Commercial Metals Company Reports Loss of $0.32 EPS for Second Quarter

IRVING, Texas, March 24 /PRNewswire-FirstCall/ -- Commercial Metals Company
(NYSE: CMC) today reported a net loss of $35.3 million or $0.32 per share on
net sales of $1.6 billion for the quarter ended February 28, 2009. This
compares with net earnings of $39.8 million or $0.34 per diluted share on net
sales of $2.3 billion for the second quarter last year. This year's second
quarter included after-tax LIFO income of $80.7 million or $0.72 per share
compared with expense of $38.3 million or $0.32 per diluted share in last
year's second quarter. LIFO is an inventory costing method that assumes the
most recent inventory purchases or goods manufactured are sold first which in
periods of declining prices results in income that eliminates the effect of
deflation from operating results. Changes in LIFO are not write downs or write
offs or market adjustments. They are changes in cost components based on an
assumption of physical inventory flows.

Net earnings for the six months ended February 28, 2009, were $26.7 million or
$0.23 per diluted share on net sales of $4.0 billion. For the same period last
year, net earnings were $108.9 million or $0.91 per diluted share on net sales
of $4.4 billion. For the six months ended February 28, 2009, after-tax LIFO
income was $154.6 million or $1.36 per diluted share, compared with an expense
of $35.5 million or $0.30 per diluted share last year.

In response to price declines, demand destruction, and a global liquidity and
credit crisis, the Company recorded the following consolidated expenses during
the second quarter:
-- Lower of cost or market inventory adjustments of $61.3 million
-- Other charges relating to contractual noncompliance exposures,
environmental, and discontinued operations of $15.6 million
-- Bad debt expense of $14.6 million
-- Severance costs of $6.5 million
-- Impairment charges of $5.1 million

Selling, general and administrative expenses in the second quarter included
$14.6 million of costs associated with the investment in the global deployment
of SAP software compared to $14.7 million in last year's second quarter;
project to date we have expensed $116.0 million. Other SAP costs of $100.2
million have been capitalized since inception of the project, of which $6.5
million was capitalized in the current quarter.

General Conditions

CMC Chairman, President and Chief Executive Officer Murray R. McClean said,
"The deterioration of global steel markets continued during the quarter,
reaching Eastern and Central Europe and Australia, our last markets of
relative strength. Volumes, pricing, and margins all declined from the first
quarter as destocking continued and demand remained weak. China had a bit of a
false start as inventory built at stockists and distributors in anticipation
of improving demand after the Chinese New Year which did not materialize.
Only our Americas Mills and Americas Fabrication and Distribution segments
fared better this quarter than the comparable second quarter of last year.
Lower prices and lower inventory quantities triggered LIFO income during the
quarter which mitigated a substantial amount of inventory revaluation. Our
largest commercial exposures continue to be unwarranted contract
cancellations, market claims, price renegotiations, and unexpected inventory
positions."

Americas Recycling
McClean said, "Ferrous scrap markets appear to have bottomed during November
2008. Ferrous volumes and pricing fell dramatically from the second quarter of
last year leading to a significant operating loss. Nonferrous scrap markets
followed a similar pattern as last year. Ferrous prices, overall, recovered
during the quarter, but at a very modest pace and starting from a very low
level. Copper prices rose during the quarter, but aluminum declined. The
adjusted operating loss of $36.2 million continued the reversal of results
from the previous strong year; the segment had an adjusted operating profit of
$25.6 million in the second quarter of last year. Pre-tax LIFO income of $8.6
million ($5.0 million of LIFO expense in last year's quarter) took the edge
off falling inventory values. The average ferrous scrap sales price for the
second quarter was $162 per short ton, a 44% decline from last year's second
quarter. Nonferrous pricing fared worse with an average sales price of $1,294
per short ton, a drop of 53%. Shipments of ferrous scrap fell to levels not
seen since the first quarter of 2004; we shipped 435 thousand tons, a 42%
decline from the second quarter of last year. Nonferrous shipments totaled 38
thousand tons, a 47% drop from last year. We exported 31% of our nonferrous
scrap tonnage during the quarter."

Americas Mills
"In an otherwise uninspiring environment," according to McClean, "we are proud
that our number one priority for our employees, safety, has been recognized
once again. CMC Steel Alabama was named by the Steel Manufacturer's
Association as the safest steel mill in North America in 2008. This is the
seventh year in a row one of CMC's mills has won the award, each mill having
won at least once.

