PR Newswire | Oct 1, 2020 06:45AM EDT

10/01 05:45 CDT

Commercial Metals Company Announces Changes To Segment Reporting IRVING, Texas, Oct. 1, 2020

IRVING, Texas, Oct. 1, 2020 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) today announced that beginning with its fourth quarter of fiscal 2020, the Company realigned its reporting structure to include two operating segments: North America and Europe.

* North America comprises the Company's former Americas Recycling, Americas Mills, and Americas Fabrication business segments. * Europe comprises the Company's former International Mill segment, with no other changes. * Corporate and Eliminations will continue to be reported separately from operating segments.

The decision to realign CMC's operating segment structure was made to reflect: (i) its vertically integrated operating model in North America, which is now supported by a National Sales, Inventory and Operations Planning function created in fiscal 2020, (ii) changes to its operating model and geographic footprint following the full integration of the rebar assets acquired in fiscal 2019 into its North America operations, and (iii) the way management now uses the integrated North America data to manage the business, assess performance, and allocate resources.

Operational and financial statistics for fiscal years 2020 and 2019 can be found on pages 2 and 3 of this release. The announced realignment impacts only the Company's segment reporting, and results in no change in CMC's previously reported consolidated results.

Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, said, "We believe our realigned reporting structure better reflects the way we manage our company and the economics of our vertically integrated operations, giving better insight into how CMC creates value."

For additional resources outlining the announced changes, as well as definitions related to our restated operational statistics, please follow this link ( https://ir.cmc.com/ir-toolkit), or visit our Investor Relations website at cmc.com/investors.

About Commercial Metals Company

Commercial Metals Company and its subsidiaries manufacture, recycle and fabricate steel and metal products, related materials and services through a network of facilities that includes seven electric arc furnace ("EAF") mini mills, two EAF micro mills, two rerolling mills, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the U.S. and Poland.

COMMERCIAL METALS COMPANY FINANCIAL & OPERATING STATISTICS (UNAUDITED)

Three Months Ended

(in thousands, except per ton amounts)5/31/2020 2/29/2020 11/30/20198/31/2019 5/31/2019 2/28/2019 11/30/2018

North America

Net sales $1,167,0811,161,2831,216,7201,333,0141,394,3311,225,3611,048,410

Adjusted EBITDA $159,394 152,831 174,732 152,450 146,228 74,761 82,857

External tons shipped

Raw materials 288 321 320 399 433 406 424

Rebar 463 461 475 474 485 470 297

Merchant and other 211 238 236 237 248 256 232

Steel products 674 699 711 711 733 726 529

Downstream products 427 366 413 448 469 396 319

Average selling price per ton

Raw materials $517 595 547 535 558 579 580

Steel products $624 625 626 659 686 688 695

Downstream products $966 984 976 963 925 845 868

Cost of raw materials per ton $348 435 392 383 402 414 424

Cost of ferrous scrap utilized per ton$239 256 226 246 284 303 307

Steel products metal margin per ton $385 369 400 413 402 385 388



Europe

Net sales $173,817 180,079 165,389 205,461 209,365 175,198 227,024

Adjusted EBITDA $14,270 13,451 11,359 22,666 24,120 20,537 32,779

External tons shipped

Rebar 122 145 122 151 126 66 80

Merchant and other 252 235 216 237 250 238 312

Steel products 374 380 338 388 376 304 392

Average selling price per ton

Steel products $437 449 461 500 524 545 547

Cost of ferrous scrap utilized per ton$239 251 244 265 288 301 295

Steel products metal margin per ton $198 198 217 235 236 244 252

COMMERCIAL METALS COMPANY FINANCIAL & OPERATING STATISTICS (UNAUDITED)

Nine Months Ended May 31,Twelve Months Ended August 31,

(in thousands, except per ton amounts)2020 2019 2018

North America

Net sales $3,545,084 5,001,116 3,738,493

Adjusted EBITDA $486,957 456,296 323,993

External tons shipped

Raw materials 929 1,662 1,877

Rebar 1,399 1,726 798

Merchant and other 685 973 910

Steel products 2,084 2,699 1,708

Downstream products 1,206 1,632 1,114

Average selling price per ton

Raw materials $555 563 615

Steel products $625 681 640

Downstream products $976 905 800

Cost of raw materials per ton $393 406 460

Cost of ferrous scrap utilized per ton$238 284 303

Steel products metal margin per ton $387 397 337



Europe

Net sales $519,285 817,048 887,038

Adjusted EBITDA $39,080 100,102 131,720

External tons shipped

Rebar 389 423 459

Merchant and other 703 1,037 1,041

Steel products 1,092 1,460 1,500

Average selling price per ton

Steel products $449 528 560

Cost of ferrous scrap utilized per ton$245 288 314

Steel products metal margin per ton $204 240 246

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SOURCE Commercial Metals Company