-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FSKBinnvrHQX8d8TrVKpMz3+yYtZOTUIaV9SQ3G5PyVo8RzamDAaGtZf98w8IoSJ 33FsIYilBZYkVPR/dq6ofQ== 0000950134-99-005880.txt : 19990702 0000950134-99-005880.hdr.sgml : 19990702 ACCESSION NUMBER: 0000950134-99-005880 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990531 FILED AS OF DATE: 19990701 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMERCIAL METALS CO CENTRAL INDEX KEY: 0000022444 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-METALS SERVICE CENTERS & OFFICES [5051] IRS NUMBER: 750725338 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-04304 FILM NUMBER: 99657776 BUSINESS ADDRESS: STREET 1: 7800 STEMMONS FRWY STREET 2: P O BOX 1046 CITY: DALLAS STATE: TX ZIP: 75221 BUSINESS PHONE: 2146894300 MAIL ADDRESS: STREET 1: 7800 STEMMONS FRWY STREET 2: PO BOX 1046 CITY: DALLAS STATE: TX ZIP: 75221 10-Q 1 FORM 10-Q FOR QUARTER ENDED MAY 31, 1999 1 FORM 1O-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 2O549 ------------------------------------ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ------------------------------------------- For quarter ended May 31, 1999 Commission File Number 1-4304 COMMERCIAL METALS COMPANY ---------------------------------------- (Exact name of registrant as specified in its charter) Delaware 75-0725338 - ------------------------------- ---------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 7800 Stemmons Freeway P.O. Box 1046 Dallas, Texas 75221 -------------------------------- (Address of principal executive offices) (Zip Code) (214) 689-4300 ------------- (Registrant's telephone number, including area code) ----------------------------------------- Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months ( or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- As of May 31, 1999 there were 14,332,692 shares of the Company's common stock issued and outstanding excluding 1,799,891 shares held in the Company's treasury. 2 COMMERCIAL METALS COMPANY AND SUBSIDIARIES INDEX
Page No. -------- PART I - Financial Statements: Consolidated Balance Sheets - May 31, 1999 and August 31, 1998 2-3 Consolidated Statements of Earnings - Three months and nine months ended May 31, 1999 and 1998 4 Consolidated Statements of Cash Flows - Nine months ended May 31, 1999 and 1998 5 Consolidated Statement of Stockholders' Equity For the nine months ended May 31, 1999 6 Notes to Consolidated Financial Statements 7 Management's Discussion and Analysis of the Consolidated Financial Statements 8-14 PART II - Other Information and Signatures 15-16
Page 1 3 COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS (In thousands except share data)
May 31, August 31, 1999 1998 ----------- ----------- CURRENT ASSETS: Cash $ 32,520 $ 30,985 Accounts receivable (less allowance for collection losses of $8,019 and $8,120) 318,149 318,655 Inventories 233,803 257,231 Other 54,251 66,629 ----------- ----------- TOTAL CURRENT ASSETS 638,723 673,500 OTHER ASSETS 13,569 10,655 PROPERTY, PLANT, AND EQUIPMENT, at cost: Land 25,394 24,967 Buildings 84,805 67,505 Equipment 597,635 499,899 Leasehold improvements 28,956 26,084 Construction in process 58,880 61,946 ----------- ----------- 795,670 680,401 Less accumulated depreciation and amortization (395,192) (361,939) ----------- ----------- 400,478 318,462 ----------- ----------- $ 1,052,770 $ 1,002,617 =========== ===========
See notes to consolidated financial statements. Page 2 4 COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY ( In thousands except share data )
May 31, August 31, 1999 1998 ----------- ----------- CURRENT LIABILITIES: Commercial paper $ 25,000 $ 40,000 Notes payable 9,644 60,809 Accounts payable 164,584 156,389 Other payables and accrued expenses 154,863 150,512 Income taxes payable 725 6,870 Current maturities of long-term debt 9,704 11,483 ----------- ----------- TOTAL CURRENT LIABILITIES 364,520 426,063 DEFERRED INCOME TAXES 21,376 21,376 LONG-TERM DEBT 264,863 173,789 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Capital stock: Preferred stock -- -- Common stock, par value $5.00 a share; authorized 40,000,000 shares; issued 16,132,583 shares, outstanding 14,332,692 and 14,569,611 shares 80,663 80,663 Additional paid-in capital 14,262 14,285 Cumulative translation adjustment (650) (1,596) Retained earnings 353,320 328,597 ----------- ----------- 447,595 421,949 Less treasury stock, 1,799,891 and 1,562,972 shares at cost (45,584) (40,560) ----------- ----------- 402,011 381,389 ----------- ----------- $ 1,052,770 $ 1,002,617 =========== ===========
