Commercial Metals Company Results Presentation Deck
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Strategic Growth - Mill Projects
Arizona 2
Status
Operational startup underway
Producing for commercial sale in
Q4 2023
Initial ramp-up on rebar, before
commissioning merchant
Strategic Benefits
Mill network optimization
Extension of merchant bar footprint
to West Coast
On-site optimization with original
AZ micro mill
- Leverage shared infrastructure
and staffing, improved
production planning
CMC
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Plant Highlights
First micro mill in the world capable
of both rebar and merchant bar
production in a continuous process
500k tons of capacity, including
150k tons of merchant
Outlook
Expect EBITDA breakeven during
Q1 FY 2024
Targeting FY 2024 production of
approximately 400k tons
Anticipated through-the-cycle
annual EBITDA of $70M to $80M
- Earnings at run-rate volumes
should be above expected
through-the-cycle levels within
current market conditions
CMC mills
CMC recycling
CMC fabrication
✓ CMC's mill projects are expected to provide significant
network optimization opportunities
New mill sites will enhance geographical reach and scale
within key steel consuming markets
✓ Total incremental annual through-the-cycle EBITDA is
expected in the range of $140 million to $160 million
✓ Project economics for both mills benefit from significant
capital cost offsets:
Arizona 2: sale of former California steelmaking site
Steel West Virginia: upfront incentives from state and
local agencies
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Steel West Virginia
CMC STEEL G
KLINOWA
Status
Expect groundbreaking this summer
Strategic Benefits
Network optimization across Eastern U.S.
footprint
- Improved logistics, production planning,
enhanced customer service capabilities
Plant Highlights
Strategically located to serve dense
Northeast and Mid-Atlantic markets, as
well as the Midwest
Outlook
Expect startup in calendar 2025
Anticipated through-the-cycle annual
EBITDA of $70M to $80M
Q3 FY23 Supplemental Slides | June 22, 2023
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