CMC buys back 1.9 million shares

CMC buys back 1.9 million shares

Commercial Metals Company (CMC) repurchased 1.9 million shares, and its board of directors authorized the purchase of up to 2 million shares of the firm’s common stock on May 24, 2005. The Texas-based company bought back the shares for $50’675’000 (an average of $26.06 per share) in April and May 2005. The recent re-purchases complete the final phase of a buy-back initiative started in March 2003. In a company press release, CMC Chairman, President, and CEO Stanley A. Rabin said that the move “will continue to add value for our stockholders." The shares will be used to fund employee benefit programs and future acquisitions. CMC is a diverse steel company with scrap processing yards; rebar and merchant bar mills; and downstream fabrication businesses. They also operate a trading company and import steel goods to the US.