Revenue during the quarter grew 12.74 percent to $1,149.62 million from $1,019.70 million in the previous year period. Gross margin for the quarter expanded 63 basis points over the previous year period to 13.85 percent. Total expenses were 95.47 percent of quarterly revenues, down from 95.99 percent for the same period last year. This has led to an improvement of 52 basis points in operating margin to 4.53 percent.

Operating income for the quarter was $52.07 million, compared with $40.90 million in the previous year period.

However, the adjusted operating income for the quarter stood at $52.27 million compared to $29.97 million in the prior year period. At the same time, adjusted operating margin improved 161 basis points in the quarter to 4.55 percent from 2.94 percent in the last year period.

Joe Alvarado, chairman of the Board and chief executive officer, commented, "After a slow start in our first fiscal quarter, customers re-entered the market during the most recent quarter with a renewed outlook and optimism for growth. This, combined with mild winter conditions in the United States along with rising selling prices, resulted in very strong results for our second quarter which is normally a seasonally slower period. The value of our vertical integration was evident during the quarter as the impact of margin compression in our fabrication operations was offset by sharply rising scrap prices contributing to margin expansion in our recycling business."

The company has spent $93.92 million cash to meet investing activities during the first six months as against cash outgo of $108.52 million in the last year period. It has incurred net capital expenditure of $90.11 million on net basis during the first six months, up 51.76 percent or $30.73 million from year ago period.

The company has spent $39.27 million cash to carry out financing activities during the first six months as against cash outgo of $326.75 million in the last year period.

Cash and cash equivalents stood at $395.55 million as on Feb. 28, 2017, up 3.63 percent or $13.87 million from $381.68 million on Feb. 29, 2016.

Working capital declines
Commercial Metals Company has witnessed a decline in the working capital over the last year. It stood at $1,146.92 million as at Feb. 28, 2017, down 24.99 percent or $382.20 million from $1,529.12 million on Feb. 29, 2016. Current ratio was at 2.37 as on Feb. 28, 2017, down from 4.39 on Feb. 29, 2016.

Cash conversion cycle (CCC) has decreased to 66 days for the quarter from 117 days for the last year period. Days sales outstanding went down to 58 days for the quarter compared with 62 days for the same period last year.

Days inventory outstanding has decreased to 33 days for the quarter compared with 80 days for the previous year period. At the same time, days payable outstanding was almost stable at 26 days for the quarter, when compared with the previous year period.