Worthington’s earnings rise in fiscal Q1 despite lower steel prices

Thursday, 27 September 2012 01:57:58 (GMT+3)   |  
       

On Wednesday, steel processor Worthington Industries, Inc. reported net sales of $666 million and net earnings of $34 million for its fiscal 2013 Q1 ended August 31, 2012. For last year's first quarter, the company reported net sales of $602.4 million and net earnings of $25.7 million. Net sales were up 11 percent from the comparable quarter in the prior year, when net sales were $602.4 million. Of the increase, $112.0 million related to increased volume, which includes $87.5 million from the combined acquisitions of Angus Industries, reported under the Engineered Cabs segment, and the acquisitions in Pressure Cylinders. The increase in volume was partially offset by lower average selling prices, primarily in Steel Processing, which were affected by the declining market price of steel.

Steel Processing's net sales of $380.0 million were down 7 percent, or $28.2 million, from the prior year quarter. Lower average selling prices decreased net sales by $42.6 million, while a change in product mix favorably impacted net sales by $14.4 million. The mix of direct versus toll tons processed was 54 percent to 46 percent this quarter.

Pressure Cylinders' net sales of $194.2 million were up 15 percent from the comparable prior year quarter aided by recent acquisitions. Pressure Cylinders' operating income was $15.0 million, up $3.1 million from the prior year quarter, which included a $4.4 million non-recurring legal dispute benefit.

The entities included in "Other" are the Construction, Energy and Steel Packaging operating segments, as well as other non-allocated expenses. Operations in "Other" reported net sales of $27.3 million, which was $1.9 million higher than in the prior year quarter mostly due to our Military Construction business.


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