Worthington Industries Inc., Columbus, Ohio, reported net sales of $5.2 billion in its fiscal year 2022, a 65 percent increase from the prior year. Net earnings, however, were down 46 percent from the prior fiscal year to $80.3 million.
In the fourth quarter, Worthington’s net sales totaled $1.5 billion, up 55.4 percent from the same quarter in the previous fiscal year. Net earnings dipped 29.3 percent to $80.3 million.
“We finished our 2022 fiscal year with strong results in the fourth quarter and delivered record earnings per share for the full year,” said Andy Rose, president and CEO. “Steel Processing was negatively impacted by inventory holding losses in the fourth quarter but our Building Products and Consumer Products segments both continued to perform exceptionally well, as our investments in new product development and production capacity are positively impacting our results.”
Steel Processing’s net sales totaled $1.1 billion, up $464.6 million, over the prior-year quarter. The increase in net sales was driven by higher average selling prices and, to a lesser extent, the impact of acquisitions. Adjusted EBIT was down $81.3 million from the prior-year quarter to $16.5 million, as the favorable impact of acquisitions and higher selling prices was more than offset by inventory holding losses, estimated to be $42.3 million in the current quarter compared to estimated inventory holding gains of $50.5 million in the prior-year quarter.
The mix of direct versus toll tons processed was 56 to 44 percent in the current quarter, compared to 48 to 52 percent in the prior year quarter.
“We are well positioned heading into our new fiscal year with solid business strategies to drive growth through transformation, innovation, and M&A,” Rose said. “While the business environment continues to be challenging and there is some level of economic uncertainty, our teams are performing at a high level, and we remain optimistic about demand in our key end markets and our ability to execute effectively going forward.”