1. CMC – Business Model
Vertical Integration
Product
Diversification
1st Quarter 2009 Global Geographic
Dispersion
CMC 1st Quarter 2009
Current Market Conditions & Outlook North America
Ferrous Scrap Prices – After Falling to
Global Liquidity Crisis has Paralyzed the Steel
$125 GT Recovering to $230-240
Markets
Ferrous Scrap Price Stabilization Near Term
Markets Lack Confidence that Bottom is in Sight
as Winter Limits Supply
Inventory Destocking Universal as Cash
December Slow With Year-End Balance
Regains Cache
Sheet Cleanup
CMC Production Cutbacks – 69% in First
Rebar Fabrication Backlogs Refilling at 60%
Quarter; Heading Lower in the Second Quarter
Rate
Sharp Ferrous Scrap Declines Abated; Some
Large Rebar Jobs Still Scarce
Upward Stability
Merchant Products Hit Harder than Rebar
Largest Commercial Exposures – Unwarranted
as Service Centers Buy on Needs Only;
Contract Cancellations, Market Claims, Price
Use Mills as JIT Warehouses
Renegotiations; May Lead to Unexpected
Inventory Positions
CMC 1st Quarter 2009 CMC 1st Quarter 2009
1
2. North America Europe / Middle East
Rebar Imports Continue Downward Trend Widespread Reports of Mill Production
– Only 21,000 MT Imported in November (Turkey/Mexico)
Cutbacks; Weakness into 2009
– Only 80,000 MT / Month Average YTD 2008
Middle East Rebar Positions Being Sold Off;
– Compare with 144,000 MT / Month in 2007
Billets Remain the Overhang
– Future Deliveries from Turkey - 40,000 MT (January); 20,000
MT (February)
Polish Economy Remains Strong Relative to
– Houston Warehouse (Inbesa) Inventories – 49,500 MT at
Neighbors; Still Awaiting Boost from
1,200 MT Daily Volume
Latest Turkish Offers $480-490 MT CFR Houston; Infrastructure Spending
Few Takers
Numerous Governments Announcing Stimulus
– Long Lead Times
Packages
– Must Commit to Larger Quantities
– Price Volatility Fears
– Credit / Working Capital Constraints
Collapse of Freight Rates (90-98% Off Highs) Not Enough
Incentive; U.S. $ Weaker
Infrastructure Stimulus Spending Favorable But Lacking in
Details; Will Not Impact Until Later in 2009
CMC 1st Quarter 2009 CMC 1st Quarter 2009
China China
Using All Means at its Disposal to Maintain Growth Steel Mills Cut Back Production 30-50%
Target Remains 8-9% GDP in 2009 Long Products Demand and Prices Improving
Fiscal Stimulus Slightly; Flat Products Remain Weak
– Announced Higher Building Standards for Schools After
November Finished Steel Exports Decline
Earthquake Disaster
28% from November 2007
– US $590 Billion Infrastructure Spending
YTD Export Decline Only 3%; Bullish Pricing
– Focus Major Infrastructure Projects – Rail, Ports, Highways
– Continued Emphasis on Public Housing in 1H Overcame Additional Export Taxes
– Lowering Taxes (Including Income Taxes?)
