Commercial Metals (NYSE:CMC) Struggling in Fabrication, Mills Units

Commercial Metals (NYSE:CMC) will continue to struggle in 2011, according to Goldman Sachs (NYSE:GS), citing losses in its Americas Fabrication division and International Mills division.

Goldman added, "CMC is facing additional headwinds from a slower than-expected turnaround at its Croatian mill and continued losses at the Arizona mill due to a low utilization rate. Although the non-res market appears to be approaching a bottom, we believe it is too early to become more constructive on the name, as a recovery will not likely begin before 2012."

EPS estimates for the 2nd quarter were lowered from $0.13 to $0.08, and raising the 3rd and 4th quarter estimates from $0.19/$0.32 to $0.26/$0.40.

For full year 2011 EPS estimate, that was lowered from $0.65 to $0.58.

In the second half of its fiscal 2011 margins could improve on probable increases in steel prices.

Goldman Sachs reiterates their "Sell" rating on Commercial Metals Company, which closed Monday at $16.87, up $0.28, or 1.69 percent.