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December 02, 2008


Worthington Industries quarterly net dip by 53% YoY

Worthington Industries Inc announced results for the June to August 2007 quarter. Its June to August 2007 quarter net sales were USD 759.0 million down by 3% YoY as compared to USD 778.7 million for the first quarter of fiscal 2007. First quarter net earnings of USD 20.2 million fell by 53% YoY from first quarter 2007 net earnings of USD 43.2 million.

First Quarter 2008 Highlights
1. Quarterly net sales and operating income in the Pressure Cylinders segment represented a first quarter record of USD 136.6 million and USD 18.0 million, respectively.
2. Cash dividends received from joint ventures totaled USD 14.7 million for the quarter.
3. Cash provided by operating activities was USD 74.8 million for the first quarter of fiscal 2008. Capital expenditures were USD 16.5 million for the same period.
4. Dividends paid to shareholders totaled USD 14.5 million for the quarter. At quarter end, the dividend yielded a 3.2% annualized return.
5. During the first quarter, the company repurchased 4.2 million common shares, reducing total outstanding shares to 81.0 million at quarter end.
6. The ratio of total debt to capitalization was 27.9% at quarter end, unchanged from the year ago time period.

In the Steel Processing segment, quarterly net sales fell by 11% or USD 45.1 million to USD 355.9 million from USD 401.0 million in the comparable quarter of fiscal 2007. The decline in net sales was the result of lower average pricing down by 2%, due to a greater mix of tolling business, and lower volumes down by 9% relative to the prior year. Operating income decreased because of the combination of lower volumes and a narrower spread between selling prices and material costs compared to the first quarter of fiscal 2007.

In the Metal Framing segment, net sales decreased by 7%, or USD 14.3 million, to USD 198.1 million from USD 212.3 million in the comparable quarter of fiscal 2007. Average selling prices fell by 12%, more than offsetting an overall volume increase of 5%. Product mix worsened in the quarter as volumes increased in lower margin product lines and decreased significantly in higher margin lines, many of which serve the residential housing sector. The much narrower spread between lower selling prices and higher material costs resulted in an operating loss for the quarter.

In the Pressure Cylinders segment, net sales increased by 12%, or USD 15.1 million, to USD 136.6 million from USD 121.5 million in the comparable quarter of fiscal 2007. Increased volumes across most product lines in North America and Europe led to an increase in operating income from the prior year.