What: Shares of steel company Commercial Metals Company (NYSE:CMC) fell as much as 14% in early trading today after it reported fiscal fourth-quarter earnings.

So what: Net sales plunged 23% from a year ago to $1.41 billion, and as a result, the company swung to a loss of $5.8 million, or $0.05 per share. Adjusted for one-time items, the company said it earned $0.25 per share, but that was still well short of the $0.43 per share Wall Street expected.  

Now what: What's strange is that management said nonresidential construction spending is up 24% this year, and that's its biggest end-use market. But it's losing business because of a high level of imports from China at low costs that are making recycling less attractive. Given these headwinds, which could last for a long time, I don't see much upside in buying shares today. The company's loss and declines in demand are more than I'm willing to overlook, and it could be a long time before imports aren't a drag on the business overall.

Travis Hoium 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.