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Worthington Industries reports Q3 results

Steel News - Published on Thu, 28 Mar 2019

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Worthington Industries Inc has reported net sales of USD 874.4 million and net earnings of USD 26.8 million for its fiscal 2019 third quarter ended February 28, 2019. The current quarter was negatively impacted due to a replacement program related to certain composite hydrogen fuel tanks, resulting in a pre-tax charge of USD 13.0 million. In addition, the current quarter included estimated inventory holding losses of USD 10.8 million in Steel Processing and a pre-tax net restructuring gain of USD 11.2 million related to the sale of certain assets in the Pressure Cylinders business. In the third quarter of fiscal 2018, the Company reported net sales of USD 841.7 million and net earnings of USD 79.1 million and included a significant one-time benefit from the Tax Cuts and Jobs Act

Steel Processing’s net sales totaled USD 555.9 million, up 7%, or USD 37.8 million, over the comparable prior year quarter driven by higher average direct selling prices, partially offset by lower direct volume. Operating income of USD 10.2 million was USD 20.9 million less than the prior year quarter on lower direct spreads, which were impacted by significant inventory holding losses in the quarter and continue to be negatively impacted by an expanding gap between the cost of steel and scrap prices, combined with lower direct volume. The mix of direct versus toll tons processed was 57% to 43% in both the current and prior year quarters.

Pressure Cylinders’ net sales totaled USD 290.7 million, down 2%, or USD 4.8 million, from the comparable prior year quarter due to the impact of divestitures and lower volumes in the industrial products business, partially offset by higher volumes in the consumer products business. Operating income of USD 19.0 million increased USD 1.5 million over the prior year quarter. The improvement was the result of an USD 11.2 million net restructuring gain, primarily related to the sale of the Company’s solder business and certain brazing assets, combined with improvements in the oil and gas business, which were almost offset by the USD 13.0 million charge for the tank replacement program and the impact of lower volumes in the industrial products business and increased input costs in the consumer products business.

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Posted By : Rabi Wangkhem on Thu, 28 Mar 2019
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