IRVING, Texas - Commercial Metals Company (NYSE:CMC) announced today the appointment of Kekin Ghelani as Senior Vice President, Chief Strategy Officer, effective immediately. Ghelani will be at the helm of strategic planning, driving growth, and overseeing mergers and acquisitions (M&A) as well as business integration efforts.
Ghelani's career includes a recent tenure as Chief Strategy and Growth Officer at Summit Materials (NYSE:SUM), Inc., and prior strategic leadership roles at DuPont de Nemours (NYSE:DD), Inc., Celanese (NYSE:CE) Corporation, McKesson Corporation (NYSE:MCK), and Honeywell International (NASDAQ:HON). His academic credentials include an MBA from Emory University and a Bachelor of Science in Mechanical Engineering from the University of South Alabama.
Peter R. Matt, President and CEO of Commercial Metals, expressed confidence in Ghelani's expertise in strategy and corporate development, emphasizing his expected contributions to the company's expansion objectives.
Commercial Metals, known for its innovative solutions in the construction sector, operates a manufacturing network in the United States and Central Europe. The company's offerings are integral to a variety of construction applications, including infrastructure and energy projects.
The information is based on a press release statement from Commercial Metals Company.
In other recent news, Commercial Metals Company (CMC) reported robust Q3 financial results, with net earnings standing at $119.4 million, or $1.02 per diluted share, on net sales of $2.1 billion. The company's consolidated core EBITDA was $256.1 million, showing a 12.3% margin. On the leadership front, Barbara R. Smith is set to retire as Executive Chairman of the Board in 2024, with Robert S. Wetherbee taking over her position. Tandra Perkins will also join the Board, contributing her extensive leadership experience.
Research firm Jefferies recently initiated coverage of CMC with a Buy rating, citing the company's strong position in the US rebar market and its competitive valuation compared to peers. This positive sentiment is based on the performance of rebar and other structural/long products in the United States, which have maintained their prices better than flat-rolled steel this year. According to Jefferies, this price resilience is due to demand growth in US construction-related end markets, driven by policy-based investment.
In terms of project progress, CMC anticipates EBITDA breakeven for the Arizona micro mill in Q4 fiscal 2024 or Q1 fiscal 2025. The company has also revised its capital spending outlook for fiscal 2024 to $400 million to $425 million, while planning for capital expenditures around $600 million to $650 million for fiscal 2025. These are some of the recent developments at CMC.
InvestingPro Insights
As Commercial Metals Company (NYSE:CMC) welcomes Kekin Ghelani to its executive team, it's worth noting some key financial metrics that provide context to the company's current position. According to InvestingPro data, CMC boasts a market capitalization of $6.28 billion, with a price-to-earnings ratio of 11.27, indicating a relatively attractive valuation compared to industry peers.
The company's financial health appears robust, with InvestingPro Tips highlighting that CMC has maintained dividend payments for an impressive 54 consecutive years. This long-standing commitment to shareholder returns aligns well with the company's strategic focus on growth and expansion, which Ghelani will be tasked with advancing in his new role.
Moreover, CMC's financial stability is further underscored by another InvestingPro Tip, which notes that the company's liquid assets exceed its short-term obligations. This strong liquidity position could provide Ghelani with the financial flexibility needed to pursue strategic initiatives and potential M&A opportunities.
For investors seeking a deeper understanding of CMC's financial landscape, InvestingPro offers 10 additional tips that could inform investment decisions. These insights, along with real-time metrics, are available through the InvestingPro product, providing a comprehensive view of CMC's market position and potential.
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