Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/005dfddb94b05b5a3bb7a1c45daf58ab.jpg)
Sales Up, Earnings Down at Worthington
Written by Tim Triplett
July 5, 2018
Worthington Industries, Inc., the Columbus, Ohio, steel processor and manufacturer, reported net sales of $3.6 billion and net earnings of $194.8 million for its 2018 fiscal year ended May 31. While the company’s sales increased by 19 percent over the prior year, its earnings showed a decline from the $204.5 million in fiscal 2017. Improved sales were driven by the June 2, 2017, acquisition of Amtrol and higher average direct selling prices in Steel Processing. Amtrol is a manufacturer of pressure cylinders and water system tanks with operations in the U.S. and Europe.
“We had a strong finish to our fiscal year, with record earnings per share for the fourth quarter after adjustments,” said John McConnell, Chairman and CEO. Worthington reported net sales of $1.0 billion and net earnings of $30.8 million for its fiscal 2018 fourth quarter, an improvement from sales of $845.3 million and net earnings of $56.5 million in the prior-year quarter.
By segment in the fourth quarter, Worthington Steel Processing’s net sales totaled $652.8 million, up 12 percent over the comparable quarter last year, driven by higher average direct selling prices, partially offset by lower tolling volumes at certain consolidated joint ventures. Operating income of $47.6 million was $6.6 million less than the prior year.
Pressure Cylinders’ net sales totaled $340.0 million, up 47 percent over the comparable prior-year quarter due to contributions from the Amtrol acquisition and higher volumes across the industrial and consumer products businesses.
Engineered Cabs’ net sales totaled $27.2 million, down 9 percent from the prior-year quarter on lower volume. The segment reported an operating loss of $5.3 million due to higher manufacturing costs and unfavorable margins.
“Our three-tiered strategy of growing through transformation, acquisition and innovation has proven successful,” said McConnell. “We expect to continue our balanced approach to investing in our business, acquiring new businesses and returning capital to shareholders through dividends and share repurchases.”
In response to its strong performance for the year, and savings from tax reform, Worthington rewarded its employees with a one-time bonus of $1,000.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/tim-triplett.jpeg)
Tim Triplett
Read more from Tim TriplettLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Cliffs_logo2.2.png)
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.