Commercial Metals Company (NYSE:CMC) stock rose 0.11% (As on Jan 11, 12:07:21 AM UTC-4, Source: Google Finance) after the company posted mixed result for the first quarter of FY 22. The company has reported net income of $232.9 million for the three months ended Nov. 30, up from $64.1 million a year earlier. As of the end of the quarter, the company had cash and cash equivalents of $415.1 million, and availability of $659.3 million under credit and accounts receivable facilities. The company had increased costs for freight, energy, and steelmaking consumables weighed on margins modestly, but higher prices benefitted the company’s earnings. Core EBITDA reached record levels for the third consecutive quarter, surpassing our previous record by 28% and totaled nearly $1.0 billion on a trailing 12-month basis. The company has made strong progress in site preparation and construction of the future Arizona 2 micro mill, and the company anticipates its operational startup will coincide with strong incremental demand created by the recently passed Infrastructure Investment and Jobs Act.  The new micro mill, CMC’s fourth, will enhance our position in the Eastern U.S. and create meaningful synergies within the existing network of mills and downstream fabrication plants. Further, the agreement to acquire Tensar Corporation, a leading provider of innovative sub-grade reinforcement solutions, will significantly extend CMC’s growth runway and create an unparalleled provider of reinforcement solutions to the domestic and international construction markets.

Moreover, the North America segment generated record adjusted EBITDA of $268.5 million for the first quarter of fiscal 2022, an increase of 73% compared to $155.6 million in the prior year period.  This improvement was driven by increased margins for steel products and raw materials. The  growth in CMC’s construction backlog drove a year-over-year increase in downstream shipment volumes, marking the first such increase in eight quarters.

CMC in the first quarter of FY 22 has reported the adjusted earnings per share of $1.62, beating the analysts’ estimates for the adjusted earnings per share of $1.23, according to analysts polled by FactSet. The company had reported the adjusted revenue of $1.98 billion in the first quarter of FY 22, missing the analysts’ estimates for revenue of $2.06 billion.

Additionally, the company has declared a quarterly dividend of $0.14 per share of CMC common stock payable to stockholders of record on January 20, 2022.