Steel Mills
Worthington Reports 32% Increase in Construction Shipments
Written by Sandy Williams
March 23, 2016
Worthington Industries reported net sales of $647.1 million for third quarter 2016, ending February 29. Sales were down from second quarter and year over year as a result of lower volume in Pressure Cylinders and Engineered Cabs, combined with lower average selling prices in Steel Processing due to a decline in the market price of steel.
Net earnings were $29.6 million up from $23.2 million in second quarter and a loss of 25.7 million in Q3 2015.
Steel processing operating income was up $6 million from the previous year due to improved inventory management and modest hedge gains that were offset by lower tolling volume at the Spartan JV.
Steel processing shipment volume was down 4 percent but better than MSCI data that declined 7 percent for the same period. Growth of service center shipments slowed in the quarter. Construction shipments were up 32 percent and automotive 3 percent.
Mark Russell, President and Chief Operating Officer attributed the variance from MSCI data to strength in construction and margin improvement due to trade case decisions.
“As you know, the trade case have come through on coated products first and that kind of widened the spread between coated and hot-rolled and cold-rolled,” said Russell. “And we have hot-roll-based galv and cold roll-based galv both. And those wide spreads helped us win market share, I think, in the construction market.”
John McConnell, Chairman and Chief Executive Officer commented, “We definitely see that the trade cases have an immediate effect on market sentiment.”
Heavy truck and agriculture were Worthington’s weakest market in Q3. Industrial products were up by 2 percent and consumer products down 5 percent.
The oil and gas equipment market continues to decline, said Russell, with limited short term capital purchases by major producers.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Hot-rolled coil market remains slow, market participants say
Hot rolled spot market participants reported another week of moderate demand and ample supply, with no strong signs that conditions will change next week.
CRU: Blackout knocks out ArcelorMittal mill ‘for months’
Truchas works in Lazaro Cadenas, Michoacan, western Mexico. Repairs may take up to six months.
Nippon Steel posts quarterly loss on cost to buy U.S. Steel
Nippon Steel earnings take hit from buy of U.S. Steel.
Atlas completes Evraz NA deal, renames firm, and hires former USS exec as CEO
Atlas Holdings has completed its acquisition of Evraz North America (Evraz NA) and its subsidiaries.
ArcelorMittal: As tariffs slow global growth, Calvert could be a bright spot
ArcelorMittal expects less demand growth across most of the markets it operates in, including the US, because of President Donald Trump’s tariffs. But the Luxembourg-based steelmaker also thinks it stands to benefit from an increasingly regionalized world thanks to investments like the new EAF at its mill in Calvert, Ala.