Worthington Earns $115 Million for Fiscal Year
Worthington Industries Inc., Columbus, Ohio, reported net earnings of $51.9 million for its fiscal fourth quarter, contributing heavily toward a profitable year. Sales for the quarter totaled $675.7 million. Both net earnings and net sales were up from the same period in 2010. Net earnings jumped 57 percent from a year ago, while net sales were up 7.8 percent.
For the year, Worthington reported net earnings of $115 million, more than double the $45 million the company earned in its previous fiscal year. Net sales for the 12 months were up 25.7 percent to $2.4 billion.
The sales increases were attributed to volume improvements in both the company’s Steel Processing and Pressure Cylinder segments. A 24 percent increase in the average market price of steel also contributed to the return.
“I am very pleased with the performance of our company in the fourth quarter and throughout our 2011 fiscal year,” Chairman and CEO John McConnell said. “Both of our main businesses, Steel Processing and Pressure Cylinders, had excellent fourth-quarter results.
The company closed on two significant transactions during the fourth quarter, contributing assets and operations of its Metal Framing and Automotive Body Panels businesses to two separate joint ventures.
Steel Processing’s net sales of $431.7 million were up 23 percent, or $82.1 million, over the prior-year quarter. Higher average selling prices increased sales by $47.2 million and higher volumes increased sales by $34.9 million.
Sales volumes grew 20 percent over the prior-year quarter and 31 percent vs. the previous quarter due to the acquisition of MISA Metals’ steel processing assets. The mix of direct vs. toll tons processed was 53 percent to 47 percent this quarter, compared with 58 percent to 42 percent a year ago.
Pressure Cylinders’ net sales of $183.7 million were up 27 percent from the year-ago quarter. Metal Framing’s net sales of $6.6 million were down 92 percent, or $80.5 million, as a result of the contribution of its operations into the new ClarkDietrich Building Systems joint venture, in which Worthington retains a 25 percent interest.
“We believe we will continue to see a slowly improving yet uneven economy for the rest of this calendar year and on into 2012,” McConnell said. “We intend to continue to capitalize on opportunities to grow and deliver sustainable earnings. We have made significant improvements in our businesses over the past years in how we respond, deliver and perform. While we stay focused on those areas, we also plan to integrate new businesses into our platform for growth.”