"The trend of declining prices and shipments which began in the first quarter
continued into the second. We adjusted our production and inventory to meet
the reduced market demand. Our Americas Mills segment earned adjusted
operating profit of $73.1 million compared to $55.3 million in the comparable
quarter last year. The decline in prices and quantities in inventory led to
pre-tax LIFO income of $52.6 million, compared to $18.2 million of pre-tax
LIFO expense last year."

McClean added, "Our steel mills ran at 55% of capacity for the quarter with
those with greater rebar capacity running higher and those with more merchant
products capacity running lower. Sales revenues declined as both prices and
shipments were lower than the second quarter of last year. Our steel mills
adjusted operating profit of $71.1 million was up 40% compared to the prior
year second quarter; pre-tax LIFO income was $42.4 million compared to the
prior year second quarter pre-tax LIFO expense of $19 million. Our metal
margin at $450 per ton was 38% above the second quarter of last year and only
2% down from the first quarter; however, lower production volumes caused
conversion costs per ton to rise eroding some of this positive effect. The
price of ferrous scrap consumed at the mills during the quarter fell 29%
compared to last year's second quarter. Our average selling price of $656 was
up $39 per ton, while the average selling price for finished goods was up $19
per ton to $676. Sales volumes declined 38% to 391 thousand tons. Continuing
the trend in the first quarter, we shipped more rebar than merchant products;
rebar accounted for 58% of tonnage shipped and merchant products 42%. The
price premium of merchant bar over reinforcing bar averaged $257 per ton. On a
quarter-to-quarter basis, tonnage melted for the second quarter was down 42%
to 336 thousand tons while tonnage rolled declined 37% to 318 thousand tons.
Lower production rates resulted in overall decreases in electrode, alloys, and
energy costs.

"Our copper tube mill reported an adjusted operating profit of $2.0 million,
down substantially from $4.4 million in the second quarter of last year. The
mill recorded pre-tax LIFO income of $10.2 million during the quarter compared
to pre-tax LIFO income of $800 thousand in the prior year. Sales statistics
now include the effects of expanding our product line to include steel tubing
sold as complimentary products. Total pounds shipped fell 28% to 10.4 million
pounds (of which 657 thousand pounds was steel). The average copper selling
price declined $1.40 per pound to $2.43 per pound; metal spreads declined 40
cents. The cost of copper scrap decreased $1.53 per pound to $1.55 per pound.
Copper tube production decreased 26% to 9.5 million pounds compared to last
year's second quarter."

Americas Fabrication and Distribution
McClean said, "Our Americas Fabrication & Distribution segment reported
adjusted operating profit of $17.0 million compared to last year's loss of
$7.6 million. Results were aided by pre-tax LIFO income of $46.7 million
whereas the prior year was burdened by rapidly escalating steel prices causing
a pre-tax LIFO expense of $35.2 million. The quarter was not without its
challenges. The weaker economy has customers suffering from lack of liquidity,
spot prices declining, and the volume of new work for bidding waning, all
leading to increased competition. For the segment, this resulted in increased
bad debt expense, lower of cost or market adjustments on inventory, impairment
charges, and severance costs. The composite average fab selling price
(excluding stock and buyouts) increased 22% to $1,243 per ton compared to the
same quarter last year. Rebar shipments increased during the quarter, but only
due to new acquisitions. Rebar, structural, and construction services were
profitable, but post and joist & deck incurred losses. Joist continues to
suffer the greatest downturn. Our domestic steel import and distribution
business was unprofitable as unwarranted contract cancellations, market
claims, price renegotiations, and the liquidation of unexpected inventory
positions took a huge toll."

