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Worthington Industries Nets $86.8 Million for Year
COLUMBUS, Ohio -- Worthington Industries Inc., parent of Dietrich Industries of Warren, Ohio, today reported record sales of $782.9 million for the fourth quarter of fiscal 2004 and record sales of $2,379.1 million for the year ended May 31.Fourth quarter net earnings were $39.4 million and earnings per diluted share were 45 cents compared to net earnings of $15.6 million, or 18 cents per diluted share, for the same period last year."We have done much over the last several years to improve returns on capital and, ultimately, shareholder returns by investing in growth markets and products, consolidating facilities, and divesting non-strategic assets," says John McConnell, chairman and chief executive officer. "These efforts, combined with an improving economy and heightened productivity, accounted for roughly half of this quarter's results, excluding special items, and produced a record performance on their own. Rapidly rising steel prices and lower priced inventory accounted for the remainder of this quarter's excellent results. While future earnings could be impacted by a reversal of steel pricing trends, we have yet to realize the full benefit of our acquisition of Unimast or a recovery in the commercial construction market."Net earnings for the year, including special items, were $86.8 million, and earnings per diluted share were $1 compared to $75.2 million and 87 cents, respectively, for the same period last year.Within the Processed Steel Products segment, quarterly net sales rose 25%, or $88.9 million, to $438.8 million from $349.9 million in the comparable quarter of fiscal 2003. The increase in net sales was due to both increased volumes (6%) and pricing (18%). Excluding the impact of the $67.4 million impairment charge taken this quarter for the Decatur assets, operating income was much improved due to higher volumes and a wider spread between selling prices and material costs.Within the Metal Framing segment, which includes the Warren facility, net sales increased 66%, or $92 million, to $231.5 million from $139.5 million in the comparable quarter of fiscal 2003. Despite continued weakness in the commercial construction market, volumes were up 11% and pricing was up 49% over the year ago quarter. The wider spread between selling prices and material costs was primarily responsible for the significant improvement in operating income.Within the Pressure Cylinders segment, net sales increased 12%, or $11.8 million, to $108.3 million from $96.5 million in the comparable quarter of fiscal 2003. Unit volumes were up 7% overall as strength in the domestic market was partially offset by weaker European demand. European revenues rose despite much lower volumes as the weakened dollar boosted reported revenues in dollars by $2.3 million.Worthington's joint ventures contributed positively to fourth quarter results. Equity in net income of the six unconsolidated affiliates totaled $16.5 million for the quarter, up 120% from $7.5 million in the year ago quarter. All six affiliates had stronger earnings including records at Worthington Armstrong Venture, TWB Co., Acerex and Aegis Metal Framing.The first quarter is typically weaker than Worthington's fourth, which represents a seasonal peak for the company. For the future, economic and industry conditions appear to be improving across all customer segments. In automotive, Processed Steel's largest customer segment, "Big 3" vehicle production is projected to be up 1% for the coming fiscal quarter relative to last year but down 19% from this quarter. In commercial construction, Metal Framing's primary market, the U.S. Census Bureau's index of private construction spending confirms that commercial construction activity remains near five-year lows, but office construction showed some year-over-year improvement during Worthington's fourth quarter. Worthington Industries is a diversified metal processing company with annual sales of more than $2 billion. The company, founded in 1955, employs more than 8,000 and operates 61 facilities in 10 countries.Visit Worthington Industries: www.worthingtonindustries.com"