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Worthington’s Full-Year Earnings Decline

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Worthington Industries Inc., Columbus, Ohio, reported full-year net earnings of $194.8 million, a decrease of 4.9 percent compared with the prior year. Net earnings in the company’s fourth quarter totaled $30.8 million, down from $56.5 million in the same quarter of the prior fiscal year.

Net sales for the fiscal year totaled $3.6 billion, a 19 percent increase compared with the previous fiscal year. Fourth-quarter net sales of $1 billion were up 18.3 percent from the fourth quarter of the prior year.

“We had a strong finish to our fiscal year, with record earnings per share for the fourth quarter after adjustments,” said John McConnell, chairman and CEO. "Because of our company’s strong performance, we are sharing a portion of the tax reform savings with our employees in a one-time $1,000 bonus.”  

Steel Processing’s net sales totaled $652.8 million, up 12 percent, or $70.6 million, over the comparable prior-year quarter, driven by higher average direct selling prices, partially offset by lower tolling volumes at certain consolidated joint ventures. Operating income of $47.6 million was $6.6 million less than the prior-year quarter as lower tolling volume, compressed direct spreads, the impact of transitional hedging programs and lower scrap reimbursement rates more than offset higher inventory holding gains and higher direct volume.

The company’s mix of direct versus toll tons processed was 59 percent to 41 percent, up from the 54-46 spread in the prior-year quarter.

“Our three-tiered strategy of growing through transformation, acquisition and innovation has proven successful,” said McConnell. “We expect to continue our balanced approach to investing in our business, acquiring new businesses and returning capital to shareholders through dividends and share repurchases.”