Commercial Metals Company (NYSE:CMC) stock rose 1.02% (As on June 17, 11:15:10 AM UTC-4, Source: Google Finance) after the company posted better than expected result for the third quarter of FY 22. Commercial Metals also said it was anticipating upbeat financial performance for the current quarter amid a strong construction market. Net earnings were $312.4 million compared to prior year period net earnings of $130.4 million. Demand for CMC’s finished steel products in North America was again robust during the quarter, with several key internal and external indicators pointing toward continued strength. The North America segment reported adjusted EBITDA of $379.4 million for the third quarter of fiscal 2022, an increase of 83% compared to $207.3 million in the prior year period. The average selling price for steel products increased by $316 per ton compared to the third quarter of fiscal 2021, while the cost of scrap utilized rose $103 per ton. The result was a year-over-year increase of $213 per ton in margin over scrap. The average selling price for downstream products increased by $281 per ton from the prior year period and $75 per ton on a sequential basis. The Europe segment reported record adjusted EBITDA of $121.0 million for the third quarter of fiscal 2022, up 142% compared to adjusted EBITDA of $50.0 million for the prior year quarter. The improvement was driven by a significant expansion in both shipment volume and margin over scrap. The Company’s new Tensar business generated EBITDA of $4.9 million during its first five weeks as part of CMC.

CMC in the third quarter of FY 22 has reported the adjusted earnings per share of $2.61, beating the analysts’ estimates for the adjusted earnings per share of $2.02. The company had reported the adjusted revenue of $2.52 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $2.4 billion.

Additionally, cash and cash equivalents ended the quarter with a balance of $410.3 million, following a $550 million payment, net of cash acquired, to complete the purchase of Tensar. In addition, $624.3 million remained available under the Company’s credit and accounts receivable facilities. CMC repurchased approximately one million shares of common stock during the quarter, returning $38.6 million of cash to shareholders. As of May 31, 2022, $294.4 million remained under the current share repurchase authorization. The company has declared a quarterly dividend of $0.14 per share of CMC common stock payable to stockholders of record on June 179, 2022.