Worthington Industries Inc has announced net sales of USD 666 million and net earnings of USD 34 million or USD 0.49 per share for its fiscal 2013 first quarter ended August 31st 2012. For last year's first quarter, the company reported net sales of USD 602.4 million and net earnings of USD 25.7 million or USD 0.35 per share.
Net sales for the first quarter ended August 31s 2012 were USD 666 million, up by 11% YoY from the comparable quarter in the prior year, when net sales were USD 602.4 million. Of the increase, USD 112 million related to increased volume, which includes USD 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.
Gross margin for the current quarter was USD 93.7 million as compared to USD 71.5 million in the prior year quarter. The USD 22.2 million increase was mainly the result of the acquisitions and a more favorable product mix.
SG&A expense increased USD 14.1 million over the prior year quarter driven by the impact of acquisitions and reduced expenses in the prior year quarter of USD 4.4 million from the favorable settlement of a legal dispute.
Operating income for the current quarter was USD 33.4 million, compared to USD 21.2 million in the prior year quarter. The USD 12.2 million increase is mostly due to acquisitions and the USD 4.1 million reduction in the net losses from impairments, restructuring charges and joint venture transactions. In the current quarter, we incurred a USD 1.6 million charge related to certain impaired assets in Pressure Cylinders, USD 0.4 million in restructuring charges, and USD 1.2 million in gains related to asset sales from the joint venture transactions.
Interest expense was USD 5.3 million in the quarter, compared to USD 4.7 million in the comparable period in the prior year primarily due to the impact of higher average debt levels.
Equity in net income from unconsolidated joint ventures was USD 22.6 million, a decrease of USD 2.1 million from the comparable quarter in the prior year, on sales of USD 446.9 million. In the current quarter, WAVE contributed USD 18.4 million of earnings and TWB contributed USD 2.6 million, with the balance of USD 1.6 million from the remaining joint ventures.
For the current quarter, income tax expense of USD 16.1 million increased from USD 13.3 million in the prior year quarter due primarily to higher earnings. The current quarter income tax expense reflects an estimated annual effective tax rate of 32.6% compared to 32.4% for the prior year quarter.
Financial highlights for the current and comparative periods are as follows:
| Q1 '13 | Q4 '12 | QoQ | Q1 '12 | YoY | |
| Net sales | 666 | 755.4 | -11.8 | 602.4 | 10.6 |
| Operating income | 33.4 | 59.5 | -43.9 | 21.2 | 57.5 |
| Equity income | 22.6 | 22.2 | 1.8 | 24.7 | -8.5 |
| Net earnings | 34 | 52.1 | -34.7 | 25.7 | 32.3 |
| Earnings per share | 0.49 | 0.75 | -34.7 | 0.35 | 40.0 |
In USD millions, except per share data
Mr John McConnell chairman & CEO of Worthington Industries said that "I am pleased with the results of our first quarter. Steel Processing, while still benefiting from automotive demand, experienced declining steel pricing during the quarter. Pressure Cylinders had strong volume in its product lines and increased demand in the alternative fuel business and Engineered Cabs delivered good results."
He added that "We continue to position the company to grow both organically and by adding new businesses."
Source - Worthington Industries
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