commercial metals 12/02/05TwinsBroch
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Transcript of commercial metals 12/02/05TwinsBroch
What’s the difference?
Some people can’t tell the differencebetween CMC and other companies in our industry.
They think we’re just a steel company and all steel companies are basically the same.
all steel companies are basically the same.
But we are different. Very different.
Let’s take a closer look.
Although some may think we can
be lumped together with all the
companies in our industry, there
are important differences.
Differences in strategy, differences
in financial strength. And, finally,
differences in performance.
When you compare us to other companies in our industry,
there’s no comparison.
SO WHAT IS THEHere’s why CMC is different.
And here’s why the difference
matters to our shareholders
and to our future.
DIFFERENCE?
Focus on Long ProductsAt CMC, our steel production is primarily in long products–
such as reinforcing bars and merchant bars–that are typically
used in construction, a market that remains poised for
growth worldwide. We do not produce flat rolled products.
DiversificationUnlike other companies in the industry, CMC doesn’t just
manufacture steel, with fortunes rising or falling based
on one segment. We also manufacture copper tubing; we
process ferrous and nonferrous scrap; we have diversified
geographically, operating the second largest steel producing
plant in Poland; we operate many fabrication plants,
construction-related product warehouses, and a heat
treating plant in the U.S; and we globally market, distribute
and process primary and secondary metals and other
related raw materials and products through a global network
of marketing and distribution offices, processing facilities
and other joint ventures. CMC is a company of global
reach, with a significant presence in North America,
Europe, Asia and Australia.
Financial StrengthCMC’s sound management and commitment to being an
efficient, high-quality, low-cost producer have led to
more than a quarter century of consistent profitability and
financial stability. We are one of the very few companies
in the steel industry to have earned and maintained an
investment grade public debt rating. We have also earned
the trust of our shareholders. We have awarded quarterly
cash dividends to our investors for 164 consecutive
quarters. And we remain committed to increasing value
for our shareholders now, purchasing over three
million shares of CMC stock in 2005 and authorizing the
purchase of two million more.
WHAT TRULY MAKES CMC DIFFERENT?
CMC DIFFERENT?
PerformanceFiscal 2005 saw us achieve record net earnings, even
after the stunning records set in fiscal 2004. And record
net sales. Just two more milestones in 28 straight years
of profitability. For the full picture of the achievements of our
most recent record-setting year, see our complete annual
report or visit our website at www.commercialmetals.com.
4.8
6.6
03 04 0501 02
2.92.52.5
0
NET SALES($ b i l l ions)
0
1
2
3
4
5
6
7
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2.3
03 04 0501 02
2.3 2.4
2.21.9
CMC DOMESTICSTEEL MILLS
(tons shipped in millions)
The 5 Different Business Segments That Make Up 1 Different Company
0
300
600
900
structurals
1200
15001,342
03 04 0501 02
rebar
joists
posts
976
1,250
946948
CMC DOMESTICFABRICATION PLANTS
( tons sh i pped in thousands )
Domestic MillsComprised of four steel
minimills with a capacity of 2.4
million tons and a copper
tube mill with a capacity of 80
million pounds.
Domestic FabricationComprised of rebar and structural
fabrication plants, joist plants, a
cellular beam fabricator, fence post
manufacturing plants, a heat treating
plant and construction-related
product warehouses, with a capacity
of more than 1.4 million tons.
0
1.5
1.0
0.5
2.0
2.5
3.0
3.53.3
03 04 0501 02
2.8
3.4
2.62.3
CMC RECYCLING
(tons shipped in millions)
nonferrous
ferrous
RecyclingOne of the country’s largest
processors of nonferrous scrap
with a capacity of 530,000
tons and one of the largest
regional processors of ferrous
scrap with a capacity of 3.0
million tons.
Marketing & DistributionMarkets, distributes and processes
primary and secondary metals
and related products through a
global network of marketing and
distribution offices, processing
facilities and other joint ventures.
CMCZThe second largest steel producer
in Poland with a capacity of 1.1
million tons.
That Make Up 1 Different Company
Since 1915, Commercial Metals Company and its subsidiaries have manufactured,
recycled and marketed steel and metal products and related materials throughout a
network of locations around the world. CMC is an efficient, high-quality, low-cost producer
a
0
1
2
3
4
5
2.21
4.63
03 04 0502
0.33
0.72
DILUTED EARNINGSPER SHARE(year end)
Adjusted for January 2005 stock split.
and is one of the few steel companies with investment grade public debt ratings. CMC
has a high degree of vertical integration and is organized into five business segments:
Domestic Mills, CMCZ, Domestic Fabrication, Recycling and Marketing & Distribution.
0
4
8
12
16
7.95
15.47
95 00 0590
4.933.50
STOCKHOLDERS’EQUITY PER SHARE(year end)
Adjusted for January 2005 stock split.
6565 N. MacArthur Blvd. Suite 800 Irving, Texas 75039 Phone 214.689.4300