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Commercial Metals fiscal 3Q net income tumbles

IRVING, Texas (AP) -- Commercial Metals Co. said Thursday its fiscal third-quarter net income fell by more than half, hurt by lower demand for its merchant and light structural products.

The company, which makes, recycles and markets steel and metal products, as well as related materials and services, earned $19 million, or 16 cents per share, for the three months ended May 31. That compared with a profit of $40.7 million, or 35 cents per share, in the same quarter a year ago.

Revenue fell 11 percent to $1.79 billion from $2.01 billion.

The results fell short of Wall Street predictions. Analysts, on average, expected a profit of 18 cents per share on $1.92 billion in revenue, according to FactSet.

Commercial Metals said a modest improvement in rebar shipments was more than offset by weaker shipment levels of merchant and light structural products, resulting in lower profitability at its Americas Mills business.

The company said it expects its operational results for the fourth quarter to be similar to those of the third, noting that while non-residential construction in the U.S. has shown some signs of improvement, it still isn't showing signs of a broader recovery. It added that it expects European markets to continue to lag those of the rest of the world.

Commercial Metals shares closed Wednesday at $13.89, down 6.5 percent since the start of the year. The stock has changed hands between $11.45 and $17.47 in the past 52 weeks.