Steel Mills
Worthington Reports Best Fiscal Year in its History
Written by Tim Triplett
June 24, 2021
Worthington Industries, Inc., reported net sales for the fourth quarter of fiscal 2021 totaling $978.3 million, a 60% increase over the comparable quarter in the prior year. The increase was driven by overall volume improvements in both Steel Processing and Pressure Cylinders and higher average direct selling prices in Steel Processing, the company said.
“We had an exceptional fiscal 2021 generating record fourth-quarter and annual earnings per share,” said Andy Rose, president and CEO. “While we benefitted from rising steel prices, we also saw robust demand across most of our businesses and joint ventures.”
Steel Processing’s net sales totaled $655.2 million, up 100% over the comparable prior-year quarter when COVID-19 related shutdowns significantly reduced demand. The increase in net sales was driven by higher average direct selling prices and higher volume.
Pressure Cylinders’ net sales totaled $323.1 million, up 14% over the comparable quarter due to higher volumes in both the consumer and industrial products businesses. Operating income was up $9.3 million to $31.1 million, driven by higher volumes combined with the impact of divestitures of underperforming businesses completed earlier in the fiscal year.
Worthington’s divestitures this year included its Structural Composites Industries business in California and its LPG fuel storage business in Poland. It also sold the remaining assets of its WSP joint venture.
Earlier this month it acquired certain assets of Shiloh Industries’ U.S. BlankLight business, a provider of laser welded solutions.
Also in June, the company announced that its Pressure Cylinders segment was being divided into three new reporting segments: Consumer Products, Building Products and Sustainable Energy Solutions, effective at the start of fiscal year 2022. The three new reporting segments are in addition to the company’s Steel Processing segment.
“Our fourth quarter was a strong finish to what has been the best fiscal year in Worthington’s history,” said Rose. “Of course, we never would have predicted this a year ago when we were in the depths of the COVID pandemic, automotive manufacturing was at a standstill and we were navigating a very uncertain business environment.
“Supply chains continue to be constrained, but overall our demand levels and backlogs are quite good across almost all of our major markets. We’ve also been proactively raising prices in our downstream manufacturing businesses to offset increased raw material costs.
“We are excited to begin reporting three new segments next quarter, Consumer Products, Building Products and Sustainable Energy Solutions. This change will better align our businesses around the attractive end markets we serve and provide investors with additional insights on performance. All of these segments have tested leaders, compelling strategies and the resources they need to grow. We will continue to leverage our transformation playbook, new product development and innovation and M&A to achieve above-market growth rates and increase our return on capital.”
Worthington Industries, headquartered in Columbus, Ohio, is a leading value-added steel processor and producer of laser welded products. It is also a global supplier of pressure cylinders and accessories for applications such as fuel storage and water systems. Worthington operates 53 facilities in 15 states and seven countries.
Tim Triplett
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