IRVING, Texas - Commercial Metals Company (NYSE:CMC), a global provider of steel and metal products, announced leadership changes to its Board of Directors. Barbara R. Smith will retire as Executive Chairman of the Board effective August 31, 2024. Robert S. Wetherbee, who joined the Board in March 2023, will succeed Smith as Chairman on September 1, 2024.
Peter R. Matt, President and Chief Executive Officer of Commercial Metals, expressed gratitude for Smith's significant contributions to the company's growth and innovation during her tenure. Wetherbee, expressing his honor at being appointed Chairman, anticipates building upon the foundation Smith established.
Concurrent with these changes, Sarah E. Raiss will step down as Lead Director on the same date Smith retires but will maintain her position on the Board. Matt acknowledged Raiss's strong leadership during her term as Lead Director.
The Board will also see the departure of Vicki L. Avril-Groves, who retires on August 31, 2024, after nearly a decade of service. Matt recognized her guidance and dedication to the company.
Additionally, Tandra Perkins will join the Board on September 1, 2024, contributing her experience from various leadership roles, including her current position as Senior Vice President and Chief Digital and Administrative Officer at Phillips 66 (NYSE:PSX). Perkins's background includes significant tenures at KPMG and a current board position at Chevron (NYSE:CVX) Phillips Chemical Company. She will serve on the Compensation and Finance Committees of the Board.
As part of these transitions, the Board will reduce its total number of seats from ten to nine directors. Wetherbee welcomed Perkins to the Board, highlighting her nearly 30 years of professional experience as a valuable asset.
Commercial Metals Company is known for providing innovative solutions and products for the construction sector, with a manufacturing network primarily in the United States and Central Europe. The information is based on a press release statement from Commercial Metals Company.
In other recent news, CMC has reported robust Q3 financial results with net earnings of $119.4 million, or $1.02 per diluted share, on net sales of $2.1 billion. The company is also recognized in the 2024, 2025 list of Best Companies to Work For. These are just some of the recent developments in the company's operations.
CMC's consolidated core EBITDA stands at $256.1 million, with a 12.3% margin. The company's North America Steel Group is benefiting from favorable market fundamentals, while its Europe Steel Group is showing signs of improvement, particularly in the Polish steel market. Major projects, such as the Arizona micro mill and Steel West Virginia site, are making good progress.
The company anticipates EBITDA breakeven for the Arizona micro mill in Q4 fiscal 2024 or Q1 fiscal 2025. Capital spending outlook for fiscal 2024 has been reduced to $400 million to $425 million. CMC remains optimistic about the current and future market environment, especially in construction, and is planning for capital expenditures around $600 million to $650 million for fiscal 2025.
InvestingPro Insights
Commercial Metals Company (NYSE:CMC) has been demonstrating a solid financial performance with a market capitalization of approximately $6.63 billion, reflecting its standing in the steel and metal products industry. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, stands at a reasonable 11.7, suggesting that the stock may be attractively valued relative to its earnings.
InvestingPro Tips for CMC reveal that management's confidence in the company's future is underscored by aggressive share buybacks, indicating a belief that the stock is undervalued. Furthermore, Commercial Metals has shown a commitment to shareholder returns by raising its dividend for three consecutive years, making it an attractive option for income-focused investors. On the other hand, it's worth noting that three analysts have revised their earnings estimates downwards for the upcoming period, which could be a point of consideration for potential investors.
Additional InvestingPro Tips indicate that the company has maintained dividend payments for an impressive 54 consecutive years and operates with a moderate level of debt, suggesting a stable financial position. Moreover, the company's liquid assets exceed its short-term obligations, providing further assurance of its ability to meet its financial commitments.
For a more comprehensive analysis and to access the full list of 14 InvestingPro Tips for Commercial Metals Company, interested readers can visit https://www.investing.com/pro/CMC.
InvestingPro Data Metrics:
- Market Cap (Adjusted): $6.63 billion
- P/E Ratio (Adjusted) as of Q3 2024: 11.61
- Dividend Yield as of the latest data: 1.25%
Commercial Metals Company's dedication to innovation and growth in the construction sector, combined with its sound financial strategies and shareholder-friendly policies, positions it well for the future. The leadership transitions on the Board of Directors, alongside the company's financial health, are set to guide CMC through its next phase of development.
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