Worthington Reports Second Quarter Fiscal 2012 Results
COLUMBUS, OH--(Marketwire - January 5, 2012) - Worthington Industries, Inc. (NYSE: WOR) today reported net sales of $570.4 million and net earnings of $18.5 million, or $0.27 per share, for its fiscal 2012 second quarter ended November 30, 2011. In last year's second quarter, the Company reported net sales of $580.7 million and net earnings of $14.5 million, or $0.20 per share.
Financial highlights for the current and comparative periods are as follows:
| (U.S. dollars in millions, except per share data) |
| | | | | | | | | | | |
| | | 2Q 2012 | | 1Q 2012 | | 2Q 2011 | | 6M2012 | | 6M2011 |
| Net sales | | $ | 570.4 | | $ | 602.4 | | $ | 580.7 | | $ | 1,172.8 | | $ | 1,197.5 |
| Operating income | | | 12.5 | | | 21.2 | | | 12.9 | | | 33.7 | | | 34.0 |
| Equity income | | | 21.9 | | | 24.7 | | | 16.2 | | | 46.6 | | | 34.5 |
| Net earnings | | | 18.5 | | | 25.7 | | | 14.5 | | | 44.2 | | | 36.8 |
| Earnings per share | | $ | 0.27 | | $ | 0.35 | | $ | 0.20 | | $ | 0.62 | | $ | 0.49 |
"Our second quarter results were very good, showing solid incremental growth," said John McConnell, Chairman and CEO. "The Steel Processing and Pressure Cylinders businesses nearly made up for the lost revenue from the exiting of the Metal Framing business in the year-to-year comparison. Worthington Cylinders is strengthening its portfolio and global footprint to achieve our strategic growth goals for that business. We are pleased with the speed of integration in the Cylinders' acquisitions of the BernzOmatic® and Coleman® product lines, as well as the recent addition of STAKO and their strong European market position in LPG tanks." McConnell added, "Strengthening automotive demand and continued operating improvements produced good results in Steel Processing."
Consolidated Quarterly Results
Net sales for the second quarter ended November 30, 2011, were $570.4 million, down 2% from the comparable quarter in the prior year, when net sales were $580.7 million. The Steel Processing and Pressure Cylinders segments reported an 18% and a 33% increase in sales, respectively, aided by the recent acquisitions. These increases, however, were more than offset by the impact of the deconsolidation of the Company's former Metal Framing and Automotive Body Panels operations, as reported in previous periods. Excluding the deconsolidated operations, net sales rose 19% from the prior year quarter primarily due to the acquisitions and higher average selling prices.
Gross margin for the current quarter was $66.3 million, compared to $69.8 million in the prior year quarter. The decrease was primarily due to higher inventory holding losses for Steel Processing.
SG&A expense was $4.1 million lower than the prior year quarter primarily due to the deconsolidation transactions, partially offset by the impact of the acquisitions.
Operating income for the current quarter was $12.5 million, slightly lower than the $12.9 million reported during the comparable quarter of the prior year. Operating income for the current quarter was adversely affected by restructuring expenses, while gains on the sale of equipment and real estate related to the joint venture transactions had a favorable impact. During the current quarter, ongoing transformation efforts within Pressure Cylinders resulted in $2.0 million of outside consulting expenses, which are included in the "restructuring and other" expense line. The $1.2 million in the "joint venture transactions" line reflects one-time gains on asset disposals offset by facility exit and other costs related to the wind down of the retained Metal Framing facilities during the second quarter of fiscal 2012.
Interest expense was $4.8 million in the quarter, the same as in the prior year. The impact of higher average debt levels was offset by slightly lower interest rates.
Equity in net income from unconsolidated joint ventures was $21.9 million, an increase of $5.7 million from the comparable quarter in the prior year, on sales of $420.1 million. Worthington Armstrong Venture (WAVE) contributed $14.1 million of earnings in the current quarter, a 10% increase from the comparable prior year quarter. In addition, the new joint ventures, ClarkDietrich and ArtiFlex, contributed $2.2 million and $2.1 million of earnings, respectively.
For the current quarter, income tax expense of $9.2 million compared to $7.3 million in the comparable quarter in the prior year. Current quarter income tax expense reflects an estimated annual effective tax rate of 32.9% compared to 32.7% for the prior year quarter.
Balance Sheet
At quarter end, total debt was $476.3 million, up $16.9 million from August 31, 2011, as the acquisition of STAKO and the repurchase of common shares raised short-term borrowing needs. The Company had utilized $85.0 million of its $100.0 million trade accounts receivable securitization facility, and $136.1 million was drawn on its $400.0 million revolving credit facility as of November 30, 2011.
