July 8, 2015
Worthington Reports Profitable Fiscal 2015
Worthington Industries, Inc., Columbus, Ohio, reported net earnings of $76.8 million in its fiscal 2015, which ended May 31. The company’s earnings were about half the $151.8 million posted in 2014.
Full-year net sales totaled $3.4 billion in 2015, an 8.2 percent increase from the prior year. Those gains were driven by acquisitions in the company’s Steel Processing and Pressure Cylinder segments.
"We had a solid quarter and we generated solid earnings for fiscal 2015. However, we did not meet our goal of year-over-year growth," John McConnell, chairman and CEO told investors and analysts during the company’s quarterly conference call. "There were a number of factors that contributed to the softer year-over-year results, including falling steel prices, the downturn in oil and gas markets, and operations issues at certain facilities, which are being addressed.”
In the fourth quarter, Worthington’s net earnings totaled $28.9 million, a slight decline from the prior year’s fourth quarter, but a reversal from the $25.7 million loss posted in the third quarter. Net sales of $846.0 million were up 5.1 percent from the prior quarter, but down 5.1 percent from fourth-quarter 2014.
Steel Processing's net sales for the quarter declined 4 percent to $540.0 million on lower toll volume and lower average selling prices. Its operating income of $22.6 million was $10.8 million lower than the prior-year quarter due to lower toll volume and higher inventory holding losses.
"We are confident in our company's strategy to drive growth and our continuous improvement initiatives. The economy has shown some resiliency in automotive and an improving construction market, but there are other areas, like agriculture, where it is less than robust," McConnell noted. "We are seeing a more stabilized steel pricing environment."