Commercial Metals Company Corrects Fiscal 2005 Adjusted Operating Profit as Reported in Fiscal 2006 Earnings Release; Offsetting Reclassification Has No Impact on Fiscal 2005 or 2006 Consolidated Financial Results

IRVING, Texas, Oct. 25 /PRNewswire-FirstCall/ -- During yesterday's conference call reviewing 2006 fiscal year and 4th quarter financial results, Commercial Metals Company (NYSE: CMC) noted reclassification corrections to the prior fiscal year 2005 information as presented in CMC's 2006 fiscal year end earnings announcement released yesterday. The changes do not revise any fiscal year 2006 results presented in the release. The corrections make offsetting adjustments in fiscal year 2005 operating profit between two segments. Adjusted operating profit for the Domestic Mills segment for the quarter ended August 31, 2005 was corrected to $78,962,000 (increased $5,861,000) and for the year ended August 31, 2005 to $232,812,000 (increased $15,937,000). Offsetting adjustments to the Domestic Fabrication segment adjusted operating profit for the quarter ended August 31, 2005 to $19,532,000 (reduced $5,861,000) and for the year ended August 31, 2005 to $101,919,000 (reduced $15,937,000). As a result of these corrections, the Domestic Mills segment's fourth quarter adjusted operating profit for the quarter ended August 31, 2006 was 21% above last year's record fourth quarter. Adjusted operating profit for the steel minimills for the year ended August 31, 2006 was 2% less than a year earlier. Adjusted operating profit for our Domestic Fabrication segment for the quarter ended August 31, 2006 increased by 12% versus the prior year. Below is the corrected information in tabular format as presented on page 8 of the release. BUSINESS SEGMENTS (in thousands) Three months ended Fiscal year ended 8/31/06 8/31/05 8/31/06 8/31/05 Adjusted Operating Profit (Loss): Domestic Mills $95,763 $78,962 $301,113 $232,812 CMCZ 37,968 1,850 52,791 (188) Domestic Fabrication 21,787 19,532 95,999 101,919 Recycling 45,061 15,268 99,963 70,828 Marketing and Distribution 13,870 21,999 69,755 90,417 Corporate and Eliminations (9,825) (3,654) (32,367) (17,463) 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.