Commercial Metals To Sell G.A.M Steel, Sees Q3 Impairment Charge

(RTTNews) - Commercial Metals Co. (CMC) said that on Friday, June 10, 2016, it signed a definitive asset sale agreement to sell its remaining steel distribution assets located in Australia. The company signed the deal through its wholly-owned Australian subsidiary, G.A.M. Steel Pty. Ltd.

The facility, located in Melbourne, Victoria, distributes and processes primarily long steel products. The transaction is expected to close in July 2016 and is subject to customary closing adjustments.

For the third fiscal quarter ended May 31, 2016, CMC anticipates recording a non-cash impairment charge in the range of $14.0 million to $16.0 million in its results from discontinued operations. This includes the impact of an accumulated foreign currency translation loss of about $13.5 million.