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Commercial Metals Company Provides Update Regarding Exit of International Marketing and Distribution Segment

Commercial Metals Company Provides Update Regarding Exit of International Marketing and Distribution Segment

PR Newswire

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

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