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Worthington Steel profits fall amid lower prices, volumes

Written by Ethan Bernard

September 26, 2024

Worthington Steel Inc.

First quarter ended Aug. 3120242023Change
Net sales$834$905.8-7.9%
Net earnings (loss)$28.4$58.5-51.5%
Per diluted share$0.56$1.19-52.9%
(in millions of dollars except per share)

Worthington Steel’s earnings tumbled in the first quarter of its 2025 fiscal year. The company cited a drop in selling prices and tons sold for the sales dip in the three months ended Aug. 31.

The Columbus, Ohio-based steel processor posted net earnings attributable to controlling interest of $28.4 million in fiscal Q1’25, down 52% from $58.5 million a year earlier. In the same period, sales fell 8% to $834 million.

“The first quarter of fiscal year 2025 was solid for Worthington Steel despite some headwinds,” Geoff Gilmore, president and CEO of Worthington Steel, said in a statement on Wednesday.

“Demand is stable and we continue to deliver unique, custom, value-added solutions for our customers by transforming metals, providing light-weighting solutions and supporting electrification,” he added.

Worthington said direct selling prices slipped 6% in the quarter, direct tons sold fell 4%, and toll tons sold dropped 2% from the year-ago quarter.

Additionally, the mix of direct compared with toll tons processed was 56% to 44% in Q1’25 and the prior year quarter, with a more favorable mix this year within toll tons sold.

Capital expenditures for the quarter totaled $21.5 million vs. $17.3 million a year earlier. The increase was related to previously announced expansions of the company’s electrical steel operations in Mexico and Canada. 

Worthington Steel operates 32 facilities in seven states and six countries. 

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

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