Commercial Metals Company announced Wednesday financial results for its fourth quarter and year ended August 31, 2013. Net earnings for the fourth quarter ended August 31, 2013 were $4.1 million, or $0.03 per diluted share, on net sales of $1.7 billion. This compares to net earnings of $30.2 million, or $0.26 per diluted share, on net sales of $1.8 billion for the three months ended August 31, 2012. Net earnings for the fourth quarter of 2013 included asset impairment charges related to Australian operations of $25.9 million, or $0.22 per diluted share. For the year ended August 31, 2013, net earnings were $77.3 million or $0.66 per diluted share on net sales of $6.9 billion; this compares to net earnings of $207.5 million or $1.78 per diluted share on net sales of $7.7 billion for the year ended August 31, 2012.
Joe Alvarado, Chairman of the Board, President, and CEO, commented, "We are proud to report our eighth consecutive quarter of positive earnings. We took action in the fourth quarter to strengthen our Australian operations which we believe will yield benefits in the coming quarters. Furthermore, our commitment to focus on our core operations is evidenced by the previously announced sale of our copper tube manufacturing operation, Howell Metal Company."
The company's Americas Recycling segment recorded an adjusted operating loss of $6.7 million for the fourth quarter of this fiscal year, compared with an adjusted operating profit of $8.3 million in the prior year's fourth quarter. LIFO income for the segment decreased $2.8 million to $1.3 million in the fourth quarter of 2013, from $4.1 million in the fourth quarter of 2012. Ferrous volumes, selling prices and margins were all slightly higher during this year's fourth quarter. However, these increases were not enough to overcome declines in nonferrous volumes and pricing resulting in a $51/ton decline in nonferrous margins. In addition, we recognized a $2.0 million loss on a long-term supply contract with a customer during the fourth quarter of 2013.
The Americas Mills segment recorded an adjusted operating profit of $58.4 million for the fourth quarter of 2013, compared with an adjusted operating profit of $63.0 million in the fourth quarter of 2012. This segment's volumes were lower by 7 percent while metal margins declined 2 percent in the fourth quarter of 2013. LIFO income for the segment decreased $12.1 million to $7.4 million in the fourth quarter of 2013, from $19.5 million in the fourth quarter of 2012. In comparison to the sequential quarter, adjusted operating profit improved by 26 percent primarily as a result of higher shipments.
The Americas Fabrication segment recorded an adjusted operating profit of $8.2 million for the fourth quarter of 2013, marking a significant improvement over the prior year's fourth quarter adjusted operating profit of $1.5 million. These results were achieved despite a $2.9 million decrease in LIFO income for the segment when compared to the fourth quarter of 2012. This segment continued to experience margin expansion as input pricing declined while transactional selling prices improved when compared to the fourth quarter of 2012. Bid activity and bookings were also better in the fourth quarter of 2013 when compared to a year ago, resulting in a stronger backlog as we enter fiscal 2014.
The International Mill segment recorded an adjusted operating profit of $8.0 million for the fourth quarter of 2013, compared with an adjusted operating profit of $5.4 million in the prior year's fourth quarter. These results were also a substantial improvement over the adjusted operating loss of $3.8 million reported in the third quarter of 2013. Total shipments in the fourth quarter of 2013 fell 12 percent while metal margins expanded 7 percent when compared to the same quarter in 2012. Market conditions in Europe continued to be soft, with certain countries showing marginal signs of improvement. On a positive note, the effects of the value-added tax (VAT) circumvention schemes that have recently negatively impacted this segment should subside as the long-awaited legislation in Poland went into effect on October 1, 2013.
Net earnings from continuing operations for fiscal year 2013 were $75.0 million, or $0.64 per diluted share. For the year ended August 31, 2013, cash flow from operations was $147.7 million and adjusted EBITDA from continuing operations was $353.5 million. After-tax LIFO income from continuing operations for fiscal 2013 was $34.4 million ($0.29 per diluted share), compared to after-tax LIFO income of $27.1 million ($0.23 per diluted share) in fiscal 2012. As of August 31, 2013, cash and short-term investments totaled $378.8 million, an increase of 44 percent from the end of our 2012 fiscal year.
Earnings from discontinued operations for fiscal year 2013 were $2.4 million, which primarily consisted of earnings related to the copper tube business.
Alvarado concluded, "We are encouraged by our ability to post another positive earnings quarter and strong cash flows even after factoring in restructuring charges recorded in our fiscal 2013 fourth quarter. From a U.S. perspective, we are further encouraged by the strength of the Architecture Billings Index (ABI), posting a 53.8 for August, the highest mark since February 2013. In addition, the ABI has been above 50 for 12 of the last 13 months which historically has been a good leading indicator of improved non-residential construction. Our International Mill segment should see an improvement in margins in light of the newly-passed legislation to curb VAT circumvention arrangements in Poland."
