CMC Commercial Metals Co.

Risks

• We are vulnerable to the economic conditions in the regions in which our operations are concentrated.
• Rapid and significant changes in the price of metals could adversely impact our business, results of operations and financial condition.
• Excess capacity and over-production by foreign producers in our industry as well as the startup of new steel-making capacity in the U.S. could result in lower domestic prices, which would adversely affect our sales, margins and profitability.
• We are involved, and may in the future become involved, in various environmental matters that may result in fines, penalties or judgments being assessed against us or liability imposed upon us which we cannot presently estimate or reasonably foresee and which may have a material impact on our business, results of operations and financial condition.
• Increased regulation associated with climate change and greenhouse gas emissions could impose significant additional costs on both our steelmaking and metals recycling operations.
• Physical impacts of climate change could have a material adverse effect on our costs and operations.
• The potential impact of our customers' non-compliance with existing commercial contracts and commitments, due to insolvency or for any other reason, may adversely affect our business, results of operations and financial condition.
• The agreements governing our notes and our other debt contain financial covenants and impose restrictions on our business.
• We may not be able to successfully identify, consummate or integrate acquisitions, and acquisitions may adversely affect our financial leverage.
• We may fail to realize all of the anticipated benefits of the acquisition of the Acquired Businesses or those benefits may take longer to realize than expected. We may also encounter significant difficulties in integrating the Acquired Businesses.
• New and clarifying guidance with regard to interpretation of certain provisions of the Tax Cuts and Jobs Act may adversely affect our business, results of operations, financial condition and cash flow.
• Impairment of long-lived assets in the future could have a material adverse effect on our business, results of operations and financial condition.
• Increases in the value of the U.S. dollar relative to other currencies may adversely affect our business, results of operations and financial condition.
• Operating internationally carries risks and uncertainties which could adversely affect our business, results of operations and financial condition.
• We rely on the availability of large amounts of electricity and natural gas for our mill operations. Disruptions in delivery or substantial increases in energy costs, including crude oil prices, could adversely affect our business, results of operations and financial condition.
• We may have difficulty competing with companies that have a lower cost structure or access to greater financial resources.
• Information technology interruptions and breaches in data security could adversely impact our business, results of operations and financial condition.
• Our mills require continual capital investments that we may not be able to sustain.
• Unexpected equipment failures may lead to production curtailments or shutdowns, which may adversely affect our business, results of operations and financial condition.
• Competition from other materials may have a material adverse effect on our business, results of operations and financial condition.
• Hedging transactions may expose us to losses or limit our potential gains.
• We are subject to litigation and legal compliance risks which could adversely affect our business, results of operations and financial condition.
• Our operations present significant risk of injury or death.
• Health care legislation could result in substantially increased costs and adversely affect our workforce.