Gilmore upbeat on year two as standalone Worthington Steel

The Columbus, Ohio-based metals processor completed its spinoff into a standalone company on Dec. 1, 2023. (The other company is Worthington Enterprises, a Columbus-based designer and manufacturer of building products, consumer products, and sustainable energy solutions.)

“We have already accomplished so much in a relatively short period of time,” Gilmore continued. “We have strong customer relationships, an experienced leadership team, and a sound strategy.”

He said the company saw some “sizable headwinds” during the quarter ended Nov. 30 in several markets, including automotive, construction, and heavy trucks.

“Some of these headwinds may persist for the next few quarters, especially in the automotive market,” he noted.

However, he said lower interest rates and inflation could offset the headwinds.

“We saw some positive signs in November when overall US vehicle sales reached their highest levels since May of 2021,” commented Gilmore.

Lower interest rates and decreased inflation could also provide improved momentum for the construction sector.

“We continue to expect moderate growth in the construction market areas we supply, such as data centers and manufacturing, in calendar year 2025,” Gilmore said.

Still, he expects the heavy truck market will remain slow in the first half of 2025, “but we believe regulatory requirements will help fuel growth in the second half of the year and into 2026.”

Tim Adams, VP and CFO, also noted, “I think ag is going to continue to have some challenges throughout the year, again, with interest rates still being relatively high and commodity prices being relatively low.”

N. American trading bloc in Trump 2.0

There have been rumblings from President-elect Trump of additional tariffs on Canada and Mexico.

When asked about this, Gilmore said, “I guess, I’d be a bit surprised if we see that aggressive position on Mexico and Canada.”

“We’ve been under a Trump administration and he wants to negotiate. I think that administration has certain things they’d like to see Canada and Mexico tighten up on. And at the end of day, I think they’ll get that cooperation,” he added.

Ideally, Gilmore hoped, “We’re able to avoid the tariffs and it’s business as usual. Canada, Mexico, and US are too critical to one another to have any type of interruptions. But that’s how we feel at this point.”