Commercial Metals boosts share buyback program by $500M
Investing.com | Editor Rachael Rajan
Published Jan 10, 2024 04:42PM ET
IRVING, Texas - Commercial Metals Company (NYSE: NYSE:CMC), a prominent player in providing solutions for the construction sector, has expanded its share repurchase program by an additional $500 million, as announced today. This increase brings the total program capacity to $850 million. Since the initiation of the buyback program in October 2021, CMC has repurchased approximately $310 million of its own stock.
The decision to enhance the share buyback program reflects the company's commitment to a balanced capital allocation strategy, buoyed by robust earnings and a strong cash flow profile. Peter R. Matt, President and CEO of CMC, stated that the company's solid financial position enables it to pursue growth opportunities while also delivering value to its shareholders through the return of free cash flow.
CMC plans to execute the repurchases opportunistically, in the open market or through privately negotiated transactions, adhering to federal securities laws and Rule 10b5-1 trading plans. The repurchase program's specifics, including timing and volume, will be contingent on market conditions and other considerations as assessed by the company's management. It is important to note that the program does not obligate CMC to repurchase a specific dollar amount or number of shares, and it can be adjusted, paused, or discontinued at the discretion of the Board of Directors at any time.
CMC is known for its manufacturing network in the United States and Central Europe, catering to the reinforcement needs of various construction applications, such as infrastructure, non-residential, residential, industrial, and energy generation and transmission.
The information in this article is based on a press release statement from Commercial Metals Company.
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