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About Commercial Metals Company (CMC)
Commercial Metals Company (CMC) is a global leader in the steel and metals industry, specializing in the recycling, manufacturing, and fabrication of steel products. With over a century of expertise, CMC has established itself as a key player in providing sustainable and innovative solutions to meet the critical reinforcement needs of the construction sector. The company operates through three primary segments: the North America Steel Group, the Europe Steel Group, and the Emerging Businesses Group, each contributing to its vertically integrated business model.
Core Business Operations
CMC’s operations span the entire steel production lifecycle, from metal recycling to finished steel products. Its extensive network includes steel mills, fabrication plants, and recycling facilities, primarily located in the United States and Central Europe. The company's flagship products, such as rebar, merchant bar quality (MBQ) steel, and structural steel, are integral to infrastructure, non-residential, and residential construction projects.
CMC is a pioneer in adopting cutting-edge technology, exemplified by its innovative micro mill facilities. These state-of-the-art mills, including the Arizona 2 plant, are designed to enhance efficiency, reduce waste, and produce high-quality steel products with a lower environmental footprint. This aligns with the company’s commitment to sustainability and environmental responsibility.
Market Position and Industry Significance
Operating in a highly cyclical industry, CMC has positioned itself as a resilient and adaptive organization. Its strategic focus on vertical integration allows the company to control costs, optimize production, and maintain competitive pricing. The company’s recycling operations not only provide a steady supply of raw materials but also contribute to reducing environmental impact, making CMC a leader in sustainable steel production.
In North America, CMC benefits from robust demand driven by infrastructure investments and manufacturing reshoring trends. Its downstream operations, which fabricate steel into ready-to-use components, add value by catering to specific customer needs. In Europe, the company is navigating challenging market conditions through cost management and supply chain optimization, particularly in Poland where demand is stabilizing.
Strategic Initiatives
To drive long-term growth and operational excellence, CMC has launched its Transform, Advance, Grow (TAG) program. This enterprise-wide initiative focuses on enhancing efficiency, lowering costs, and capturing commercial opportunities. Early results indicate strong potential for achieving higher through-the-cycle margins and solidifying CMC’s competitive edge.
Additionally, the company continues to invest in expanding its manufacturing capabilities. Projects like the West Virginia micro mill, slated for completion in late 2025, underscore CMC’s commitment to innovation and meeting future demand. These investments are expected to capitalize on favorable structural trends, such as increased infrastructure spending and energy transition projects.
Commitment to Sustainability and Safety
CMC is deeply committed to sustainability, with its recycling operations playing a pivotal role in reducing waste and conserving natural resources. The company’s steel products are made with a high percentage of recycled content, aligning with global efforts to reduce carbon emissions. Moreover, employee safety remains a top priority, with record safety performance achieved in recent years.
Challenges and Opportunities
While CMC faces challenges such as fluctuating raw material prices, geopolitical uncertainties, and regulatory pressures, its strategic initiatives and diversified operations position it well to navigate these hurdles. The company’s focus on innovation, sustainability, and customer-centric solutions ensures its relevance in a competitive and evolving industry.
Conclusion
Commercial Metals Company is more than a steel manufacturer; it is a solutions provider dedicated to building a stronger, safer, and more sustainable world. With a robust business model, innovative technologies, and a commitment to excellence, CMC continues to play a vital role in shaping the future of the global construction and steel industries.
Commercial Metals Company (NYSE: CMC) announced with deep sadness the passing of Richard B. "Rick" Kelson on February 13, 2021. Kelson served on the Board of Directors for eleven years, including five years as lead director, and was recognized for his exceptional leadership and guidance. Barbara Smith, CMC's CEO, expressed condolences to Kelson's family. Known for his extensive career at Alcoa and various board roles, Kelson's impact on CMC will be remembered. In his honor, CMC will donate to the Penn Center for Research on Coronavirus.
Commercial Metals Company (NYSE: CMC) announced the results of its cash Tender Offer for all outstanding 5.750% Senior Notes due 2026, with a deadline of February 16, 2021. As of February 1, 2021, $77.77 million in notes were tendered. The company also completed a $300 million offering of 3.875% Senior Notes due 2031 to fund this tender. The early settlement date is set for February 3, 2021. Any remaining notes not repurchased in the tender will be redeemed on February 19, 2021. The tender offer is subject to specific conditions outlined in the Offer to Purchase.