See notes to consolidated financial statements. Page 3 5 COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (In thousands except share data)
Three months ended Nine months ended May 31, May 31, ---------------------------- ---------------------------- 1999 1998 1999 1998 ----------- ----------- ----------- ----------- NET SALES $ 582,154 $ 606,099 $ 1,682,067 $ 1,724,778 COSTS AND EXPENSES: Cost of goods sold 506,015 532,263 1,461,645 1,520,857 Selling, general and administrative expenses 50,601 46,213 145,567 132,585 Interest expense 4,088 4,720 13,632 13,117 Employees' retirement plans 3,917 4,908 12,778 14,314 ----------- ----------- ----------- ----------- 564,621 588,104 1,633,622 1,680,873 EARNINGS BEFORE INCOME TAXES 17,533 17,995 48,445 43,905 INCOME TAXES 6,531 6,604 18,046 16,113 ----------- ----------- ----------- ----------- NET EARNINGS $ 11,002 $ 11,391 $ 30,399 $ 27,792 =========== =========== =========== =========== Basic earnings per share $ 0.76 $ 0.77 $ 2.09 $ 1.88 Diluted earnings per share $ 0.76 $ 0.75 $ 2.07 $ 1.84 Cash dividends per share $ 0.13 $ 0.13 $ 0.39 $ 0.39 Average basic shares outstanding 14,493,180 14,870,346 14,559,437 14,786,736 Average diluted shares outstanding 14,562,281 15,254,211 14,663,998 15,112,299
See notes to consolidated financial statements. Page 4 6 COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)
Nine months ended May 31, ------------------------- 1999 1998 - ---------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 30,399 $ 27,792 Adjustments to earnings not requiring cash: Depreciation and amortization 36,621 34,722 Provision for losses on receivables 1,789 1,957 Other (125) (95) --------- --------- Cash flows from operations before changes in current assets and liabilities 68,684 64,376 Changes in current assets and liabilities: Decrease (increase) in receivables (1,283) (54,600) Decrease (increase) in inventories 23,428 (36,024) Decrease (increase) in other assets 10,410 (8,100) Increase (decrease) in accounts payable, accrued expenses and income taxes 6,401 33,299 --------- --------- Net Cash Provided (Used) by Operating Activities 107,640 (1,049) - ---------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (118,637) (87,669) Sales of property, plant and equipment 125 95 --------- --------- Net Cash Used by Investing Activities (118,512) (87,574) - ---------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Commercial paper - net change (15,000) 40,000 Notes payable - net change (51,165) 58,000 New long-term debt 100,000 -- Payments on long-term debt (10,705) (11,428) Stock issued under stock option and purchase plans 1,614 7,500 Treasury stock acquired (6,661) (2,857) Dividends paid (5,676) (5,797) --------- --------- Net Cash Provided by Financing Activities 12,407 85,418 - ---------------------------------------------------------------------------------------------- Increase (Decrease) in Cash and Cash Equivalents 1,535 (3,205) Cash and Cash Equivalents at Beginning of Year 30,985 32,998 --------- --------- Cash and Cash Equivalents at End of Period $ 32,520 $ 29,793 ========= =========
See notes to consolidated financial statements. Page 5 7 COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (In thousands except share data)
Common Stock Treasury Stock --------------------- ----------------------- Cumulative Add'l Number of Translation Paid-In Retained Number of Shares Amount Adjustment Capital Earnings Shares Amount ---------- ------- ------------ -------- ---------- ---------- ---------- Balance September 1, 1998 16,132,583 $80,663 ($1,596) $14,285 $ 328,597 (1,562,972) ($ 40,560) Net earnings for nine months ended May 31, 1999 30,399 Cash dividends - $.39 a share (5,676) Treasury stock acquired (300,000) (6,661) Translation adjustment 946 Stock issued under stock option, purchase and bonus plans (23) 63,081 1,637 ---------- ------- ------- ------- ---------- ---------- ---------- Balance, May 31, 1999 16,132,583 $80,663 ($ 650) $14,262 $ 353,320 (1,799,891) ($ 45,584) ========== ======= ======= ======= ========== ========== ==========
