Columbus, Ohio-based steel processor Worthington Industries Inc. reported Wednesday a $13.7 million loss for its fourth fiscal quarter ended May 31, as low sales volumes and weak steel demand heavily impacted the company's bottom line. A year ago, Worthington earned a profit of $453.9 million.
The company said that its steepest decline in this year's Q4 came from its steel processing segment, whose sales were off 57 percent from last year, in large part due to a drastic drop in demand from its
automotive customers. Worthington's other main business segments include metal framing and pressure cylinders.
Worthington said its full-year loss hit $108.2 million, compared with profit of $107.1 million in fiscal 2008. Revenue for the year fell 14 percent to $2.63 billion from $3.07 billion.
“The last nine months of our fiscal year were very difficult as the global economy plunged into deep recession,” stated John P. McConnell, chairman and CEO. “In Steel Processing, volume contraction appears to be at or near bottom. Metal Framing is likely to face continued declines in its market, but we remain focused on keeping this business cash neutral in the coming year.”
Mr. McConnell also said that the company has made drastic restructuring moves in the 2009 fiscal year, including cutting 1,200 jobs, or 20 percent of its workforce, along with the idling and closing of some plants. For the fiscal year beginning June 1, the company has implemented salary reductions ranging from three to 20 percent.