Commercial Metals Company (NYSE:CMC) stock fell 1.19% (As on October 14, 11:46:46 AM UTC-4, Source: Google Finance) though the company posted better than expected results for the fourth quarter of FY 22. 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.  Downstream bid volumes, a significant indicator of the construction project pipeline, increased meaningfully from a year ago, resulting in year-over-year expansion of contract backlog levels.  Demand from industrial end markets was stable, with conditions in most end-use applications unchanged from the sequential quarter, but improved compared to the prior year period. The North America segment reported adjusted EBITDA of $370.5 million for the fourth quarter of fiscal 2022, which was largely unchanged on a sequential basis, and up 75% compared to $212.0 million in the prior year period.  The year-over-year improvement was driven by record margins on steel products and a significant increase in the margin over scrap on sales of downstream products.

Moreover, the Europe segment reported adjusted EBITDA of $64.1 million for the fourth quarter of fiscal 2022, down 5% compared to adjusted EBITDA of $67.7 million for the prior year period.  Average selling price increased by $125 per ton in the fourth quarter compared to the prior year period, while the cost of scrap utilized declined $13 per ton. The result was a year-over-year increase in margin over scrap of $138 per ton. The modest year-over-year decline in adjusted EBITDA occurred despite expanded margin over scrap, primarily due to lower shipment volumes, higher costs for energy and alloys, the negative earnings impact of selling higher cost inventory, and the impact of the weakening Polish Zloty in relation to the U.S. Dollar. Further, the Company’s new Tensar business generated EBITDA of $10.2 million during the fourth quarter. Excluding a $6.5 million charge to reflect the purchase accounting effect on inventory, EBITDA amounted to $16.7 million on net sales of $74.1 million, yielding a margin of 22.5%.

CMC in the fourth quarter of FY 22 has reported the adjusted earnings per share of $2.45, beating the analysts’ estimates for the adjusted earnings per share of $2.22. The company had reported the adjusted revenue growth of 20 percent to $2.4 billion in the fourth quarter of FY 22, which is inline with the analysts’ estimates for revenue of $2.4 billion.