See notes to consolidated financial statements. Page 6 8 COMMERCIAL METALS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE A - LONG-TERM DEBT AND EQUITY (in thousands):
Total Long-Term Current Amount Debt Maturities Outstanding --------- ---------- ----------- 6.75% notes due 2009 $ 100,000 $ -- $100,000 7.20% notes due 2005 100,000 -- 100,000 6.80% notes due 2007 50,000 -- 50,000 8.49% notes due 2001 14,285 7,143 21,428 8.75% note due 1999 2,141 2,141 Other 578 420 998 --------- ---------- ----------- $ 264,863 $ 9,704 $274,567 ========= ========== ===========
NOTE B - TAXES ON INCOME: Provision for taxes on income includes estimated United States taxes on undistributed earnings of subsidiaries outside the United States. NOTE C - QUARTERLY FINANCIAL DATA: In the opinion of Management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of May 31, 1999, the results of operations for the three months and nine months then ended and the cash flows for the nine months. The results of operations for the nine month periods are not necessarily indicative of the results to be expected for a full year. NOTE D - EARNINGS PER SHARE: There were no adjustments to net earnings to arrive at net income for either the three months or nine months ended May 31, 1999 and 1998. The reconciliation of the denominators of the earnings per share calculations are as follows:
Three months Nine months ended May 31, ended May 31, 1999 1998 1999 1998 ---------- ---------- ---------- ---------- Shares outstanding for basic earnings per share 14,493,180 14,870,346 14,559,437 14,786,736 Effect of dilutive securities: Stock options/purchase plans 69,101 383,865 104,561 325,563 Shares outstanding for dilutive earnings per share 14,562,281 15,254,211 14,663,998 15,112,299
Stock options with total share commitments of 1,584,437 at May 31, 1999 were anti-dilutive based on an average share price of $22.45 for the quarter and exercise prices between $24.50 and $29.81. The options expire at various dates between 2003 and 2006. NOTE E - OTHER COMPREHENSIVE INCOME: The Company's foreign currency translation adjustments totaled $335,000 and $946,000 in the quarter and nine months ended May 31, 1999, respectively. Page 7 9 MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED RESULTS OF OPERATIONS (in millions)
Nine months ended Third Quarter May 31, ---------------------- ----------------------- 1999 1998 1999 1998 ----- ----- ------ ------ Net sales $ 582 $ 606 $1,682 $1,725 Net earnings 11.0 11.4 30.4 27.8 Cash flow 24.8 24.0 68.7 64.4 EBITDA 34.8 34.4 98.7 91.7 LIFO reserve 12.2 28.5
SIGNIFICANT EVENTS AFFECTING THE COMPANY THIS QUARTER: - - Net earnings including start up costs were comparable to the prior year period. - - Higher steel fabrication and copper tube profitability sustained the Manufacturing Segment. - - Steel minimill operating profit declined from the prior year period due to construction interference, an import surge at very low prices, and a transformer problem at the Texas mill. - - The Company acquired Construction Materials, Inc., expanding its concrete - related products business. - - The Recycling segment recorded a smaller loss than the prior year period in continuing poor market conditions. - - The Marketing and Trading segment continued to be profitable despite global oversupply and depressed prices. Page 8 10 CONSOLIDATED DATA The LIFO method of inventory valuation increased net earnings for the quarter $3.5 million (24 cents per diluted share) compared to an increase of $280 thousand (2 cents per diluted share) last year. For the nine months, net earnings were $6.7 million higher (45 cents per diluted share) compared to an increase of $1.1 million (7 cents per diluted share) last year. SEGMENT OPERATING DATA (in thousands) Net sales and operating profit by business segment are shown in the following table:
