IRVING,
Texas, Jan. 10, 2024 /PRNewswire/ -- Commercial
Metals Company (NYSE: CMC) (the "Company" or "CMC") today announced
that its Board of Directors has authorized an increase of
$500 million to the Company's
existing common stock repurchase program, bringing the aggregate
capacity of the program to $850
million. Approximately $310
million of the Company's common stock has been repurchased
under the existing program since its authorization in October
2021.
"Today's announcement reflects a well-balanced capital
allocation strategy that is supported by CMC's strong earnings
capability and cash flow profile," said Peter R. Matt, President and Chief Executive
Officer. "Our Company's excellent financial position provides
the ability to continue to fund value-accretive growth, while
returning a meaningful portion of CMC's free cash flow to
shareholders."
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, including Rule
10b5-1 programs. 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 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's Board of Directors at any time without prior
notice.
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.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the federal securities laws with respect to the
Company's capital allocation strategy and plans to repurchase
shares of common stock under the authorized share repurchase
program. 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.
The Company's forward-looking statements are based on
management's expectations and beliefs as of the time this news
release was prepared. 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 our filings with the
Securities and Exchange Commission, including, but not limited to,
in Part I, Item 1A, "Risk Factors" of our annual report on Form
10-K for the fiscal year ended August 31, 2023, 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 downstream contracts within our
vertically integrated steel operations due to rising commodity
pricing; excess capacity in our industry, particularly in
China, and product availability
from competing steel mills and other steel suppliers including
import quantities and pricing; the impact of the Russian invasion
of Ukraine on the global economy,
inflation, energy supplies and raw materials; increased attention
to environmental, social and governance ("ESG") matters, including
any targets or other ESG or environmental justice initiatives;
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; impacts from global public
health crises on the economy, demand for our products, global
supply chain and on our operations; 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; evolving
remediation technology, changing regulations, possible third-party
contributions, the inherent uncertainties of the estimation process
and other factors that may impact amounts accrued for environmental
liabilities; potential limitations in our or our customers'
abilities to access credit and non-compliance with their
contractual obligations, including payment obligations; activity in
repurchasing shares of our common stock under our share repurchase
program; financial and non-financial covenants and restrictions on
the operation of our business contained in agreements governing our
debt; our ability to successfully identify, consummate and
integrate acquisitions and realize any or all of the anticipated
synergies or other benefits of acquisitions; 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; lower than expected future levels of revenues and
higher than expected future costs; failure or inability to
implement growth strategies in a timely manner; the impact of
goodwill or other indefinite-lived intangible asset impairment
charges; the impact of long-lived asset impairment charges;
currency fluctuations; global factors, such as trade measures,
military conflicts and political uncertainties, including changes
to 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; our ability to hire
and retain key executives and other employees; our ability to
successfully execute leadership transitions; 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; our 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.
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SOURCE CMC