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Worthington Steel's earnings improve on increased sales volumes

December 26, 2023

Worthington Steel

Second quarter ended Nov. 30	2024	2023	% Change
Net sales	$808	$868.4	-7.0%
Net earnings (loss)	$(2.1)	$(12.5)	83.2%
Per diluted share	$(0.12)	$(0.32)	62.5%
Six months ended Nov. 30
Net sales	$1,713.8	$1,943.0	-11.8%
Net earnings (loss)	$60.0	$18.8	219%
Per diluted share	$1.07	$0.29	269%

(in millions of dollars except per share)

The newly separated Worthington Steel noted improved earnings in its results for the fiscal second quarter, which ended on Nov. 30.

Formerly part of Worthington Industries, the Columbus, Ohio-based processor attributed the 7% decrease in net sales to a decline in selling prices. However, lower sales prices were slightly offset by a 4.4% increase in direct tons sold this quarter versus the same quarter one year ago.

“It’s an exciting time to be at Worthington Steel. As we begin our journey as a standalone company, our team is experienced, energized and focused on our customers and shareholders,” commented Worthington Steel’s President and CEO Geoff Gilmore in an earnings release.

All told, Worthington posted a net loss of $2.1 million in the quarter ended Nov. 30, an 83% improvement from the same period in 2023 (see chart above).

Worthington also highlighted its acquisition of a Voestalpine Automotive facility in Nagold, Germany. The acquisition led to $21 million in cash acquired and $20.4 million in net assets acquired (subject to closing adjustments).

The acquisition establishes a footprint in Europe for Worthington and will allow the company to capitalize on the growing EV and industrial motor markets in the region, it said.

Becca Moczygemba

Becca Moczygemba is a reporter and editor for Steel Market Update. She has been in the steel industry since 2017, specializing in flat-rolled products. Prior to joining SMU, she held positions at Mitsui & Co. and Kloeckner Metals. Becca has a BA in Organizational/Corporate Communication from the University of Houston and an MBA from Norwich University. Contact Becca at becca@steelmarketupdate.com or 724-720-1000.