Steel Mills

Worthington Industries Posts Solid Second Quarter Despite Reduced Volumes
Written by Sandy Williams
December 17, 2015
Worthington Industries posted net sales of $699.8 million and net earnings of $23.2 million for second quarter 2016 ending November 30, 2015. CEO John McConnell called it a “solid performance for the quarter in the face of some market weakness.”
Sales were down 19.7 percent compared to the prior year’s second quarter as result of overall lower volumes, lower average selling prices in Steel Processing and a change in product mix in Engineered Cabs.
“We have responded to the softer markets by lowering manufacturing costs to help improve results in those businesses.” McConnell added, “The majority of our joint ventures delivered good results in the quarter.”
Gross margin declined $16.0 million from the prior year quarter to $109.2 million due to lower volume, partially offset by lower manufacturing expenses and a favorable pricing spread.
Steel Processing net sales fell 15 percent from the prior year due to lower volume and lower average selling prices.
Pressure Cylinders net sales were down 20 percent to $201.2 million driven by a 65 percent decrease in the Oil and Gas Equipment business and the disposition of its Mississippi facility in May.
Engineered Cabs sales were down 44 percent y/y for an operating loss of $4.3 million, a decrease of $1.3 million from the previous quarter due to reduced manufacturing and SG&A expenses.
During the quarter, Worthington completed the acquisition of Taylor Wharton’s global CryoScience business and manufacturing facility in Theodore, Ala.
“Our legacy businesses are performing well despite some market softness and challenging conditions in steel pricing,” said McConnell.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

SSAB cites US strength but flags tariff-driven uncertainty
The Americas segment of Swedish steelmaker SSAB delivered a stable third quarter, but with weaker shipments and continuing cautious demand. Plate prices held, but tariffs, slowing end-user demand, and...

AHMSA drama deepens as drawn-out bankruptcy slowly progresses
A former CEO goes to court for swiping tin. An OEM distributor slams the bankruptcy trustee for failing workers and creditors. The steelmaker fires back. Angry employees demand back pay as tensions rise in Monclova's steel saga.

Cliffs aligns with US critical mineral policy, moves forward with DOE-funded projects
Cleveland-Cliffs is positioning itself as a key player in America’s push for industrial independence.

SDI execs tout progress on Mississippi biocarbon facility
SDI shipped the first product from its biocarbon facility in Columbus, Miss., in September as the project continues to accelerate.

SDI profits soar in Q3’25 amid ‘record’ steel shipments
Steel Dynamics Inc.’s third-quarter profits jumped year over year as the company saw “record” quarterly steel shipments