Pressure to Cutback – AD Threats; Iron Ore
– Reducing Export Taxes
Negotiations; Pollution; Consolidation
Monetary
– Rapidly Cutting Interest Rates, Latest by 1.08% (11/27/08)
– Providing More Export Subsidies
– Currency Now Depreciating to US $ (6.83-6.85)
CMC 1st Quarter 2009 CMC 1st Quarter 2009
2
3. China Project Review
Arizona Micro Mill
Steel Mills Starting to Buy Imported Scrap – Full Scale Construction Began in August When Required Permits Received
– Expected Commissioning Date – 9/9/09
– $155 Million Total Cost; FY 2009 Expected Spending $105 Million
Spot Iron Ore Prices Now $70-73 MT – 280,000 Tons of Rebar
(Bottom Mid November at $65/MT) Polish Flexible Section Mill
– Construction Underway
Chinese Mills Buying Only on Spot Markets; – $190 Million Total Cost ; FY 2009 Expected Spending $180 Million
– 650,000 MT
No One Buys at Benchmark (Contract) Prices – Increased Product Range; Higher Quality Wire Rod / Larger Sizes
– Expected Commissioning January 2010
Large Inventory of Iron Ore at Ports – Permanent Financing Already in Place
(60-70 Million MT); Likely to Take One Croatian Melt Shop and Caster Upgrade
– Quick Payback; Aim is Cost Reduction and Yield Improvement
to Two Quarters to be Significantly Reduced – “Previously Owned” but Massively More Efficient Furnace Purchased
– Will Allow Current Furnace to Become LMS
– Caster Improvements Will Allow Production of Round Billets; Better Yields and
Possible Outside Sales
– Commissioning End of FY 2009
– $55 Million Total Cost
SAP
– Fourth Rollout (2 Domestic Mills; 3 Recycling Yards) on 1/1/09
– By End of FY 2009, 70% of Earnings Power of CMC on SAP
– Benefit Realization Begins in FY 2010
CMC 1st Quarter 2009 CMC 1st Quarter 2009
CMC Steel Arizona Update CMC Steel Arizona Update
Cooling Bed Passline
Mill Pulpit
CMC 1st Quarter 2009 CMC 1st Quarter 2009
3
7. Americas Recycling Americas Mills
Quarterly 000’s) Shipments
(Tons Scrap Adjusted Operating Profit
($ in Millions)
(Tons 000’s) ($ in Millions)
$140
118.7
900 871
1,000 $120
833
787
$100
800
563
69.2
$80
600
55.3
49.2
$60
400
34.0
$40
200
$20
0
1Q08 2Q08 3Q08 4Q08 1Q09
$0
Ferrous Nonferrous 1Q08 2Q08 3Q08 4Q08 1Q09
CMC 1st Quarter 2009 CMC 1st Quarter 2009
Americas Mills Americas Steel Mills
Product Mix Average Selling Prices
(Tons 000’s) ($ per Ton)
673 CMC TX CMC AL CMC SC CMC AR
631
630
800 594
700 $950
432
600 $850 837
500 309 364 373 346 734
$750
723
400 196 $650
300
$550 537
200
285 266 300 285 236 $450
100
$350
0
1Q08 2Q08 3Q08 4Q08 1Q09
l
l
v
v
g
g
r
t
t
n
b
n
p
p
c
r
8
y
Ju
Ju
Oc
Oc
Ap
Ma
No
No
De
Au
Au
Fe
Ju
Ju
Se
Se
Ma
n -0
Ja
Merchant Shapes, Billets & Rebar
Structurals
CMC 1st Quarter 2009 CMC 1st Quarter 2009
7
8. Americas Mills Americas Mills
Americas Steel Mill Margins Electric Rates by Quarter
1st Quarter Comparisons
FY FY CMC-TX CMC-AL CMC-SC CMC-AR
2009 2008 Change
10.00
Avg. Selling Price $796 $585 211 9.00
Cents/KWH
8.00
Cost of Scrap Utilized $336 $246 90
7.00
Metal Margin $460 $339 121 6.00
5.00
Tons Shipped* 432 594 (162)
4.00
Billet Tons Shipped* 39 90 (51)
3.00
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
*Tons in thousands
CMC 1st Quarter 2009 CMC 1st Quarter 2009
Americas Mills Americas Mills
Natural Gas Rates by Quarter Percentage of Manufactured Cost per Ton
Average of Mills in Texas / Alabama / South Carolina
CMC-TX CMC-AL CMC-SC CMC-AR
20.00 Year Year
Ended Ended
YTD
17.00 8/31/08 8/31/07
11/30/08
$/MCF
14.00 Material (Scrap) 52% 60% 35%
11.00 Supplies (Electrodes/Alloys) 12% 10% 15%
8.00 Utilities (Electricity/Gas) 7% 8% 13%
5.00 Maintenance 8% 5% 8%
2.00 Labor 5% 4% 8%
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Depreciation 3% 2% 6%
