Steel Products
Worthington Reports Rise in Net Sales & Earnings
Written by John Packard
January 4, 2013
Written by: Sophia Fain
Worthington Industries, Inc. reported net sales of $622.6 million, up 10 percent from the previous year as well as net earnings up almost $20 million from 2Q12 to $31.8 million for the 2Q13 ended November 30, 2012.
“We had strong performances from most of our businesses in the second quarter, with volume increases in Pressure Cylinders, and a steady performance from Steel Processing, offset by softness in Engineered Cabs,” said John McConnell, Chairman and CEO. “Our year-over-year performance improved despite declining steel prices, thanks to contributions from recent acquisitions. We are very pleased with the results of our latest acquisition, Westerman, whose products include tanks for use in on-site production in shale drilling activity.“
Steel Processing’s net sales dropped 9 percent y-o-y to $339.3 million for 2Q13 due to low prices and volumes. The mix of direct versus toll tons processed was 55 percent to 45 percent this quarter, compared with a 51 percent to 49 percent mix in the 2Q12.
Pressure Cylinders’ net sales gained 17 percent y-o-y to $207.5 million due to acquisitions. The Engineered Cabs segment reported net sales of $57.8 million, which were impacted by lower volumes from production delays and several top customers experiencing slower growth, according to the company.
“We expect to see the normal seasonality in our traditional markets in the third quarter,” McConnell said. “We do think that the delay by lawmakers in addressing the country’s fiscal crisis has resulted in a pullback in some areas of the economy. While this may impact some of our cyclical businesses, we continue to anticipate good performance in our higher growth cylinder operations serving retail, alternative fuels and energy markets.” (Source: Worthington Industries, Inc.)
John Packard
Read more from John PackardLatest in Steel Products
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]
Drilling activity slows in the US, grows in Canada
Oil and gas drilling activity was mixed this week, according to Baker Hughes. US totals slipped for a sixth straight week, while Canada saw a slight bump in activity.
Commerce finds no Korean OCTG shipments below market value
US Department of Commerce (Commerce) review found no South Korean oil country tubular goods (OCTG) exporters or producers sold products below market value
Drilling activity slows further in US and Canada
Oil and gas drilling activity declined again this week in both the US and Canada, according to Baker Hughes.
SMU Community Chat: Zekelman calls for more support for steel consumers
“Unless the administration actually gets serious about levelling the playing field… for consumers of steel, then everything they've done on the steel side is useless."