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Worthington Reports Profitable Quarter

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Worthington Industries Inc., Columbus, Ohio, reported net sales of $958.2 million in its second quarter, an increase of 10 percent from the same quarter in the previous fiscal year. Sales declined 3 percent from the previous quarter. 

First-half net sales of $1.95 billion increased 13.3 percent from the prior year. 

Net earnings in the quarter totaled 34 million in the quarter, a slight decline from the $39.4 million in the same quarter of fiscal year 2018. First-half net earnings of $88.9 million were up 4.7 percent from the previous year. 

Gross margin for the current quarter decreased $19.1 million from the prior year quarter to $120.9 million.  The decrease was driven by compressed direct spreads in Steel Processing and lower volume and higher material and conversion costs in Pressure Cylinders.

“I am pleased with the way our teams executed in a challenging environment,” said John McConnell, Chairman and CEO.  “We faced headwinds in the quarter due to rising input costs and lower spreads in our Steel Processing business, but volumes for our key markets remained solid and our employees continue to work hard to make improvements.”

Steel Processing’s net sales totaled $635.0 million, up 18 percent from the prior-year quarter driven primarily by higher average direct selling prices. Operating income of $25.0 million was $16.1 million less than the prior year, and down $5.8 million when the sale of real estate is excluded. The division was negatively affected by an expanding gap between the cost of steel and scrap prices.  The mix of direct versus toll tons processed was 56 to 44 percent in the quarter, compared to 57 to 43 percent in the prior-year quarter.

“Despite a challenging quarter, we are making good progress on recovering margins, and anticipate continued solid end market demand," McConnell said.  “I am confident that our teams across the company are executing strategies focused on accelerating our growth, and delivering innovative solutions to our customers.”   

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