IRVING, Texas, Sept. 8, 2017 /PRNewswire/ -- On August 31, 2017, Commercial Metals Company (NYSE:
CMC) (the "Company"), announced the completion of the
sale of its raw materials trading division, CMC Cometals, for U.S.
$179 million, subject to customary
post-closing adjustment.
The sale of CMC Cometals is the first step in the Company's plan
to exit the International Marketing and Distribution segment, which
was announced on June 13, 2017.
CMC Cometals will be reflected in the Company's statement of
earnings as a discontinued operation beginning in the fourth
quarter of fiscal 2017.
The Company is continuing to work towards an exit of the
remaining businesses of the International Marketing and
Distribution segment. Depending upon a number of factors, the
Company currently estimates that it will record pre-tax, non-cash
charges associated with the entire exit plan in the fourth quarter
of 2017 in the range of $30 to $35
million as well as approximately $5
million in cash charges.
In addition, the Company's fourth quarter results will include
pre-tax net expense of $16 million
related to the previously announced cash tender offer and
redemption of its 7.35% Senior Notes due 2018, as well as
approximately $10 million in expense
associated with severance costs.
Barbara Smith, President and
Chief Executive Officer, commented, "These actions position us well
to enter our new fiscal year of 2018 with a focus on our core
manufacturing operations in the United
States and Poland, as well
as reducing interest expense by approximately $22 million year over year."
About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture,
recycle and market steel and metal products, related materials and
services through a network including steel minimills, steel
fabrication and processing plants, construction-related product
warehouses, metal recycling facilities and marketing and
distribution offices in the United
States and in strategic international markets.
Forward-Looking Statements
Statements in this press release about the Company's estimated
charges related to its exit from the International Marketing and
Distribution segment as well as severance costs and expenses
related to its cash tender offer and debt redemption constitute
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
as amended. These and any other forward-looking statements in this
press release generally can be identified by phrases such as we,
the Company, CMC or its management expects, anticipates, believes,
estimates, intends, plans to, ought, could, will, should, likely,
appears or other similar words or phrases. There are inherent risks
and uncertainties in any forward-looking statements. Although the
Company believes that its estimates and expectations are
reasonable, the Company can give no assurance that these estimates
and expectations will prove to have been correct, and actual
results may vary materially. Except as required by law, the Company
undertakes no obligation to update, amend or clarify any
forward-looking statements to reflect changed assumptions, the
occurrence of anticipated or unanticipated events, new information
or circumstances or otherwise.
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SOURCE Commercial Metals Company