Three months ended Nine months ended May 31, May 31, ---------------------------- ------------------------------ 1999 1998 1999 1998 --------- --------- ----------- ----------- NET SALES: Manufacturing $ 306,316 $ 313,719 $ 899,567 $ 883,757 Recycling 81,591 109,087 236,727 318,107 Marketing and Trading 202,486 199,866 589,474 570,755 Corporate and Elimination (8,239) (16,573) (43,701) (47,841) --------- --------- ----------- ----------- $ 582,154 $ 606,099 $1,682,067 $ 1,724,778 ========= ========= ========== =========== OPERATING PROFIT (LOSS): Manufacturing $ 19,608 $ 19,683 $ 59,917 $ 48,339 Recycling (255) (420) (6,109) (410) Marketing and Trading 4,825 4,962 14,167 12,638 Corporate and Elimination (2,557) (1,510) (5,898) (3,545) --------- --------- ----------- ----------- $ 21,621 $ 22,715 $ 62,077 $ 57,022 ========= ========= =========== ===========
MANUFACTURING - The Company's Manufacturing segment consists of the Steel Group and the Copper Tube Division. Operating profit for the segment was comparable to last year's third quarter while revenues decreased 2%. Operating profit for the Company's four steel minimills was 42% below the prior year period. This was offset by higher earnings of the steel fabrication businesses and significantly better operating profit for the Copper Tube Division. Segment net sales decreased due to lower steel mill production levels and selling prices. However, margins were aided by lower raw material costs. Page 9 11 Steel prices were mixed as reflected in the table below:
Three months ended May 31, -------------------- 1999 1998 ---- ---- Average mill selling price $290 $326 Average fab selling price 667 649 Average scrap purchase price 73 113
The Steel Group operating profit was 8% below last year's third quarter. Mill shipments declined 8% to 449,000 tons from 490,000 tons while production levels were significantly down from last year because of major construction projects at the SMI Alabama and SMI South Carolina mills, the impact of imports and a transformer failure at the SMI Texas mill. However, margins were aided by lower scrap prices. While the average mill selling price was $36 per ton below last year, average scrap purchase costs were lower by $40 per ton. The mills absorbed an after-tax charge $1.8 million relating to construction interference with operations and start-up costs associated with the construction projects. The new 800,000 tons per year rolling mill in South Carolina was commissioned in April, and in May, the Company began commissioning the new automated finishing line at the Alabama mill. Additional depreciation and amortization expense of $ 1.2 million was incurred in May for the South Carolina mill, and depreciation will begin in June for the Alabama project. Net sales and operating profit in the fabrication businesses were significantly above the prior year's third quarter in spite of losses on several large structural steel jobs. Fabricated steel shipments totaled 222,000 tons, and were identical to the prior year period. The average fab selling price rose $18 per ton, partially because of product mix, while the cost of steel purchased declined. During the quarter, the Steel Group acquired substantially all of the assets of Construction Materials, Inc., expanding its concrete-related products business into Louisiana. The Steel Group computer migration project after-tax expense for the third quarter 1999 was $2.3 million compared with $ 1.6 million last year. The Copper Tube Division operating profit almost doubled the same period last year due to better material spreads, while net sales increased 4%. Demand for plumbing and refrigeration tube was buoyed by the strong housing sector in the third quarter 1999. Copper tube shipments increased 2% versus the third quarter last year and production was 8% higher. Page 10 12 RECYCLING - The Recycling segment reported an operating loss of $255,000 for the third quarter 1999, which represented a 39% improvement from the prior year period loss of $420,000. Market conditions remained poor which resulted in a 25% decrease in net sales. However, results were better than the second quarter due to cost reductions at the processing plants. Cash flow from operations was positive. Ferrous scrap tonnage shipped decreased 1% and ferrous sales prices were an average $80 per ton or 30% lower than a year ago. The intake of scrap remained depressed. Nonferrous shipments increased 6%, and margins were higher. Total volume of scrap processed, including the Steel Group processing plants, was 528,000 tons, an increase of 9% from the 483,000 tons processed during the prior year period. MARKETING AND TRADING - Operating income for the Marketing and Trading segment was 3% lower than