Commercial Metals Company (NYSE: CMC) announced the sale of $300 million in 3.875% Senior Notes due 2031. The offering is expected to close around February 2, 2021, pending standard conditions. Proceeds will be used alongside cash on hand for a tender offer for outstanding 5.750% Senior Notes due 2026 and to redeem any remaining notes post-offer. Citigroup is leading the underwriting of the offering, which is conducted under an SEC registration statement. The announcement includes forward-looking statements regarding the offering and market conditions affecting operations.
Commercial Metals Company (CMC) announced a proposed offering of $300 million in senior notes as part of an underwritten public offering. The funds will be used to finance a tender offer for its existing 5.750% senior notes due 2026 and to redeem any notes not repurchased. Citigroup and other financial institutions are managing the offering under an effective registration statement with the SEC. The tender offer and redemption are conditional and detailed in the company’s official documents. CMC operates in steel and metal manufacturing across the U.S. and Poland.
Commercial Metals Company (NYSE: CMC) announced a cash tender offer for its outstanding 5.750% Senior Notes due 2026. The offer expires on February 16, 2021, with an early tender deadline on February 1, 2021. Holders can receive total consideration of $1,037.50 per $1,000 principal for notes tendered early. The tender offer is contingent on completing a satisfactory financing transaction. A conditional notice of full redemption will also be issued for any remaining 2026 Notes. This press release is not a recommendation to tender the notes.
Commercial Metals Company (NYSE: CMC) reported fiscal Q1 2021 earnings of $63.9 million, or $0.53 per share, on net sales of $1.4 billion, down from $82.8 million or $0.69 per share in the same period last year. After accounting for $5.9 million in charges, adjusted earnings were $69.8 million, or $0.58 per share. The North America segment saw adjusted EBITDA drop to $155.6 million from $174.7 million due to rising scrap costs, despite a 2% increase in rebar shipments. The company maintains a strong liquidity position with $465.2 million in cash.
Commercial Metals Company (CMC) has declared a quarterly cash dividend of $0.12 per share, marking its 225th consecutive quarterly dividend. The dividend is payable to shareholders of record by the close of business on January 21, 2021, with payment scheduled for February 4, 2021. This regular dividend reflects the company's ongoing commitment to returning value to shareholders while maintaining its strong financial position.
Commercial Metals Company (NYSE: CMC) announced that CMC Steel Arizona has started receiving renewable energy from the Salt River Project's new "Saint Solar" plant in Arizona. This partnership is part of SRP's Sustainable Energy program, initiated in 2018. CMC Steel Arizona, utilizing scrap-based Electric Arc Furnace technology, is recognized as one of the most efficient steel mills globally, using 98% recycled material and significantly lowering emissions. Additionally, CMC plans to build its third micro mill, AZ2, featuring advanced technology to enhance energy efficiency.
Commercial Metals Company (NYSE: CMC) is set to release its first-quarter earnings for fiscal 2021 on January 11, 2021, at 11:00 a.m. ET. The event will feature insights from Barbara Smith, Chairman, President & CEO, and Paul Lawrence, Vice President & CFO. Interested parties can access the teleconference via webcast on the company’s official website. CMC specializes in manufacturing, recycling, and fabricating steel and metal products across the U.S. and Poland, operating a diverse range of mills and facilities.
Commercial Metals Company (CMC) announced its fiscal fourth quarter and annual results for 2020, reporting earnings from continuing operations of $67.8 million, or $0.56 per diluted share, down from $85.9 million, or $0.72 per diluted share, in the previous year. Full-year earnings increased to $278.3 million, or $2.31 per diluted share. Net after-tax charges for the quarter were $27.5 million. The company declared a quarterly dividend of $0.12 per share. Adjusted EBITDA for North America reached $174.2 million, while Europe reported $22.9 million, boosted by carbon credits. CMC anticipates seasonal trends affecting future volumes.
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