Steel Markets
Worthington 3Q'23 Earnings Fall on Lower Steel Prices
March 22, 2023
Worthington Industries reported lower net earnings in its fiscal 3Q ended Feb. 28 vs. the same period a year earlier on lower steel prices.
The Columbus, Ohio-based service center and processor posted 3Q 2023 net earnings of $46.3 million, down 18% from $56.3 million a year earlier on net sales that fell 20% to $1.1 billion.
“Our teams delivered solid earnings with a nice improvement sequentially compared to our second quarter,” company president and CEO Andy Rose said in a statement.
“Steel Processing saw modest growth in automotive demand but continued to be negatively impacted by inventory-holding losses,” he added.
Worthington attributed the 20% drop in net sales primarily to lower average selling prices in the Steel Processing business “as steel prices declined significantly from the prior-year quarter.”
The company said the Steel Processing segment’s net sales totaled $757 million in 3Q, off 28% from the same quarter a year earlier.
The Building Products segment’s net sales totaled $151.9 million in 3Q, rising 14% year over year. Meanwhile, its Sustainable Energy Solutions unit’s net sales totaled $31.8 million, up 3% in the same comparison.
Looking forward, Rose said, “We have good momentum heading into our fourth quarter and are optimistic that underlying demand for our key end markets will remain healthy.”
“Higher interest rates are a potential headwind for commercial construction projects and auto financing,” Rose commented on the company’s earnings conference call on Thursday, March 23, noting, however, that “the $1.3 trillion of approved government investment spending from the Inflation Reduction Act, the CHIPS and Science Act, and the Infrastructure Investment and Jobs Act will certainly stimulate demand and likely benefit many of our businesses down the road.”
The North American industrial complex hasn’t been as impacted by higher interest rates as the tech or finance sectors have, but neither is it completely immune, Rose noted.
The company remained upbeat about its Worthington 2024 plan to split off its Steel Processing business into a distinct company by early 2024.
“We remain confident that our planned separation will create two, distinct market-leading companies that will generate long-term value for our shareholders,” Rose said.
The company announced senior leadership roles for the two new businesses, New Worthington and Worthington Steel, in early February.
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Steel Markets

Dodge Momentum Index inches down in November
The Dodge Momentum Index (DMI) slipped in November due to a general decrease in slightly weaker commercial and institutional activity, according to the latest Dodge Construction Network (DCN) data.

Carbon border tax proposed in revival of Clean Competition Act
On Dec. 6, US Senator Sheldon Whitehouse (D-RI) reintroduced the Clean Competition Act, an environmental trade directive that would impose charges on imports from more carbon-intensive manufacturers.

Global steel production inches up, China’s falls in October
Global steel output inched higher from September to October, even as production declined in China, the World Steel Association (worldsteel) said in its latest monthly report.

October US housing starts inch higher but remain down on-year
US housing starts crept higher for a second consecutive month in October. Starts were lower, however than the same month last year, according to the most recent data from the US Census Bureau.
Imports Fall in September, But Flat Rolled at Three-Month High
The decline in imports from August to September was more pronounced than license applications suggested earlier this month.