CMC Announces Changes to Segment Reporting

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Commercial Metals Company (NYSE: CMC) will implement a realigned reporting structure with three reportable segments: North America Steel Group, Europe Steel Group, and Emerging Businesses Group, to better reflect the evolving solutions offerings and the growing importance of non-steel solutions to the company's financial results and future outlook.

IRVING, Texas, Dec. 14, 2023 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) ("CMC" or the "Company") today announced that beginning with its first quarter of fiscal 2024, the Company will report financial results reflecting a realigned reporting structure, with three reportable segments: North America Steel Group, Europe Steel Group, and Emerging Businesses Group. 

• North America Steel Group is primarily composed of all recycling, steel mill, rebar fabrication, fence post fabrication, and post-tension cable operations that were previously included within the Company's former North America segment.
• Europe Steel Group is primarily composed of all recycling, steel mill, and steel fabrication operations that were previously included within the Company's former Europe segment.
• Emerging Businesses Group is composed of the Company's Tensar^® geogrid and Geopier^®, CMC Construction Services™, Performance Reinforcing Steel, CMC Anchoring Systems, and Impact Metals™ operations.  These were previously reported as part of the Company's former North America segment, with the exception of geogrid operations located outside of North America, which were included within the Company's former Europe segment.
• The Company's reporting for Corporate and Eliminations is unchanged.

Peter R. Matt, President and Chief Executive Officer, said, "Our realigned reporting structure better reflects how we view our operations and manage our Company, and provides important insights into the factors that drive value creation and the role of each segment within CMC's strategy and future growth plans."

The realignment of CMC's operating segment structure corresponds directly to recent structural changes made within the organization.  The decision to adjust segment reporting was made to better reflect: (i) the evolution of the Company's solutions offerings outside of traditional steel products, (ii) the growing importance of non-steel solutions to CMC's financial results and future outlook, and (iii) the Company's chief operating decision maker's approach to performance assessment, strategic decision-making, and the allocation of capital resources.

The announced realignment impacts only the Company's segment reporting, and does not affect CMC's previous consolidated results. Operational and financial statistics for fiscal years 2022 and 2023 under the new reporting structure can be found on pages 3 and 4 of this release.

For additional resources outlining the announced changes, please follow this link (https://ir.cmc.com/ir-toolkit), or visit our Investor Relations website at cmc.com/investors.

About CMC
CMC is an innovative solutions provider helping build a stronger, safer, and more sustainable world. Through an extensive manufacturing network principally located in the United States and Central Europe, we offer products and technologies to meet the critical reinforcement needs of the global construction sector. CMC's solutions support construction across a wide variety of applications, including infrastructure, non-residential, residential, industrial, and energy generation and transmission.

