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Worthington Reports Profitable Year

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Worthington Industries Inc., Columbus, Ohio, reported net sales of $3.8 billion in fiscal 2019, a 4.9 percent increase compared with the prior year. Net earnings of $153.5 million declined 21.2 percent to $153.5 million.

For the fourth quarter, net sales totaled $938.8 million, a slight decline from the same quarter in 2018. Net earnings of $37.7 million increased and net earnings totaled $37.7 million, a 22.4 percent increase.
 
“We finished our 2019 fiscal year with solid results in the fourth quarter despite a challenging steel pricing environment,” said John McConnell, chairman and CEO.  “Margins across all of our businesses improved from the third quarter, particularly in Pressure Cylinders.”
 
In the quarter, Steel Processing’s net sales totaled $584.4 million, down 10 percent from the comparable prior-year quarter, driven by lower direct volumes, partially offset by higher selling prices. Operating income of $14.9 million was $32.7 million less than the prior-year quarter on the combined impact of lower direct volumes and a compressed pricing spread driven by inventory holding losses versus prior-year holding gains. The mix of direct versus toll tons processed was 55 to 45 percent in the quarter, compared to 59 to 41 percent in the prior-year quarter.

“As we enter our new fiscal year, we expect to see continued positive momentum from our three-tiered strategy of growth through transformation, innovation and acquisitions,” said McConnell.  “While we expect steel pricing and a softening automotive market will continue to be headwinds, our growth levers combined with investments in technology have us positioned well to deliver on our goal of year-over-year earnings growth,” McConnell said.