International Mills
McClean said, "Continuing deteriorating international financial conditions
evidenced by declining prices and volumes in Poland, a strengthening U.S.
dollar, a harsh winter and our continued losses in Croatia resulted in an
adjusted operating loss of $24.3 million for this segment compared to a $9.7
million profit in the second quarter of last year. Central and Eastern Europe
were one of the last areas to feel the full brunt of the global economic
meltdown, but they have now been clearly affected. The region was impacted by
huge currency movements; the Polish zloty lost 23% to the Euro and 26% to the
U.S. dollar in the second quarter. This would normally lead to export
opportunities such as our profitable billet sales last year, but international
steel markets are not currently open to imports. CMC Poland had an adjusted
operating loss of $11.2 million. Shipments totaled 237 thousand tons (9
thousand tons of billets) compared to 403 thousand tons (81 thousand tons of
billets). For the second quarter, tons melted were 244 thousand tons compared
to 385 thousand tons last year, and tons rolled were 226 thousand tons
compared to 308 thousand tons in the prior year. Average selling prices
increased 4% to PLN 1,471 per ton compared to PLN 1,414. The cost of purchased
scrap entering production decreased 16%. The average metal margin increased to
PLN 629 from PLN 589.

"Our adjusted operating loss in Croatia for the second quarter was $13.1
million. This included lower of cost or market adjustments to inventory and an
impairment charge as we decided to exit the cold processing business. After
the end of the quarter, we successfully trialed new sizes and shapes of
billets from our melt shop improvement project. This is the first phase to be
followed by the installation of a newer furnace scheduled to be online by the
end of the calendar year. During the quarter, we melted 7 thousand tons
(production was lower due to construction and natural gas curtailment), rolled
13 thousand tons, and shipped 15 thousand tons."

International Fabrication and Distribution
McClean added, "The reduced demand in steel markets, continually lower prices
leading to inventory valuation adjustments, and customer contractual
noncompliance led this segment to its first operating loss in decades. Though
global inventories are not excessive, destocking continues and customers are
living hand to mouth, a buying pattern detrimental to the lead times inherent
in distribution. The segment incurred an adjusted operating loss of $11.8
million. Our last strong market, Australia, succumbed to the worldwide
recession during the quarter. The segment suffered from lower of cost or
market adjustments on inventory and accruals on contract losses. The only
positive notes for the segment were raw materials distribution and some
selective Asian businesses. Our fab shops in Poland and Germany incurred a
loss by writedowns of inventory and customer contract withdrawals."

Financial Condition
McClean said, "As the global liquidity crisis prolongs, balance sheet quality
and strength, liquidity, and headroom on debt covenants carry heightened
importance. Our inventories are conservatively valued on LIFO (at February 28,
2009 the reserve was $324.5 million) and a substantial amount of our accounts
receivable are credit insured or backed by letters of credit. Nonetheless, in
this period of economic volatility, increased measures of caution are
warranted, and we increased our allowance for doubtful accounts during the
quarter. CMC has as low a percentage of goodwill and intangible assets to
total assets as any domestic competitor. At February 28, 2009, goodwill and
intangibles totaled $147.3 million, representing only 4% of total assets. We
have substantially all our $400 million revolver available in the form of
either commercial paper or bank borrowings (only $26.9 million of letters of
credit outstanding against it at February 28, 2009). No amounts were
outstanding against our $200 million accounts receivable securitization
program at February 28, 2009. We retired $100 million of long-term debt during
the quarter and at quarter end had short-term cash investments of $81.2
million. No long-term debt payments are now due until 2013. We have two debt
covenants - a debt/capital ratio test and an EBITDA to interest coverage test.
The maximum debt/capital ratio is 60%; at February 28, 2009, CMC was 44%. We
are required to keep a twelve month rolling average EBITDA to interest
coverage of 2.5 times; for the twelve months ended February 28, 2009, we had
coverage of 6.0 times.

"The effective tax rate for the quarter and six month period varies
significantly from the statutory rate due to lower tax rate jurisdictions
(predominantly international) incurring losses, profits earned in states with
income taxes, and the effect of permanent differences having a greater effect
at lower levels of pre-tax income."

Outlook
McClean said, "It will be rough going for the balance of our fiscal year and
likely for the remainder of calendar 2009. There are no sustainable catalysts
absent solving the global liquidity crisis. The spring construction season
will bring an up tick in volumes, but this will be clearly seasonal and not an
indication of recovery. The effects of the U.S. stimulus package will not be
felt until late in calendar 2009 and even then expected to be modest. Other
countries' efforts are likely to be mixed; we are most encouraged by the focus
of the Chinese programs on infrastructure.

"Our efforts will be directed at cash generation through working capital
management and cost containment. We intend to maintain our strong balance
sheet and leave our revolving credit and accounts receivable securitization
programs unused and fully available. Our major capital projects - Arizona
micro mill, Polish flexible mill, Croatian melt shop, and SAP - will be
substantially complete this fiscal year.