COMMERCIAL METALS COMPANY FINANCIAL & OPERATING STATISTICS (UNAUDITED)
		Three Months Ended
(in thousands, except per ton amounts)		8/31/2023		5/31/2023		2/28/2023		11/30/2022		8/31/2022		5/31/2022		2/28/2022		11/30/2021
North America Steel Group
Net sales from external customers		$  1,717,979		$  1,818,391		$  1,503,774		$  1,664,161		$  1,821,993		$  1,894,928		$  1,518,644		$  1,562,840
Adjusted EBITDA		336,843		367,561		274,240		349,787		343,054		357,010		523,771		258,832
External tons shipped
Raw materials		344		409		321		316		359		353		329		334
Rebar		542		539		425		461		451		505		407		442
Merchant bar and other		215		249		235		243		249		274		244		257
Steel products		757		788		660		704		700	—	779	—	651		699
Downstream products		387		382		315		382		433		399		327		400
Average selling price per ton
Raw materials		$         838		$          833		$         868		$          824		$          950		$      1,207		$      1,103		$      1,034
Steel products		932		979		985		1,020		1,104		1,110		1,041		976
Downstream products		1,428		1,452		1,421		1,399		1,348		1,244		1,169		1,092
Cost of raw materials per ton		$         606		$          619		$         639		$          598		$          717		$         908		$          834		$         766
Cost of ferrous scrap utilized per ton		$         338		$          384		$         346		$          325		$          387		$         472		$          436		$         428
Steel products metal margin per ton		$         594		$          595		$         639		$          695		$          717		$         638		$          605		$         548
Europe Steel Group
Net sales from external customers		$  273,961		$  330,767		$  337,560		$  386,503		$  393,858		$  474,523		$  395,349		$  328,562
Adjusted EBITDA		(30,081)		5,837		11,469		61,248		63,580		120,098		81,149		79,832
External tons shipped
Rebar		151		146		183		204		177		170		172		103
Merchant bar and other		238		283		253		269		251		306		278		262
Steel products		389		429		436		473		428		476		450		365
Average selling price per ton
Steel products		$         682		$          753		$         756		$          792		$          888		$         967		$          851		$         869
Cost of ferrous scrap utilized per ton		$         398		$          427		$         389		$          366		$          435		$         530		$          444		$         434
Steel products metal margin per ton		$         284		$          326		$         367		$          426		$          453		$         437		$          407		$         435
Emerging Businesses Group
Net sales from external customers		$  208,559		$  189,055		$  153,598		$  170,534		$  191,459		$  147,695		$    95,580		$    90,782
Adjusted EBITDA		42,612		38,395		26,551		31,427		27,978		23,221		11,692		9,692

 

COMMERCIAL METALS COMPANY FINANCIAL & OPERATING STATISTICS (UNAUDITED)
		Twelve Months Ended August 31,
(in thousands, except per ton amounts)		2023		2022
North America Steel Group
Net sales from external customers		$                        6,704,305		$                        6,798,405
Adjusted EBITDA		1,328,431		1,482,667
External tons shipped
Raw materials		1,390		1,375
Rebar		1,967		1,805
Merchant bar and other		942		1,024
Steel products		2,909		2,829
Downstream products		1,466		1,559
Average selling price per ton
Raw materials		$                                   840		$                               1,073
Steel products		977		1,059
Downstream products		1,425		1,218
Cost of raw materials per ton		$                                   615		$                                   807
Cost of ferrous scrap utilized per ton		$                                   349		$                                   431
Steel products metal margin per ton		$                                   628		$                                   628
Europe Steel Group
Net sales from external customers		$                        1,328,791		$                        1,592,292
Adjusted EBITDA		48,473		344,659
External tons shipped
Rebar		684		622
Merchant bar and other		1,043		1,097
Steel products		1,727		1,719
Average selling price per ton
Steel products		$                                   749		$                                   896
Cost of ferrous scrap utilized per ton		$                                   395		$                                   463
Steel products metal margin per ton		$                                   354		$                                   433
Emerging Businesses Group
Net sales from external customers		$                           721,746		$                           525,516
Adjusted EBITDA		138,985		72,583

 

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SOURCE Commercial Metals Company

FAQ

What is the ticker symbol of Commercial Metals Company?

The ticker symbol of Commercial Metals Company is CMC.

What are the new reportable segments of Commercial Metals Company?

The new reportable segments are North America Steel Group, Europe Steel Group, and Emerging Businesses Group.

Why did Commercial Metals Company realign its reporting structure?

The realignment was done to better reflect the evolving solutions offerings outside of traditional steel products and the growing importance of non-steel solutions to the company's financial results and future outlook.

Where can I find operational and financial statistics for fiscal years 2022 and 2023 under the new reporting structure?

Operational and financial statistics can be found on pages 3 and 4 of the press release.

What is the CEO's statement regarding the realigned reporting structure?

Peter R. Matt, President and Chief Executive Officer, stated that the realigned reporting structure better reflects how the company views its operations and manages the company, providing important insights into the factors that drive value creation and the role of each segment within CMC's strategy and future growth plans.