Columbus, Ohio based steel service center Worthington Industries Inc. on Wednesday reported net sales of $448.0 million and net earnings of $23.2 million for the fiscal 2010 second quarter ended November 30, 2009.
Worthington says its results show significant sequential improvement from the first quarter with increased margins due to higher steel prices, tighter cost controls, improved inventory management and operational efficiencies particularly evident in the company's steel processing segment, its largest division. In last year's second quarter, the company posted a net loss of $164.7 million.
"We had a very good quarter driven by improved volumes and spreads in Steel Processing and the benefits of our Transformation efforts," said chairman and CEO John P. McConnell. "Over the past two years, we have reduced costs, resized our businesses, reduced debt and conserved cash across the company to produce positive results in a down cycle. Pressure Cylinders had a steady performance driven by good results in North America, where its retail products are performing well. It's a different story in Europe, where depressed industrial markets are holding back Cylinders' overall results."
McConnell added, "Volume difficulties continue for our Metal Framing business due to the ongoing downturn in the commercial construction markets. This business continues to make progress in its Transformation efforts and we are focused on remaining cash neutral this fiscal year, by keeping costs low, implementing operational efficiencies, and aggressively pursuing building projects with our value- added products."
Regarding the company's outlook for the next quarter, McConnell stated, "Reiterating what we stated at the end of our first quarter, we continue to operate in a historically low demand environment. While we are generally optimistic about the gradual return of the economy, we do not believe we will know how quickly our markets will rebound until the end of the third quarter, at the earliest," McConnell stated.
Worthington Industries Inc. is North America's premier value-added steel processor and a leader in manufactured metal products such as light gauge steel framing for commercial and residential construction; framing systems and stairs for mid-rise buildings; pressure cylinders products such as propane, oxygen and helium tanks, hand torches, camping cylinders, and scuba tanks; current and past model automotive service stampings; metal ceiling grid systems; steel pallets and racks; and laser welded blanks. Worthington employs approximately 6,300 people and operates 61 facilities in 11 countries.