"We wish we could be more hopeful and encouraging in the short term, but there
remains a lack of confidence among most of our end-use markets. Backlogs
continue to decrease, and it is likely that metal margins will contract in the
third quarter, though still at historically good levels. LIFO will continue to
act as a buffer if prices deteriorate. We estimate that our Americas steel
mills will likely operate at 50% to 60% of capacity with highway markets in
the five state Texas region still decent, but weakness on both coasts. It is
becoming increasingly difficult to project results in a global economic
environment lacking confidence, with dysfunctional credit markets, and the
uncertain impact of government stimulus programs. With less certainty in our
ability to estimate than in the past, we would anticipate a third quarter
loss, but at lower levels than the second quarter."

Conference Call
CMC invites you to listen to a live broadcast of its second quarter 2009
conference call on Tuesday, March 24, at 11:00 a.m. ET. The call will be
hosted by Murray McClean, Chairman, President and CEO, and Bill Larson, Senior
Vice President and CFO, and can be accessed via our website at www.cmc.com or
at www.streetevents.com. In the event you are unable to listen to the live
broadcast, the call will be archived and available for replay within two hours
of the web cast. Financial and statistical information presented in the
broadcast can be found on CMC's website under "Investor Relations."

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 international markets.

Forward-Looking Statements
The Outlook section of this news release contains forward-looking statements
regarding the outlook for the Company's financial results including net
earnings, economic conditions, credit availability, product pricing and
demand, production rates, inventory levels, and general market conditions.
These forward-looking statements generally can be identified by phrases such
as the company or its management "expect," "anticipates," "believe," "ought,"
"should," "likely," "appears," "projected," "forecast," "outlook," "will" or
other words or phrases of similar impact. There is inherent risk and
uncertainty in any forward-looking statements. Variances will occur and some
could be materially different from management's current opinion. Developments
that could impact the Company's expectations include the success or failure of
government efforts to stimulate the economy including restoring credit
availability and confidence in a recovery, construction activity, difficulties
or delays in the execution of construction contracts resulting in cost
overruns or contract disputes, metals pricing over which the Company exerts
little influence, interest rate changes, increased capacity and product
availability from competing steel minimills and other steel suppliers
including import quantities and pricing, court decisions, industry
consolidation or changes in production capacity or utilization, the ability to
integrate acquisitions into operations; global factors including political and
military uncertainties, currency fluctuations, energy and supply prices and
decisions by governments impacting the level of steel imports and pace of
overall economic activity, particularly China.

Three months ended Six months Ended
(Short Tons in Thousands) 2/28/09 2/29/08 2/28/09 2/29/08

Domestic Steel Mill
Rebar Shipments 227 266 463 551
Domestic Steel Mill Structural
and Other Shipments 164 364 360 673
CMCZ Shipments 237 403 532 671
Total Mill Tons Shipped 628 1,033 1,355 1,895

Average FOB Mill Domestic
Selling Price (Total Sales) $656 $617 $729 $601
Average Cost Domestic Mill
Ferrous Scrap Utilized $206 $292 $277 $269
Domestic Mill Metal Margin $450 $325 $452 $332
Average Domestic Mill Ferrous
Scrap Purchase Price $167 $275 $216 $254
Average FOB Mill CMCZ
Selling Price (Total Sales) $457 $576 $582 $574
Average Cost CMCZ Ferrous Scrap
Utilized $258 $336 $305 $333
CMCZ Mill Metal Margin $199 $240 $277 $241
Average CMCZ Ferrous Scrap
Purchase Price $201 $319 $234 $305

Fab Plant Rebar Shipments 241 226 530 488
Fab Plant Structural, Post,
Joist and Deck Shipments 105 150 243 316
Total Fabrication Tons Shipped 346 376 773 804

Average Fab Selling Price
(Excluding Stock
& Buyout Sales) $1,243 $1,022 $1,260 $1,018

Domestic Scrap Metal Tons
Processed and Shipped 476 833 1,039 1,620

BUSINESS SEGMENTS
(in thousands)
Three months ended Six months ended
2/28/09 2/29/08 2/28/09 2/29/08
Net Sales
Americas Recycling $138,791 $478,030 $399,241 $903,395
Americas Mills 281,290 467,790 668,774 870,600
Americas Fab and
Distribution 685,538 636,902 1,602,275 1,278,190
International Mills 136,666 245,886 360,737 414,064
International Fab and
Distribution 587,749 752,533 1,518,342 1,509,925
Corporate, Discontinued
Operations
and Eliminations (211,864) (326,973) (558,369) (606,002)
Total Net Sales $1,618,170 $2,254,168 $3,991,000 $4,370,172

