Steel Mills
Worthington Sales Up--Profit Falls from Rebranding Charges
Written by Sandy Williams
December 19, 2013
Worthington Industries, Inc. reported net earnings of $23.0 million and net sales of $769.9 million for the second quarter of fiscal year 2014, ending November 30, 2013. Net sales increased 24 percent from the previous year and 9 percent from the previous quarter and were attributed to higher overall volumes related to new acquisitions.
Net earnings were impacted by a $30.7 million charge related to the write-off of certain trade name assets in connection with re-branding the Company’s businesses under the Worthington Industries name, as well as a gain of $2.5 million from insurance proceeds received for property damage at the company’s pressure cylinder facility in Austria.
Steel processing sales of $492.1 million were up 43 percent year-over-year from consolidation of TWB and increased sales in the auto, construction and agricultural markets.
The trade name impairment negatively impacted operating income for both Pressure Cylinders and Engineered Cabs. Recent acquisitions drove pressure cylinders sales up 3 percent from the preceding year for net sales of $214 million. Engineered Cab net sales were down 17 percent year-over-year to $47.9 million.
Worthington did not provide an earnings forecast for third quarter.
“We had a very good second quarter with strong results from Steel Processing and solid results from Pressure Cylinders and our joint ventures,” said John McConnell, Chairman and CEO. “We are now positioning our businesses under one single brand, Worthington Industries. The Company is growing organically and through acquisitions, providing us with new platforms and new markets. As a result, we want to make sure our brand is front and center for our customers and shareholders.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.
August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.
TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.
Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.
ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.