CMC modifies financial reporting segments

Irving, Texas-based CMC has announced that beginning with the first quarter of its 2024 fiscal year, it will report financial results reflecting a realigned reporting structure, with three reportable segments: North America Steel Group, Europe Steel Group and Emerging Businesses Group.

The company makes recycled-content steel, predominantly in the United States, but with one mill in Europe, operates scrap processing facilities and trading offices in the U.S. and Europe and has several subsidiaries offering products to the U.S. and European construction and civil engineering sectors.

In the new accounting structure, the North America Steel Group will consist of all recycling, steel mill, rebar fabrication, fence post fabrication and post tension cable operations that were previously included within the company’s former North America segment.

The CMC Europe Steel Group will consist of its recycling, steel mill and steel fabrication that previously had been included within its Europe segment.

The newly created Emerging Businesses Group, according to CMC comprises the company’s Tensar Geogrid and Geopier, CMC Construction Services, Performance Reinforcing Steel, CMC Anchoring Systems and Impact Metals operations.

Results from those business units previously had been reported as part of the company’s former North America segment, with the exception of geogrid operations located outside of North America, which were included within the company’s former Europe segment.

“Our realigned reporting structure better reflects how we view our operations and manage our company, and provides important insights into the factors that drive value creation and the role of each segment within CMC’s strategy and future growth plans,” says Peter R. Matt, president and CEO of CMC.

The 2024 fiscal year for CMC began Sept. 1, with the first quarter running through the end of November. The company will announce its first results under the new alignment early next January, with an earnings conference call scheduled for Jan. 8, 2024.

According to CMC, the realignment to its financial reporting was made to better reflect the evolution of the company’s solutions offerings outside of traditional steel products; the growing importance of nonsteel solutions to CMC’s financial results and future outlook; and the company’s chief operating decision-makers’ approach to performance assessment, strategic decision-making and the allocation of capital resources.

The announced realignment impacts are not retroactive, CMC says, and do not affect any of the company’s previous results.