Columbus, Ohio-based Worthington Industries, Inc. reported Wednesday net earnings of $23.3 million, for its fiscal 2011 first quarter ended August 31 2010, up from $6.7 million, or a 348 percent increase during the same period last year.
John P. McConnell, Chairman and CEO of Worthington stated that "while the slowly rebounding economy helped with modestly increased volumes, steel processing had impressive results." Net sales for the first quarter ended August 31, 2010, were $616.8 million, up 48 percent from the same time last year. An overall increase in volumes had a $121.7 million positive impact on net sales as both steel processing and pressure cylinders showed improvements.
The company commented that the increase in the gross margin for the current quarter was primarily a result of increased volumes in both steel processing and pressure cylinders, in part due to acquisitions, as well as an improvement in the spread between average selling prices and the actual cost of steel. The increase was $78.9 million, or 13 percent of net sales, representing a 60 percent increase over the prior year quarter's gross margin of $49.2 million, or 12 percent of net sales.
The company's sales volumes grew 54 percent over the prior year quarter primarily in the automotive market. Steel processing's net sales of $354.9 million were up 95 percent, or $173.3 million, over the prior year quarter. Higher average selling prices also increased sales by $62.5 million.