Adjusted Operating
Profit (Loss):
Americas Recycling $(36,178) $25,634 $(64,131) $42,511
Americas Mills 73,085 55,263 191,785 124,476
Americas Fab and
Distribution 16,972 (7,638) 83,600 22,798
International Mills (24,324) 9,651 (41,059) 9,074
International Fab
and Distribution (11,838) 21,708 3,047 48,267
Corporate and
Eliminations (27,398) (25,793) (58,353) (48,504)

COMMERCIAL METALS COMPANY
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands except share data)

Three months ended Six months ended
2/28/09 2/29/08 2/28/09 2/29/08
Net sales $1,618,170 $2,254,168 $3,991,000 $4,370,172

Costs and expenses:
Cost of goods sold 1,455,225 2,016,397 3,561,371 3,871,777
Selling, general and
administrative expenses 172,884 157,411 326,394 307,410
Interest expense 17,763 14,033 43,846 26,458
1,645,872 2,187,841 3,931,611 4,205,645
Earnings (loss) from
continuing operations
before income taxes
and minority interests (27,702) 66,327 59,389 164,527
Income taxes 7,008 22,923 37,774 56,280

Earnings (loss) from
continuing operations before
minority interests (34,710) 43,404 21,615 108,247
Minority interests (benefit) (163) 391 (117) 263
Earnings (loss) from
continuing operations (34,547) 43,013 21,732 107,984

Earnings (loss) from
Discontinued
operations before taxes (924) (4,229) 8,189 2,221
Income taxes (benefit) (164) (991) 3,222 1,266
Earnings (loss) from
discontinued operations (760) (3,238) 4,967 955

Net earnings (loss) $(35,307) $39,775 $26,699 $108,939

Basic earnings (loss) per share
Earnings (loss) from
continuing operations $(0.31) $0.37 $0.19 $0.93
Earnings (loss) from
discontinued operations $(0.01) $(0.02) $0.04 $0.01
Net earnings (loss) $(0.32) $0.35 $0.23 $0.94

Diluted earnings
(loss) per share
Earnings (loss) from
continuing operations $(0.31) $0.36 $0.19 $0.90
Earnings (loss) from
discontinued operations $(0.01) $(0.02) $0.04 $0.01
Net earnings (loss) $(0.32) $0.34 $0.23 $0.91

Cash dividends per share $0.12 $0.12 $0.24 $0.21

Average basic shares
outstanding 111,998,128 115,139,693 112,501,326 116,354,030
Average diluted shares
outstanding 111,998,128 118,028,571 113,917,263 119,200,422

COMMERCIAL METALS COMPANY
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
February 28, August 31,
2009 2008
Assets:
Current Assets:
Cash and cash equivalents $114,458 $219,026
Accounts receivable, net 989,080 1,369,453
Inventories 903,842 1,400,332
Other 185,576 228,632
Total Current Assets 2,192,956 3,217,443

Net Property, Plant and Equipment 1,169,760 1,154,322

Goodwill 72,124 84,837

Other Assets 249,173 289,769
$3,684,013 $4,746,371

Liabilities and Stockholders' Equity:
Current Liabilities:
Accounts payable - trade $413,610 $838,777
Accounts payable - documentary letters of credit 177,732 192,492
Accrued expenses and other payables 333,389 563,424
Income taxes payable and deferred income taxes - 156
Notes payable 27 31,305
Current maturities of long-term debt 11,498 106,327
Total Current Liabilities 936,256 1,732,481

Deferred Income Taxes 51,618 50,160
Other Long-Term Liabilities 91,702 124,171
Long-Term Debt 1,157,817 1,197,533
Total Liabilities 2,237,393 3,104,345

Minority Interests 2,804 3,643

Stockholders' Equity 1,443,816 1,638,383
$3,684,013 $4,746,371

COMMERCIAL METALS COMPANY
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Six months ended
2/28/09 2/29/08

Cash Flows From (Used by) Operating Activities:

