-Year Comparison

This is the first 10-Q filing for the period ending February 29, 2024, following the previous fiscal year-end report.

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 par value CMC New York Stock Exchange

Filing Documents

• cmc-20240229.htm (10-Q) — 1529KB
• cmc-02292024xform10xqxex311.htm (EX-31.1) — 8KB
• cmc-02292024xform10xqxex312.htm (EX-31.2) — 8KB
• cmc-02292024xform10xqxex321.htm (EX-32.1) — 4KB
• cmc-02292024xform10xqxex322.htm (EX-32.2) — 4KB
• cmc-20240229_g1.jpg (GRAPHIC) — 6KB
• 0000022444-24-000069.txt (&nbsp;) — 7959KB
• cmc-20240229.xsd (EX-101.SCH) — 42KB
• cmc-20240229_cal.xml (EX-101.CAL) — 58KB
• cmc-20240229_def.xml (EX-101.DEF) — 203KB
• cmc-20240229_lab.xml (EX-101.LAB) — 573KB
• cmc-20240229_pre.xml (EX-101.PRE) — 398KB
• cmc-20240229_htm.xml (XML) — 1593KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3 Condensed Consolidated Statements of Earnings (Unaudited) - Three and six months ended February 29, 2024 and February 28, 2023 3 Condensed Consolidated Statements of Comprehensive Income (Unaudited) - Three and six months ended February 29, 2024 and February 28, 2023 4 Condensed Consolidated Balance Sheets (Unaudited) - February 29, 2024 and August 31, 2023 5 Condensed Consolidated Statements of Cash Flows (Unaudited) - Six months ended February 29, 2024 and February 28, 2023 6 Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - Three and six months ended February 29, 2024 and February 28, 2023 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 9 Note 1. Nature of Operations and Accounting Policies 9 Note 2. Changes in Business 11 Note 3. Accumulated Other Comprehensive Income (Loss) 12 Note 4. Revenue Recognition 13 Note 5. Inventories, Net 13 Note 6. Goodwill and Other Intangibles 14 Note 7. Credit Arrangements 16 Note 8. Derivatives 17 Note 9. Fair Value 18 Note 10. Stock-Based Compensation Plans 20 Note 11. Stockholders' Equity and Earnings Per Share 21 Note 12. Commitments and Contingencies 21 Note 13. Segment Information 22

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 37

— OTHER INFORMATION

PART II — OTHER INFORMATION 38

Legal Proceedings

Item 1. Legal Proceedings 38

Risk Factors

Item 1A. Risk Factors 38

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 38

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 39

Other Information

Item 5. Other Information 39

Exhibits

Item 6. Exhibits 40 Signature 41 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) Three Months Ended Six Months Ended (in thousands, except share and per share data) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Net sales $ 1,848,287 $ 2,018,003 $ 3,851,338 $ 4,245,316 Costs and operating expenses: Cost of goods sold 1,552,046 1,621,763 3,156,114 3,341,177 Selling, general and administrative expenses 167,444 150,805 329,976 307,160 Interest expense 11,878 9,945 23,634 22,990 Net costs and operating expenses 1,731,368 1,782,513 3,509,724 3,671,327 Earnings before income taxes 116,919 235,490 341,614 573,989 Income taxes 31,072 55,641 79,494 132,366 Net earnings $ 85,847 $ 179,849 $ 262,120 $ 441,623 Earnings per share: Basic $ 0.74 $ 1.53 $ 2.25 $ 3.77 Diluted 0.73 1.51 2.22 3.71 Average basic shares outstanding 116,396,530 117,224,517 116,584,235 117,249,266 Average diluted shares outstanding 117,524,113 118,723,259 118,051,249 118,985,098 See notes to condensed consolidated financial statements. 3 Table of Contents COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Net earnings $ 85,847 $ 179,849 $ 262,120 $ 441,623 Other comprehensive income (loss), net of income taxes: Foreign currency translation adjustments 1,341 11,628 24,834 53,057 Derivatives: Net unrealized holding gain (loss) ( 47,924 ) 23,957 ( 90,869 ) 92,002 Reclassification for realized gain ( 189 ) ( 863 ) ( 1,688 ) ( 7,833 ) Net unrealized gain (loss) on derivatives ( 48,113 ) 23,094 ( 92,557 ) 84,169 Defined benefit plans gain (loss) after amortization of prior service costs ( 9 ) ( 37 ) ( 18 ) 1,721 Total other comprehensive income (loss), net of income taxes ( 46,781 ) 34,685 ( 67,741 ) 138,94

View Full Filing

View this 10-Q filing on SEC EDGAR