November 20, 2008

Worthington Q4 net sales up by 10% YoY

Worthington Industries Inc reported results for the three and twelve month periods ended May 31st 2008.

For the fourth quarter of fiscal 2008, net sales were a record USD 868.9 million up by 10% YoY as compared to USD 786.6 million last year. Fourth quarter net earnings were USD 53.9 million as compared to USD 38.2 million. Operating income for the fourth quarter included USD 4.9 million in pre tax restructuring charges, USD 1.1 million of which was non cash, primarily related to previously announced plant closures in the Metal Framing segment and professional fees.

For fiscal year 2008, net sales of USD 3,067.2 million up by 3% YoY as compared to USD 2,971.8 million. Net earnings were USD 107.1 million as compared to USD 113.9 million. Annual results were negatively impacted by USD 18.1 million in pre tax restructuring charges and plant closures.

Q4 and year end highlights

1. The Pressure Cylinders segment set a new quarterly record for net sales and units shipped and an annual record for net sales.

2. The Metal Framing segment returned to operating profitability for the quarter.

3. Equity income from nine unconsolidated joint ventures totaled USD 21.9 million for the quarter and USD 67.5 million for the year.

4. Cash provided by operating activities was USD 180.5 million for fiscal 2008 compared to USD 180.4 million for fiscal 2007, while capital expenditures were USD 47.5 million and USD 57.7 million for the same periods.

5. During fiscal 2008, the company repurchased 6.5 million common shares, reducing total outstanding shares to 79.3 million at year end. Currently 9.1 million shares remain authorized for repurchase.

Mr John P McConnell chairman & CEO of Worthington Industries said that “We are pleased with our excellent fourth quarter results and the year-over-year performance of our business segments, particularly the return to profitability in the fourth quarter for metal framing and the continued strong results from pressure cylinders. We also had record results from our joint venture Worthington Armstrong and also a very good quarter from Serviacero Worthington.”

Mr McConnell continued that “Across the company, we have been focused on cutting costs, expanding our market reach through new products and services and steering through a volatile and demanding steel pricing environment. We believe these efforts are helping us transform and strengthen the businesses, but we are aware of the uncertainty in some of our key markets and the potential for volatility in steel pricing throughout fiscal 2009.”