Net earnings $26,699 $108,939
Adjustments to reconcile net earnings
to cash from (used by)
operating activities:
Depreciation and amortization 78,575 63,873
Minority interests (benefit) (117) 263
Provision for losses on receivables 23,378 1,424
Share-based compensation 8,766 9,068
Net loss on sale of assets and other 495 102
Writedown of inventory 61,325 -
Asset impairment 5,051 409

Changes in Operating Assets and Liabilities,
Net of Effect of Acquisitions:
Accounts receivable 395,485 (89,404)
Accounts receivable sold (repurchased) (118,817) 37,369
Inventories 319,023 (48,403)
Other assets 60,324 (70,486)
Accounts payable, accrued expenses,
other payables and income taxes (545,604) (59,406)
Deferred income taxes 2,583 (8,051)
Other long-term liabilities (28,102) 4,772
Net Cash Flows From (Used By) Operating
Activities 289,064 (49,531)

Cash Flows From (Used by) Investing Activities:
Capital expenditures (209,617) (144,446)
Purchase of minority interests in
CMC Zawiercie (6) (130)
Proceeds from the sale of property, plant
and equipment and other 4,842 663
Acquisitions of other businesses, net
of cash acquired (900) (21,040)
Net Cash Flows Used By Investing Activities (205,681) (164,953)

Cash Flows From (Used by) Financing Activities:
Decrease in documentary letters of credit (14,760) (9,392)
Short-term borrowings, net change (27,897) 38,309
Repayments on long-term debt (102,019) (1,201)
Proceeds from issuance of long-term debt 6,544 -
Stock issued under incentive and
purchase plans 1,378 12,808
Treasury stock acquired (18,514) (151,530)
Cash dividends (27,134) (24,629)
Tax benefits from stock plans 1,346 4,101
Net Cash Flows Used By Financing Activities (181,056) (131,534)
Effect of Exchange Rate Changes on Cash (6,895) 2,178

Decrease in Cash and Cash Equivalents (104,568) (343,840)
Cash and Cash Equivalents at Beginning of Year 219,026 419,275
Cash and Cash Equivalents at End of Period $114,458 $75,435

COMMERCIAL METALS COMPANY
Non-GAAP Financial Measures (Unaudited)
(dollars in thousands)

This press release uses financial statement measures not derived in accordance
with generally accepted accounting principles (GAAP). Reconciliations to the
most comparable GAAP measures are provided below.

EBITDA:
Earnings before interest expense, income taxes, depreciation and amortization.

EBITDA is a non-GAAP liquidity measure. It excludes Commercial Metals
Company's largest recurring non-cash charge, depreciation and amortization. As
a measure of cash flow before interest expense, it is one guideline used to
assess the Company's ability to pay its current debt obligations as they
mature and a tool to calculate possible future levels of leverage capacity.
EBITDA to interest is a covenant test in certain of the Company's note
agreements.

Three Months Six Months
Ended Ended
2/28/09 2/28/09
Net earnings (loss) $(35,307) $ 26,699
Interest expense 17,944 44,392
Income taxes 6,844 40,996
Depreciation and amortization 37,267 78,575
EBITDA $ 26,748 $190,662

EBITDA to interest coverage
for the quarter ended for the six months ended
February 28, 2009: February 28, 2009:
$26,748 / 17,944 = 1.5 $190,662 / 44,392 = 4.3

Total Capitalization:
Total capitalization is the sum of long-term debt, deferred income taxes, and
stockholders' equity. The ratio of
debt to total capitalization is a measure of current debt leverage. The
following reconciles total capitalization at February 28, 2009to the nearest
GAAP measure, stockholders' equity:

Stockholders' equity $1,443,816
Long-term debt 1,157,817
Deferred income taxes 51,618
Total capitalization $2,653,251

Other Financial Information

Long-term debt to cap ratio as of February 28, 2009:
Debt divided by capitalization

$1,157,817 / 2,653,251 = 43.6%

Total debt to cap plus short-term debt ratio as of February 28, 2009:

$1,169,342 / (2,653,251 + 11,498 + 27) = 43.9%

Current ratio as of February 28, 2009:
Current assets divided by current liabilities

$2,192,956 / 936,256 = 2.3

SOURCE Commercial Metals Company

Debbie Okle, Director, Public Relations of Commercial Metals Company,
+1-214-689-4354