IRVING, Texas, April 24 /PRNewswire-FirstCall/ -- Commercial Metals
Company (NYSE: CMC) announced today that its board of directors declared a
two-for-one stock split in the form of a 100% stock dividend on the
Company's common stock payable May 22, 2006 to shareholders of record May
8, 2006. Each stockholder of record will receive one additional share of
CMC common stock for each share held as of the record date.
The Company also announced its intent to institute a quarterly cash
dividend of 6 cents per share on the increased number of shares resulting
from the stock dividend. In January 2006, the Company announced a 67%
increase in the cash dividend from 6 cents to 10 cents per share. After the
effect of the two-for-one stock split in the form of the 100% stock
dividend announced today, the new quarterly dividend rate of 6 cents per
share represents a doubling of the cash dividend payout within four months.
The increased cash dividend rate of 6 cents per share will be effective
with the next cash dividend declaration for the July 2006 dividend.
CMC Chairman and Chief Executive Officer Stanley A. Rabin said, "These
actions continue to reflect CMC's confidence in our near-term as well as
long- term business prospects. We remain focused on increasing shareholder
value. We believe the additional market liquidity resulting from the
increased number of shares outstanding will assist in our effort. This
second increase in the cash dividend rate within four months emphasizes our
continuing commitment to shareholders."
The two preceding paragraphs contain forward-looking statements
regarding the Company's prospects, including future financial results,
market conditions and future cash dividend policy. There is inherent risk
and uncertainty in any forward-looking statements. Variances will occur and
some could be materially different from management's current opinion.
Developments that could impact the Company's expectations include interest
rate changes, construction activity, metals pricing over which the Company
exerts little influence, increased capacity and product availability from
competing steel mills and other steel suppliers including import quantities
and pricing, court decisions, global factors including political and
military uncertainties, credit availability, currency fluctuations, energy
prices, and decisions by governments impacting the level of steel imports
and pace of overall economic activity.
Commercial Metals Company and subsidiaries manufacture, recycle and
market steel and metal products, related materials and services through a
network including steel minimills, steel fabrication and processing plants,
construction-related product warehouses, a copper tube mill, metal
recycling facilities and marketing and distribution offices in the United
States and in strategic overseas markets.
SOURCE Commercial Metals Company
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Related links:
http://www.commercialmetals.com
CONTACT:
Debbie Okle, Director, Public Relations of
Commercial Metals Company, +1-214-689-4354
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