the prior year's third quarter, while net sales increased 1%. International metal markets continued to be oversupplied, and world prices remained depressed. Steel prices were substantially below last year and gross margins in steel marketing and distribution as well as steel trading consequently remained tight. The Company achieved further penetration in highly competitive, low priced markets for nonferrous metal products and maintained profitability through product line expansion. The industrial raw materials and products including ores, minerals, ferrous raw materials and primary metals remained profitable despite the pricing pressures. YEAR 2000 - As described in its Form 10K report for the year ended August 31, 1998, the Company has a comprehensive program to meet anticipated Year 2000 concerns. It continues to be substantially on schedule with this program. Steel Group computer migration after-tax expense this quarter was $2.3 million. Recycling, Marketing and Trading, and Corporate costs were minimal. ENVIRONMENTAL ACTIVITIES The Company is subject to federal, state and local pollution control laws and regulations in all locations where it has operating facilities. It anticipates that compliance with these laws and regulations will involve continuing capital expenditures and operating costs. Page 11 13 In the ordinary course of conducting its business, the Company becomes involved in environmental litigation, administrative proceedings, and governmental investigations. Certain of these environmental matters or other proceedings may result in fines, penalties or judgments against the Company which may have a material impact on earnings for a particular quarter. While the Company is unable to estimate precisely the ultimate dollar amount of exposure to losses in connection with such matters, it makes timely accruals as warranted. It is the opinion of the Company's management that the outcome of such proceedings, individually or in the aggregate, will not have a material adverse effect on the business or consolidated financial position of the Company. OUTLOOK - The outlook is mixed. Demand from the construction and manufacturing sectors of the U.S. economy remains strong whereas global markets still are weak. Low inventory levels for steel and nonferrous metal products in certain markets have stimulated orders, and international steel prices have had some recovery, albeit from depressed levels. Improved realized prices for the Company's steel bar products are anticipated, and manufacturing margins should remain consistent, primarily because any increases in the costs of raw material and supplies also should be modest. Steel mill production and shipments are expected to increase as the new mill projects are commissioned and become operational. The outlook for steel fabrication remains favorable, and the Company's downstream operations should benefit from the lower mill prices coupled with steady fab prices. Residential construction remains robust; consequently, the demand for copper tube is expected to remain strong. Indications are that the Federal transportation bill is leading to greater spending for highways and bridges. In general, steel bar and structural steel consumption should shift towards the public sector during the next few years. Ferrous scrap prices were somewhat firmer at the end of the quarter while nonferrous prices were weaker. Domestic demand is good, but export markets still are shaky. The fourth quarter of fiscal 1999 is likely to be comparable to the third quarter for the Recycling segment. In Marketing and Trading, most steel prices have marginally improved. Steel imports into the U.S. are forecast to decline, primarily due to anti-dumping and competitive domestic prices. The weak worldwide demand and prices for nonferrous metals will persist for the near future. The relatively more stable prices, though, should improve profit margins. The Company will continue to capitalize on opportunities that arise from the financial and market dislocations around the globe. Page 12 14 The Company's capital investments should generate additional net sales and earnings, especially beginning in the year 2000. The Company's vertical integration and unique business mix will continue to benefit operations, and a more favorable pricing environment is anticipated. This outlook section and third paragraph under the Manufacturing commentary above contain forward-looking statements regarding the outlook for the Company's short-term financial results including shipments, pricing, demand, production rates, general market conditions, and anticipated construction project completion and start-up. 