Worthington Industries reports net earnings for fiscal 2010 fourth quarter

Wednesday, 30 June 2010 01:42:00 (GMT+2)

Columbus, Ohio-based metals manufacturer Worthington Industries, Inc. Tuesday reported net sales of $626.4 million, and net earnings of $33.1 million for the fiscal 2010 fourth quarter ended May 31, 2010. In comparison, the company reported a net loss of $13.7 million in last year's fourth quarter.

For the fiscal year ended May 31, 2010, the company posted net earnings of $45.2 million.  Sales were down 26 percent from the prior year to $1,943.0 million, primarily due to the reduction in sales volumes in the metal framing segment and a 24 percent decrease in the average market price of steel. Fiscal 2010 earnings were reduced by goodwill impairment, restructuring and certain legal charges totaling $31.0 million.

"I am very pleased with our strong fourth quarter results," said John P. McConnell, Chairman and CEO. "The recession has made the past two years very difficult, but I believe we are a better company today because of the way we have responded. I am proud of all Worthington employees for their hard work and commitment in putting us on a much improved track. While our sales were down compared to last year, we improved our bottom line. We are growing the profit potential of existing businesses, investing in higher value-added businesses, and working to reduce our earnings volatility.

"Steel Processing continues to show marked improvement in its operations, despite lower but improving volumes," McConnell continued.  "Pressure cylinders had a very strong quarter in North America across many of its product lines with some modest improvements showing up in results from the European operations. Metal Worthington Industries Framing has worked diligently to remain cash neutral while market conditions continue to deteriorate. While we expect additional operating improvements to match existing market conditions in our traditional markets for Metal Framing, we have separately launched efforts to identify opportunities in new markets abroad."

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