Other 13% 11% 15%
CMC 1st Quarter 2009 CMC 1st Quarter 2009
8
9. Americas Mills Americas Mills
Copper Tube Manufacturing Copper Tube Manufacturing
Average Prices Pounds Shipped (in Millions)
24
6.00
21
CY Avg – 3.77
LY Avg – 4.34
5.00 16.7
18
Selling
14.5
13.9
4.00 13.3
15 12.8
11.7
11.5
P r ic e P e r P o u n d
10.8
10.4
12
3.00
Cost 9
CY Avg – 2.94
LY Avg – 3.38
2.00 6
3
1.00
0
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
0.00
l
l
t
t
r
n
b
n
r
p
p
y
g
g
Ja c
v
v
Ju
Ju
Oc
Oc
08
Ap
Ma
De
Fe
Ju
Ju
Ma
Au
No
Au
No
Se
Se
n-
CMC 1st Quarter 2009 CMC 1st Quarter 2009
Americas Fabrication & Distribution Americas Fabrication & Distribution
Adjusted Operating Profit Shipments
($ in Millions)
($ in Millions) (Tons 000’s)
66.6
$75 600
470
452 427
500 428
$50 376
400
30.4
300
$25
200
(7.6) (22.3) (68.0)
$0 100
0
1Q08 2Q08 3Q08 4Q08 1Q09
-$25 1Q08 2Q08 3Q08 4Q08 1Q09
Posts Deck
Structurals Joist
Rebar
CMC 1st Quarter 2009 CMC 1st Quarter 2009
9
11. International Mills International Fabrication & Distribution
CMCS (Croatia) Adjusted Operating Profit
($ in Millions)
1st Quarter Comparisons ($ in Millions)
$50
2009 2008
40.3
Tons Melted 19,567 1,900 35.7
$40
Tons Rolled 18,081 4,900 26.6
$30 21.7
Tons Shipped 17,743 9,400
14.9
$20
Welded Tons Shipped 4,914 3,700
$10
Drawn Tons Shipped 771 700
$0
Seamless Tons Shipped 12,058 5,000
1Q08 2Q08 3Q08 4Q08 1Q09
% Domestic 11% 26%
*Tons in thousands
CMC 1st Quarter 2009 CMC 1st Quarter 2009
Investor Information Forward-Looking Statements
This written and verbal presentation may contain forward-looking forward-
looking statements regarding the outlook for the Company's financial results
Non-GAAP Financial Measures including net earnings, economic conditions, credit availability, product pricing
and Regulation G and demand, production rates, inventory levels, and general market conditions.
These forward-looking statements generally can be identified by phrases such
as the company or its management “expect,” “anticipates,” “believe,” “ought,”
This written and verbal presentation may use financial “should,” “likely,” “appears,” “projected,” “forecast,” “outlook,” “will” or other
statement measures considered non-GAAP financial measures words or phrases of similar impact. There is inherent risk and uncertainty in any
forward-looking statements. Variances will occur and some could be materially
by the Securities and Exchange Commission (SEC). different from management's current opinion. Developments that could impact
In compliance with the SEC’s Regulation G, we have the Company's expectations include the success or failure of government efforts
to stimulate the economy including restoring credit availability and confidence in
provided on our web site at a recovery, construction activity, difficulties or delays in the execution of
www.cmc.com
construction contracts resulting in cost overruns or contract disputes, metals
pricing over which the Company exerts little influence, interest rate changes,
increased capacity and product availability from competing steel minimills and
other steel suppliers including import quantities and pricing, court decisions,
a reconciliation to the most comparable GAAP measure and industry consolidation or changes in production capacity or utilization, the
other information that may be of interest to investors. ability to integrate acquisitions into operations; global factors including political
and military uncertainties, currency fluctuations, energy and supply prices and
decisions by governments impacting the level of steel imports and pace of
overall economic activity, particularly China.
CMC 1st Quarter 2009 CMC 1st Quarter 2009
11
