Worthington Reports Rise in Net Sales & Earnings

“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.)