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| And so that sort of is more the steel in the ground but will evolve over that period of time, but it's very impressive to see the Dodge starts forecast for the current year |
| We continue to hear encouraging signs from our customers, who indicate their backlogs are in good shape and that they see a strong pipeline ahead |
| We're really pleased with the results that we've been able to generate, and we are continuing to feel really strongly about the construction outlook for, and the demand for our products that results from that |
| Compared to a year ago, the recordable incident rate for EBG has been cut in half, which equates to several injuries avoided and better outcomes for all stakeholders |
| The data for EBG and for all our operations can be seen on Slide 4 of our earnings presentation, and we are committed to further improvement on this strong record |
| We've had good success already, and we'll just continue to kind of grow that |
| As Peter mentioned, there have been some encouraging signs that the Polish market is at least that past the bottom and that supply and demand are moving into better balance |
| The dividend increase together with January's $500 million increase in CMC's share repurchase authorization shows the cash generative power of CMC's business and demonstrates our commitment to returning back cash to our shareholders |
| CMC's strong financial position and balanced capital allocation strategy allows us to prioritize returning cash to investors, while simultaneously executing our growth plan |
| As we reported in our press release issued this morning, the second quarter of fiscal 2024 was another strong period of financial performance |
| CMC generated core EBITDA and core EBITDA margin well above historic averages despite seasonal slowness and weather disruptions across much of our operational footprint |
| We continue to demonstrate the enhanced earnings and cash flow capabilities that were enabled by our recent strategic transformation and ongoing execution |
| The demand backdrop is, as I said in my prepared remarks, it's kind of a generational change from what it's been, and it's a multi-year spend that is going to put us in a good position for, I think, years to come |
| Financial performance in our Europe Steel Group segment improved from recent quarters, excluding energy rebates |
| As I noted earlier, CMC has built a tremendous safety track record but there is more that can be done to reach world class, and we are working diligently on this |
| This combined with excellent cost performance, has set us on a path toward breakeven results in the near term |
| We believe these issues are temporary and we expect a strong rebound in sales and profitability heading into the spring and summer construction season |
| As we plot CMC's future path, we are starting from a position of great strength with leading presence in each of our major products and solutions, a strong company culture, a healthy balance sheet and excellent customer relationships |
| Despite weather issues, customer order rates and inquiries were strong across the North American footprint, pointing toward good market momentum and a robust upcoming construction season |
| Controllable cost performance improved both sequentially and on a year-over-year basis as a result of lower energy pricing and operational measures taken across this footprint |
| We laid the groundwork for these efforts with our recent reporting structure changes, which greatly enhanced visibility into our key value drivers and helped us better focus our decision-making |
| The sequential improvement was driven by higher margin over scrap cost and lower controllable costs per ton, which more than offset a 20% quarter-over-quarter decline in shipments |
| The market for long steel products has come into better balance, which has allowed selling price and metal margin to increase modestly |
| I am particularly proud of the improvements made at recently acquired locations within our Engineering Business -- Emerging Businesses Group |
| We continue to expect robust spring and summer construction activity driven by increased infrastructure investments, which we anticipate will support an already strong demand backdrop in both the North America Steel Group and the Emerging Businesses Group |
| Within this environment, we expect to achieve modest metal margin expansion on steel products during the third quarter as scrap costs decrease |
| First, there is significant opportunity to optimize logistics and shorten freight lanes between our mills and final shipping points, which will lower costs and improve customer service |
| We also see achievable operational improvements through enhanced internal benchmarking and best practice sharing, which can lead to increased productivity and reduced costs and unplanned downtime |
| We believe our robust balance sheet and overall financial strength provide us the flexibility to finance our strategic organic growth projects and pursue M&A, while continuing to return cash to shareholders |
| Financial results for our Emerging Businesses Group should improve meaningfully, driven by the normal seasonal uptick in demand, strong underlying market fundamentals and a healthy order book |
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| Adjusted EBITDA also declined in CMC's Emerging Businesses Group due primarily to difficult weather conditions in the U.S |
| Results in our North American Steel Group were impacted by challenging weather conditions and some metal margin compression on steel products |
| During the quarter, California, an important end market for AZ2 experienced an historic amount of rainfall that led to a large number of lost days at construction sites across the state |
| Adjusted EBITDA for the Emerging Businesses Group of $17.9 million were down from $26.6 million in the prior year period |
| So, again, in the quarter, as we said, we had some conditions including weather and also some delays in shipments outside the U.S |
| Activity levels in our Emerging Businesses Group were hampered by weather disruptions that delayed geogrid and Geopier project starts and hit our Texas-focused CMC Construction Services, particularly hard |
| The adjusted EBITDA margin of 11.5% represented a decline from a year ago as the positive impact of the addition of CMC anchoring systems and a strong profitability from our heat treating operations were more than offset by the market factors already mentioned |
| Core EBITDA was $224.4 million for the second quarter of 2024, representing a 26% decline from the $302.8 million generated during the prior year period, but it's still a historically strong result |
| Segment adjusted EBITDA decreased 19% on a year-over-year basis, driven primarily by lower margin over scrap costs on steel and downstream products |
| Outside the U.S., several projects were also delayed during the quarter |
| Conditions in Europe are expected to remain challenging, but adjusted EBITDA is anticipated to approach breakeven levels during the third quarter |
| Our Europe Steel Group reported an adjusted EBITDA loss of $8.6 million for the second quarter of 2024 |
| But remember, at the same time, we've had a decline in some of the imports from the other areas, right |
| The outcome has been a temporary excess of rebar inventory on the West Coast |
| and project delays outside of the U.S |
| As you have no doubt read, scrap markets have softened over the last few weeks |
| that impacted us |
| We also expect the delayed Tensar projects in the global markets to begin in Q3 |
| Import pressures that influence the domestic market in late -- late in fiscal 2023 and early fiscal 2024 have largely abated and current import offers in volume terms remain fairly limited |
| I think the delays were also driven a little bit by the political situation |
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