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.
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