In a press release today, Commercial Metals Company said the recent sale of CMC Cometals, which is the first step in the company's plan to exit the International Marketing and Distribution segment, will be reflected in the company’s earnings statement as of the fourth quarter of fiscal 2017.
Depending upon a number of factors, including divesting the remaining businesses of the International Marketing and Distribution segment, CMC currently estimates that it will record pre-tax, non-cash charges associated with the entire exit plan in the fourth quarter of 2017 in the range of $30 to $35 million as well as approximately $5 million in cash charges.
In addition, the company's fourth quarter results will include pre-tax net expense of $16 million related to the previously announced cash tender offer and redemption of its 7.35 percent Senior Notes due 2018, as well as approximately $10 million in expense associated with severance costs.
Barbara Smith, President and Chief Executive Officer, commented, "These actions position us well to enter our new fiscal year of 2018 with a focus on our core manufacturing operations in the United States and Poland, as well as reducing interest expense by approximately $22 million year over year."