commercial metals 12/02/05TwinsBroch


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commercial metals 12/02/05TwinsBroch

  1. 1. What’s the difference?
  2. 2. Some people can’t tell the difference between CMC and other companies in our industry.
  3. 3. They think we’re just a steel company and
  4. 4. all steel companies are basically the same.
  5. 5. But we are different. Very different.
  6. 6. Let’s take a closer look.
  7. 7. 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.
  8. 8. When you compare us to other companies in our industry,
  9. 9. there’s no comparison.
  10. 10. SO WHAT IS TH E Here’s why CMC is different. And here’s why the difference matters to our shareholders and to our future.
  11. 11. DIFFERENCE?
  12. 12. Focus on Long Products At 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.
  13. 13. Diversification Unlike 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.
  14. 14. Financial Strength CMC’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.
  16. 16. CMC DIFFERENT?
  17. 17. Performance Fiscal 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
  18. 18. NET SALES ($ billions) 7 6.6 6 4.8 5 4 2.9 3 2.5 2.5 2 1 0 0 01 02 03 04 05
  19. 19. The 5 Different Business Segments Domestic Fabrication Domestic Mills Comprised of rebar and structural Comprised of four steel fabrication plants, joist plants, a minimills with a capacity of 2.4 cellular beam fabricator, fence post million tons and a copper manufacturing plants, a heat treating tube mill with a capacity of 80 plant and construction-related million pounds. product warehouses, with a capacity of more than 1.4 million tons. CMC DOMESTIC CMC DOMESTIC FABRICATION PLANTS STEEL MILLS (tons shipped in millions) (tons shipped in thousands) 3.5 1500 1,342 1,250 3.0 1200 2.3 2.4 2.3 2.5 976 948 946 2.2 1.9 900 2.0 1.5 600 1.0 300 0.5 rebar posts 0 0 structurals joists 01 02 03 04 05 01 02 03 04 05
  20. 20. That Make Up 1 Different Company Marketing & Recycling Distribution One of the country’s largest Markets, distributes and processes processors of nonferrous scrap primary and secondary metals with a capacity of 530,000 and related products through a tons and one of the largest global network of marketing and regional processors of ferrous distribution offices, processing scrap with a capacity of 3.0 facilities and other joint ventures. million tons. CMCZ CMC RECYCLING The second largest steel producer (tons shipped in millions) in Poland with a capacity of 1.1 3.4 3.3 million tons. 3.5 3.0 2.8 2.6 2.3 2.5 2.0 1.5 1.0 0.5 ferrous 0 nonferrous 01 02 03 04 05
  21. 21. DILUTED EARNINGS PER SHARE (year end) 5 4.63 4 3 2.21 2 1 0.72 0.33 0 02 03 04 05 Adjusted for January 2005 stock split. 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
  22. 22. STOCKHOLDERS’ EQUITY PER SHARE (year end) 15.47 16 12 7.95 8 4.93 3.50 4 0 90 95 00 05 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.
  23. 23. 6565 N. MacArthur Blvd. Suite 800 Irving, Texas 75039 Phone 214.689.4300