July 10, 2013
Worthington's Fiscal 2013 Earnings Grow Despite Weak Quarter
Worthington Industries Inc., Columbus, Ohio, reported fourth-quarter net earnings of $33.5 million, a 35.7 percent decline from the same period in its previous fiscal year. The company’s quarterly net sales declined by 7.0 percent to $704.1 million.
For the full year, Worthington reported net earnings of $136.4 million, up 17.6 percent from fiscal year 2012. Net sales for the year totaled $2.6 billion, up 3 percent primarily due to acquisitions. Net sales were offset by lower average selling prices, a byproduct of the declining market price of steel.
"We had a solid performance this quarter and an excellent fiscal year. Excluding impairment and restructuring charges, we achieved the highest annual earnings per share in our history," said John McConnell, chairman and CEO. "There was some softening in Steel Processing's volumes, largely attributable to one tolling customer, but the results were strong from Cylinders as the segment increased sales in retail products and alternative fuels, and found new markets in oil and gas through our acquisitions and product development.”
Steel Processing's fourth-quarter net sales of $374.6 million were down 13 percent, or $55.0 million, from the prior-year quarter. Lower average selling prices negatively affected net sales by $30.9 million, while lower direct and toll processing volumes reduced sales by $24.1 million.
During the quarter, Worthington acquired Palmer Mfg. & Tank Inc., a manufacturer of steel and fiberglass tanks, for a purchase price of $113.5 million. Worthington also announced the consolidation of BernzOmatic hand torch manufacturing operations in Medina, N.Y., into its existing facility in Chilton, Wis.
"Our outlook remains positive. We are positioned for growth both organically and from our acquisitions," said McConnell. "There is continued strength in automotive with shortened or eliminated summer shutdowns, and we anticipate some improvement in commercial construction."