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 interest rate changes, construction activity, unanticipated start-up expenses and delays, metals pricing over which the Company exerts little influence, new capacity and product availability from competing steel minimills and other steel suppliers including import quantities and pricing, global factors including credit availability, currency fluctuations, timing of litigation settlements and decisions by governments impacting the level and pace of overall economic growth. LIQUIDITY Cash flows from operations before changes in operating assets and liabilities for the nine months were $68.7 million compared to $64.4 million last year, due to higher net earnings, and depreciation and amortization. Inventories decreased $23.4 million with decreases in all segments due to decreased purchase prices and the Company's efforts to reduce its working capital requirements. Other assets decreased $10.4 million due to lower advances for materials. Accounts payable and accrued expenses increased $6.4 million, primarily due to provisions for employee benefit plans. The Company paid down short term debt with a second quarter public offering of $100 million investment grade, unsecured 6.75% ten year notes. The offering also included a shelf registration of $100 million. The Company also reduced its long-term debt by $10.7 million. The Company invested $118.6 million in capital expenditures, primarily for its South Carolina and Alabama mill projects, as part of its anticipated $150 million annual capital program. At May 31, 1999, there were 14,322,692 common shares issued and outstanding with 1,799,891 held in the Company's treasury. Stockholders' equity was $402 million or $28.05 per share. During the third quarter, the Company repurchased 300,000 shares of common stock at an average price of $22.20. Page 13 15 Net working capital was $274 million at May 31, 1999 compared to $247 million at August 31,1998. The current ratio was 1.8 compared to 1.6 at August 31,1998. The Company's effective tax rate for the nine months was 37.3%, compared to 36.7% last year. Long-term debt as a percent of total capitalization was 38.5% at May 31, 1999 compared to 30.1% at August 31, 1998. The ratio of total debt to total capitalization plus short-term debt stood at 42.2%, lower than the second quarter but an increase from year end due to capital expenditures and working capital requirements. Page 14 16 PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Reference is made to the information incorporated by reference from Item 3. Legal Proceedings in the Company's Annual Report on Form 10-K for the year ending August 31, 1998, filed November 24, 1998, with the Securities and Exchange Commission. ITEM 2. CHANGES IN SECURITIES Not Applicable ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not Applicable ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not Applicable ITEM 5. OTHER INFORMATION Not Applicable ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K A. Exhibits required by Item 601 of Regulation S-K. 27. Financial Data Schedule for the period ended May 31, 1999. B. No reports on Form 8-K have been filed during the quarter for which this report is filed. Page 15 17 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. COMMERCIAL METALS COMPANY /s/ WILLIAM B. LARSON July 1, 1999 William B. Larson Vice President & Chief Financial Officer /s/ MALINDA G. SULLIVAN July 1, 1999 Malinda G. Sullivan Controller Page 16 18 INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION - ----------- ----------- 27 Financial Data Schedule
EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 9-MOS AUG-31-1999 SEP-01-1998 MAY-31-1999 32,520 0 326,168 8,019 233,803 638,723 795,670 395,192 1,052,770 364,520 0 0 0 80,663 321,348 1,052,770 1,682,067 1,682,067 1,461,645 1,461,645 0 1,789 13,632 48,445 18,046 30,399 0 0 0 30,399 2.09 2.07
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