Commercial Metals Looks to Increase CapEx Spending

Commercial Metals Co. announced plans to increase capital expenditures by 53 percent, to $81 million, in fiscal year ending Aug. 31, 2002.

According to a filing with the Securities and Exchange Commission, more than 30 percent of the capital expenditures are projected for expansion in downstream fabrication operations in the steel group and the acquisition of the remaining shares of Coil Steels Group, a distributor of steel sheet and coil products in Australia.

The remaining increase is partially due to several projects that were deferred and carried over from the prior year, the filing said.

Commercial Metals said there are no major projects planned at the steel mills for fiscal 2002, rather smaller enhancements and maintenance expenditures.

During fiscal 2001, capital spending was reduced to $53 million from $70 million in 2000 as Commercial Metals focused on reducing short-term debt. Dow Jones Newswire