Sept. 30, 2015
Worthington's Sales, Earnings Dip in First Quarter
Worthington Industries, Inc., Columbus, Ohio, reported net earnings of $31.4 million during the company’s first quarter, which ended Aug. 31. Earnings were down 29.0 percent from the same quarter in 2014.
Worthington’s net sales totaled $758.1 million during the quarter, down 12.1 percent from last year. The decrease was driven by lower volume in all business segments, combined with lower average selling prices in Steel Processing.
“The company generated solid earnings and free cash flow in our first quarter despite some challenging end markets,” John McConnell, chairman and CEO, told investors and analysts during the company’s quarterly conference call. “Declining steel prices continued to hamper our earnings in Steel Processing, but our team performed well, generating steady volume, led by the heavy-duty truck market.”
Steel Processing’s net sales of $490.8 million were down 11 percent from the comparable prior-year quarter on lower toll volume and lower average selling prices. Operating income of $23.6 million was $12.3 million lower than the same quarter in 2014 due primarily to the unfavorable impact of inventory holding losses and lower toll volume. The Rome Strip Steel facility acquired in January continues to perform well, providing additional volume and operating income, McConnell said.
“In the face of challenging markets, we are pleased with the company’s performance, and we are optimistic about our momentum going into the next quarter,” McConnell said. "However, we are mindful of the uncertainty of the macroeconomic issues.”