Steel Mills

Worthington Posts Lower Profits on Inventory Holding Losses
Written by Michael Cowden
June 22, 2022
Worthington Industries reported sharply lower profits for both its fiscal 2022 fourth quarter and its full fiscal year ended May 31, 2021.
The Columbus, Ohio-based manufacturer and service center said the drop resulted partly from inventory holding losses at its steel processing division.
All told, Worthington reported net earnings of $80.3 million in its fiscal Q4’2022, down 29% from $113.6 million in fiscal Q4’2021 despite net sales rising 55% to $1.52 billion in the same period.
For the entire fiscal year 2022, the company reported net income of $399.3 million, down 46.1% from $741.5 million in fiscal 2021 even as sales rose 65% to $5.24 billion in the same comparison.
“Steel Processing was negatively impacted by inventory holding losses in the fourth quarter, but our Building Products and Consumer Products segments both continued to perform exceptionally well,” Worthington president and CEO Andy Rose said in comments released with earnings data after the close of markets on Wednesday, June 22.
Worthington’s Steel Processing division recorded adjusted earnings before interest and taxes (EBIT) of $16.5 million in FY Q4’22, down $81.3 million from FY Q4’21. The main reason: an inventory holding loss of $42.3 million in FY Q4’22 compared to inventory holding gains of $50.5 million in FY Q4’21.
Worthington said it ended FY Q4’22 with $34.5 million in cash, down $605.8 million from a year earlier because of acquisitions and an increase in working capital resulting from higher steel prices.
Rose put a positive spin on the outlook for Worthington’s 2023 fiscal year: “While the business environment continues to be challenging and there is some level of economic uncertainty, our teams are performing at a high level, and we remain optimistic about demand in our key end markets.”
By Michael Cowden, Michael@SteelMarketUpdate.com

Michael Cowden
Read more from Michael CowdenLatest in Steel Mills

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

Steel Summit: Burritt says USS and Nippon are fast-tracking modern steelmaking
U.S. Steel President and CEO David Burritt told audiences at SMU's Steel Summit 2025 that the iconic American steelmaker’s partnership with Nippon Steel is fast-tracking smarter steel production.

Nucor moves to stop HRC price slide with $10/ton hike
Nucor is attempting to halt the decline in hot-rolled coil prices with the announcement of a $10-per-short-ton increase in its weekly consumer spot price on Monday.

Explosion rocks ArcelorMittal’s DR plant in Mexico
ArcelorMittal reported a "strong" explosion at the direct reduction part of its massive Lazaro Cardenas mill in Mexico.

SDI to acquire remaining stake in New Process Steel
Steel Dynamics Inc. (SDI) announced that it has agreed to acquire the remaining 55% equity interest in New Process Steel.