Commercial Metals Company (CMC) filed Annual Report for the period ended 2009-08-31.
Commercial Metals Company has three segments - manufacturing recycling and marketing and trading. Activities are primarily concerned with metals related activities. The manufacturing segment is the dominant and most rapidly expanding segment in terms of assets employed capital expenditures operating profit and number of employees. The recycling segment is engaged in processing secondary or scrap metals for further recycling into new metal products. The marketing and trading segment buys and sells primary and secondary metals and fabricated metals. Commercial Metals Company has a market cap of $1.67 billion; its shares were traded at around $14.84 with a P/E ratio of 17.6 and P/S ratio of 0.2. The dividend yield of Commercial Metals Company stocks is 3.2%. Commercial Metals Company had an annual average earning growth of 22.6% over the past 10 years.
Highlight of Business Operations:
“The aggregate market value of the common stock on February 27, 2009, held by non-affiliates of the registrant, based on the closing price of $10.21 per share on February 27, 2009, on the New York Stock Exchange was approximately $1,122,561,086. (For purposes of determination of this amount, only directors, executive officers and 10% or greater stockholders have been deemed affiliates.)”
No single customer purchases 10% or more of our Americas Mills segment’s production. Due to the nature of certain stock products we sell in the Americas Mills segment, we do not have a long lead time between receipt of a purchase order and delivery. We generally fill orders for stock products from inventory or with products near completion. As a result, we do not believe that backlog levels are a significant factor in the evaluation of these operations. Backlog for our four steel minimills at August 31, 2009 was approximately $142 million as compared to $311 million at August 31, 2008. The Arizona micro mill was not yet fully commissioned as of this date.
Backlog in our steel fabrication operations was approximately $621 million at August 31, 2009 as compared to $784 million at August 31, 2008. Other backlogs in the Americas Fabrication and Distribution segment are not considered material. No single customer accounts for 10% or more of our Americas Fabrication and Distribution segment’s sales.
During 2009 we had two significant expansions underway at CMCZ. Installation of a new wire rod block at a cost of approximately $40 million which was completed in the second quarter of fiscal 2009. This addition has increased capacity approximately 110,000 tons and enhanced CMCZ’s product range. We also began installation of a new rolling mill at an estimated cost of $190 million. The new mill, designed to allow efficient and flexible production of an increased medium section product range, will complement the facility’s existing rolling mill dedicated primarily to rebar production. The new mill will have a rolling capacity of approximately 716,000 tons of rebar, merchant bar and wire rod. The first phase of the new mill is expected to be completed during the first quarter of fiscal year 2010 while the second phase is expected to be completed at the end of fiscal year 2010 or during fiscal year 2011, and is in addition to CMCZ’s two existing rolling mills.
CMC is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, John Keeley of Keeley Fund Management.
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