CMC/SMI HEADLINESSteel Producers /
CMC/SMI
Commercial Metals Declares 2-for-1 Stock Split
Apr. 25, 2006 April 25, 2006 — Commercial Metals Co.’s board of directors has declared a two-for-one stock split in the form of a 100% stock dividend on the company's common stock payable May 22, 2006 to shareholders of record May 8, 2006. Each stockholder of record will receive one additional share of CMC common stock for each share held as of the record date.
The company also announced its intention to institute a quarterly cash dividend of 6 cents per share on the increased number of shares resulting from the stock dividend. In January 2006, the company announced a 67% increase in the cash dividend from 6 cents to 10 cents per share. After the effect of the two-for-one stock split in the form of the 100% stock dividend, the new quarterly dividend rate of 6 cents per share represents a doubling of the cash dividend payout within four months. The increased cash dividend rate of 6 cents per share will be effective with the next cash dividend declaration for the July 2006 dividend.
CMC Chairman and CEO Stanley A. Rabin said, "These actions continue to reflect CMC's confidence in our near-term as well as long- term business prospects. We remain focused on increasing shareholder value. We believe the additional market liquidity resulting from the increased number of shares outstanding will assist in our effort. This second increase in the cash dividend rate within four months emphasizes our continuing commitment to shareholders."
Commercial Metals Co. 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 overseas markets.