Jan. 7, 2015
Worthington Reports Profitable Quarter
Worthington Industries, Inc., Columbus, Ohio, reported net earnings of $29.5 million for its fiscal second quarter ended Nov. 30, a 28.2 percent improvement over the same period the prior year. Net sales totaled $871.0 million, an increase of 13.1 percent from the same quarter in fiscal year 2014.
The company's Steel Processing segment reported net sales of $552.8 million, an increase of 12.0 percent from the same quarter the previous year, on greater volumes and higher average selling prices. Operating income decreased slightly from the prior-year quarter to $33.9 million, however, due to higher manufacturing expenses and inventory holding losses.
"Steel Processing had a great quarter with increased volume," said John McConnell, chairman and CEO. "However, while we had strong revenue growth across the company, we were disappointed we did not meet our own company-wide expectations for results. We have a couple areas needing attention, particularly one operation in our oil and gas equipment business and one in Engineered Cabs.
During the quarter, the company acquired an 80 percent interest in dHybrid Systems LLC, which supplies compressed natural gas fuel systems for large trucks. Additionally, Worthington’s tailor welded blanking joint venture, TWB, opened a new facility in Cambridge, Ontario.
"There are solid areas of growth, particularly in automotive, where we are working with our customers on a number of initiatives, including lightweighting solutions," McConnell said. "We expect Steel Processing to continue to perform well. There are some markets, like agriculture, where we are seeing slower demand. However, the company is on track to continue to reach our primary goal of year-over-year earnings growth and positive cash flow."