Distributors/Service Centers
December 26, 2023
Worthington Steel's earnings improve on increased sales volumes
Written by Becca Moczygemba
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% |
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.
