Steel manufacturer and scrap metal recycler Commercial Metals (NYSE:CMC) announced today its third-quarter earnings and said it would pay a quarterly dividend of $0.12 per share, the same rate it's paid since 2008.
The board of directors said the steel company's net earnings tumbled by more than half to $19 million, or $0.16 per share, from $40.7 million, or $0.35 per share, in the year-ago quarter, as a result of weaker shipment levels of merchant and light structural products in its America mills segment. Revenues were down almost 11% as well, falling to $1.79 billion.
Although there was an improvement in most areas of the business sequentially, the year-over-year numbers could not make up for the deficiencies in the America mills division.
"We are pleased with the improved financial performance of our Americas fabrication segment recording its best adjusted operating profit since the fourth quarter of fiscal 2009," said Commercial Metals Chairman, President, and CEO Joe Alvarado. "Furthermore, the Americas fabrication segment has reported positive adjusted operating profit for four of the last five quarters."
The board said the quarterly dividend is payable on July 23 to the holders of record at the close of business on July 9. The steelmaker has made quarterly payouts to investors since 1998. The regular dividend payment equates to a $0.48-per-share annual dividend, yielding 3.5% based on the closing price of Commercial Metals' stock on June 26.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.