Commercial Metals Company Exits Joist and Deck Business

Commercial Metals Company (CMC; Irving, TX) has decided to exit the joist and deck business by way of sale and/or closure of those facilities.

Since April 2007, the company has manufactured the United Steel Deck brand of metal roof deck, composite floor deck, floor form deck and related gage metal accessories. CMC has joist manufacturing plants in Hope, AR; Starke, FL; Iowa Falls, IA; Juarez, MX; Fallon, NV; New Columbia, PA and Eastover, SC. The company has deck manufacturing facilities in Peru, IL; So. Plainfield, NJ and Rock Hill, SC.

Murray R. McClean, chairman, president and chief executive officer, said, "We continue to review our product lines, geographic dispersion, and vertical integration consistent with our strategic plan to determine the best allocation of resources for the company. The outlook for joist consumption in the North American markets is weak. This product line has suffered low demand, depressed prices, and shrinking margins ? all leading to unacceptable losses. By exiting this business, we believe the capital invested in these operations will be better deployed in our other downstream fabricating operations.?

Estimates of costs and losses, the majority of which will be impairments on fixed assets and intangibles, are being developed and depend on a range of factors including, but not limited to, valuations upon sale of the business as a going concern or by individual property, plant, and equipment. The company's management expects to complete its evaluation within the next two weeks. The company?s management currently estimates that the costs and the after-tax losses to be recorded in the second fiscal quarter may range from $35 to $50 million.

Commercial Metals Company and its 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 international markets.

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www.cmc.com