IRVING,
Texas, Nov. 5, 2024 /PRNewswire/ -- Commercial
Metals Company (NYSE: CMC) today issued a statement in
response to the jury verdict reached in the Pacific Steel Group v.
Commercial Metals Co. (N.D. Cal.) litigation. Pacific Steel Group
("Pacific Steel") filed this lawsuit claiming, among other things,
various restraints on trade by CMC. A trial on Pacific
Steel's claims began on October 21st
and concluded today with a verdict in favor of Pacific Steel in the
amount of $110 million, which will be
trebled as a matter of law, plus attorneys' fees. We are very
disappointed by the outcome, and plan to appeal the verdict.
CMC stands by the strong integrity of its business practices and
will vigorously defend its position.
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 press release contains
forward-looking statements within the meaning of the federal
securities laws with respect to CMC's plans to appeal the verdict
and defend its position. 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, 2024 as well as the
following: the timing and the final outcome of the litigation,
including the success of any potential appellate proceedings by
CMC; entry of a final judgment by the court in the litigation;
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 geopolitical conditions, including
political turmoil and volatility, regional conflicts, terrorism and
war 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,
environmental justice or regulatory 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; 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 Commercial Metals Company
