IRVING, Texas, Oct. 13, 2021 /PRNewswire/ -- Commercial
Metals Company (NYSE: CMC) today announced that its Board of
Directors has authorized a common stock repurchase program of up to
$350 million. This program will
cancel and replace the Company's existing plan, which had
$27 million remaining under its
authorization as of August 31,
2021.
CMC's Board of Directors also declared a regular quarterly cash
dividend of $0.14 per share of CMC
common stock, an increase of $0.02,
or 17%, per CMC common share. CMC's 228th consecutive quarterly
dividend will be paid on November 10,
2021 to stockholders of record as of the close of business
on October 27, 2021.
"Today's announcement reflects a well-balanced capital
allocation strategy that will continue to fund value-accretive
growth, while returning a meaningful portion of CMC's free cash
flow to shareholders," said Barbara R.
Smith, Chairman of the Board, President and Chief Executive
Officer. "This action was made possible by the strategic
transformation carried out over the last several years, which has
greatly enhanced our Company's earnings capability and cash flow
profile. Looking ahead, we believe CMC is well-positioned to
achieve our key strategic goals of identifying, funding and
executing on attractive growth opportunities, maintaining strong
returns over the economic cycle and providing shareholders with
attractive cash returns, while maintaining a high-quality balance
sheet."
CMC intends to repurchase shares from time to time for cash in
open market transactions or in privately-negotiated transactions in
accordance with applicable federal securities laws. The timing and
the amount of repurchases, if any, will be determined by the
Company's management based on its evaluation of market conditions,
capital allocation alternatives and other factors. The new share
repurchase program does not require the Company to acquire any
dollar amount or number of shares of CMC common stock and may be
modified, suspended, extended or terminated by the Company at any
time without prior notice.
About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture,
recycle and fabricate steel and metal products and provide related
materials and services through a network including seven electric
arc furnace ("EAF") mini mills, two EAF micro mills, one rerolling
mill, steel fabrication and processing plants, construction-related
product warehouses, and metal recycling facilities in the U.S. and
Poland.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the federal securities laws with respect to general
economic conditions, key macro-economic drivers that impact our
business, the effects of ongoing trade actions, the effects of
continued pressure on the liquidity of our customers, potential
synergies and organic growth provided by acquisitions and strategic
investments, demand for our products, metal margins, the effect of
COVID-19 and related governmental and economic responses thereto,
the ability to operate our steel mills at full capacity, future
availability and cost of supplies of raw materials and energy for
our operations, share repurchases, legal proceedings, the
undistributed earnings of our non-U.S. subsidiaries, U.S.
non-residential construction activity, international trade, capital
expenditures, our liquidity and our ability to satisfy future
liquidity requirements, estimated contractual obligations and our
expectations or beliefs concerning future events. The statements in
this release that are not historical statements, are
forward-looking statements. These forward-looking statements can
generally be identified by phrases such as we or our management
"expects," "anticipates," "believes," "estimates," "future,"
"intends," "may," "plans to," "ought," "could," "will," "should,"
"likely," "appears," "projects," "forecasts," "outlook" or other
similar words or phrases, as well as by discussions of strategy,
plans, or intentions.
Although we believe that our expectations are reasonable, we can
give no assurance that these expectations will prove to have been
correct, and actual results may vary materially. Except as required
by law, we undertake 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 any other changes. Important factors that could
cause actual results to differ materially from our expectations
include those described in Part I, Item 1A, "Risk Factors" of our
annual report on Form 10-K for the fiscal year ended August 31, 2020, and Part II, Item 1A, "Risk
Factors" of our quarterly report on Form 10-Q for the quarter ended
February 28, 2021, as well as the
following: changes in economic conditions which affect demand for
our products or construction activity generally, and the impact of
such changes on the highly cyclical steel industry; rapid and
significant changes in the price of metals, potentially impairing
our inventory values due to declines in commodity prices or
reducing the profitability of our downstream contracts due to
rising commodity pricing; impacts from COVID-19 on the economy,
demand for our products, global supply chain and on our operations,
including the responses of governmental authorities to contain
COVID-19 and the impact of various COVID-19 vaccines; excess
capacity in our industry, particularly in China, and product availability from competing
steel mills and other steel suppliers including import quantities
and pricing; compliance with and changes in existing and future
laws, regulations and other legal requirements and judicial
decisions that govern our business, including increased
environmental regulations associated with climate change and
greenhouse gas emissions; involvement in various environmental
matters that may result in fines, penalties or judgments; potential
limitations in our or our customers' abilities to access credit and
non-compliance by our customers; activity in repurchasing shares of
our common stock under our repurchase program; financial covenants
and restrictions on the operation of our business contained in
agreements governing our debt; our inability to close the sale of
our Rancho Cucamonga property, including if the buyer were to
terminate the purchase agreement during its 60 day due diligence
review period; our ability to successfully identify, consummate and
integrate acquisitions, and the effects that acquisitions may have
on our financial leverage; risks associated with acquisitions
generally, such as the inability to obtain, or delays in obtaining,
required approvals under applicable antitrust legislation and other
regulatory and third party consents and approvals; operating and
startup risks, as well as market risks associated with the
commissioning of new projects could prevent us from realizing
anticipated benefits and could result in a loss of all or a
substantial part of our investments; lower than expected future
levels of revenues and higher than expected future costs; failure
or inability to implement growth strategies in a timely manner;
impact of goodwill impairment charges; impact of long-lived asset
impairment charges; currency fluctuations; global factors, such as
trade measures, military conflicts and political uncertainties,
including the impact of the Biden administration on current trade
regulations, such as Section 232 trade tariffs and quotas, tax
legislation and other regulations which might adversely impact our
business; availability and pricing of electricity, electrodes and
natural gas for mill operations; ability to hire and retain key
executives and other employees; competition from other materials or
from competitors that have a lower cost structure or access to
greater financial resources; information technology interruptions
and breaches in security; ability to make necessary capital
expenditures; availability and pricing of raw materials and other
items over which we exert little influence, including scrap metal,
energy and insurance; unexpected equipment failures; losses or
limited potential gains due to hedging transactions; litigation
claims and settlements, court decisions, regulatory rulings and
legal compliance risks; risk of injury or death to employees,
customers or other visitors to our operations; and civil unrest,
protests and riots.
View original
content:https://www.prnewswire.com/news-releases/commercial-metals-company-announces-new-350-million-share-repurchase-program-and-17-increase-in-quarterly-dividend-301399282.html
SOURCE Commercial Metals Company