Worthington Industries Reports Q1 Results (WOR)

Worthington Industries Inc. (NYSE: WOR), a diversified metals processing company focusing on steel value-added steel processing and manufactured metal products, released its first-quarter fiscal 2012 financial results.

The Columbus, Ohio-based company reported first-quarter net sales of $602.4 million, compared with $616.8 million reported for the same period in the previous year. The company’s Steel Processing segment reported a 15% increase in first-quarter revenue, while its Pressure Cylinders segment reported a 24% increase in revenue. But the increases in the two segments were more than offset by the impact of de-consolidation of Worthington’s metal framing and automotive body panels businesses. Excluding the negative impact of de-consolidation, the company’s net sales in the first quarter of fiscal 2012 increased 18% on a year-over-year basis.

Worthington’s gross margin for the first quarter of fiscal 2012 was 12%, compared with 13% reported for the same period in the previous year. The 100 basis points decline was mainly due to the impact of de-consolidation. Excluding the impact, the company’s gross margin improved 3% over the previous year.

The company’s operating income for the first quarter was $21.2 million, flat when compared with the same period in the previous year. The company’s operating income in the first quarter of fiscal 2012 was hurt by costs related to restructuring and joint venture transactions.

Worthington reported first-quarter net income of $25.7 million, or $0.35 per share, compared with net income of $22.4 million, or $0.29 per share reported for the same period in the previous year.

John P. McConnell, Chairman and CEO of Worthington, said hat the company has had a good first quarter in Steel Processing and excellent results from its ceiling grid system joint venture WAVE. McConnell further said that the year-over-year comparisons show strength in areas where the company has focused to improve its performance and lessen the volatility of earnings, particularly in Steel Processing. He added that the company expects to perform well, barring further economic deterioration.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.