Commercial Metals Company Investor Presentation Deck
Europe Market Environment is Challenging
Lackluster demand and compressed margins negatively impacted fourth quarter results for CMC's Europe segment.
Demand
Manufacturing
Germany and Poland PMIs below
50 for 15 consecutive months¹
Construction
Housing units under construction
down 5% y/y²
Construction
Polish cement production
down 10% y/y²
Recent Market Developments
Supply
Long Product Production
Polish long steel production down
~13% y/y²
Long Product Imports
EU and Polish imports
down y/y³
Costs
[1] Data from S&P Global manufacturing PMI report
[2] Data from Statistics Poland for periods matching CMC's Q4 2022 and Q4 2023
[3] Data from Eurofer and Statistics Poland
Energy Costs
Natural gas purchase contracts
repriced Oct 1; will reduce cost
per ton by $15 to $20
Energy Rebates
Expect to receive $60M in rebates
as reimbursement for high energy
related costs incurred
Cost Position
CMC remains one of the lowest
cost long products producers in
Europe
Macroeconomic Backdrop
Interest Rates
Central bank has reduced rates
by 100bps since early Sep to
stimulate growth
Inflation
Inflation is down from its 2023
peak y/y change of 18.4%, but
remains high at 8.2%
Currency Valuation
Zloty has weakened against USD
and EUR, making imported steel
more expensive
Conditions are currently challenging, but green shoots and potential catalysts exist. These include a mortgage subsidy program for first-time homebuyers and the
potential release of €35 billion to Poland from the EU Recovery and Resilience fund.
CMC
CMC: Investor Overview 19View entire presentation