Quarterly Segment Results
Steel Processing's net sales of $373.5 million were up 18%, or $56.3 million, over the prior year quarter. Higher average selling prices increased net sales by $35.9 million and a 12% increase in volumes favorably impacted sales by $20.4 million. The mix of direct versus toll tons processed was 51% to 49% this quarter, compared with 54% to 46% in the comparable quarter in the prior year. Operating income declined $1.0 million as increased volumes were more than offset by the impact of higher manufacturing expenses and inventory holding losses.
Pressure Cylinders' net sales of $181.5 million were up 33% from the comparable prior year quarter. Net sales in the North American operations increased 33% over prior year, aided by the Bernz acquisition. Net sales for the European operations were higher primarily due to the STAKO acquisition and a more favorable product mix, but overall volumes were down. Worthington Nitin Cylinders, the Company's Indian consolidated joint venture, contributed $1.9 million to net sales. Pressure Cylinders' operating income increased $0.7 million, or 7%, from the prior year quarter to $10.2 million. The improvement in operating income was driven by higher overall volumes and an increased spread between selling prices and material costs. However, higher SG&A expenses of $5.5 million, driven primarily by the impact of acquisitions and the absorption of a larger portion of corporate allocated expenses resulting from the deconsolidated operations offset the improvement.
Metal Framing's net sales were $1.3 million during the quarter, reflecting two months of operations for the vinyl business, which was sold on October 31, 2011. The prior year quarter included the full Metal Framing operations, which were contributed into the new ClarkDietrich joint venture on March 1, 2011.
Noteworthy Developments
| ● | On September 30, 2011, the Company completed the acquisition of Poland-based STAKO, a leading European producer of automotive liquefied propane gas and compressed natural gas tanks. The acquired net assets are now a part of the Pressure Cylinders business segment. The purchase price was $41.5 million. |
| ● | On December 1, 2011, the propane fuel business of The Coleman Company, Inc. became part of the Pressure Cylinders segment. The Company also licensed the Coleman name, adding the Coleman brand to the Cylinders growing retail portfolio. The purchase price was $23.4 million. |
| ● | A quarterly dividend of $0.12 was declared by the Company's Board of Directors on December 14, 2011, payable on March 29, 2012 to shareholders of record March 15, 2012. |
| ● | The Company repurchased 1.2 million shares for $16.7 million during the quarter. |
| ● | In December, the Company received a non-recurring distribution of $50.0 million from WAVE, the ceiling grid joint venture, as WAVE expanded its revolving credit facility to $225.0 million and issued a $50.0 million 10-year senior unsecured note. |
| ● | On December 29, 2011, the Company acquired the stock of Angus Industries for $180.0 million. Angus designs and manufacturers OEM cabs for mobile equipment in industries serving the agriculture, construction and mining industries. For its fiscal year ended December 31, 2011, Angus recognized approximately $200.0 million of revenue. Post-closing, the Company has approximately $569.0 million of funded debt and availability under its revolving credit facilities of $184.0 million. |
Outlook
"Our Company continues to leverage our core competency as a diversified metals manufacturer by acquiring high return and high value-added businesses that serve attractive end markets," McConnell said. "The acquisition of Angus Industries is a result of that focus and we are pleased to have this market leader in the design and manufacturing of high quality, custom-engineered cabs in the Worthington family.
"We are aggressively positioning Worthington Industries for growth. Our focus over the last three years has been on improving our existing businesses or exiting them, and finding new, complementary businesses to help us achieve our strategic goal of decreasing earnings volatility. We are strengthening our brand offerings and added new growth opportunities in Cylinders. Our Steel Processing segment is operating at a high level and we have positioned our joint ventures to continue their strong results. Even with the slow economy, we have seen incremental improvements in many of our markets and believe we can continue to grow our bottom line."
Conference Call
Worthington will review second quarter results during its quarterly conference call on January 5, 2012, at 1:30 p.m., Eastern Time. Details regarding the conference call can be found on the Company website at www.WorthingtonIndustries.com.
Corporate Profile
Worthington Industries is a leading diversified metals manufacturing company with 2011 fiscal year sales of $2.4 billion. The Columbus, Ohio based company is North America's premier value-added steel processor and a leader in manufactured pressure cylinders, such as propane, oxygen and helium tanks, hand torches, refrigerant and industrial cylinders, camping cylinders, scuba tanks, and compressed natural gas storage cylinders; custom-engineered open and enclosed cabs and operator stations for heavy mobile equipment; framing systems and stairs for mid-rise buildings; steel pallets and racks; and through joint ventures, suspension grid systems for concealed and lay-in panel ceilings, current and past model automotive service stampings; laser welded blanks, and light gauge steel framing for commercial and residential construction. Worthington employs more than 9,500 people and operates 80 facilities in 12 countries.
Founded in 1955, the Company operates under a long-standing corporate philosophy rooted in the golden rule. Earning money for its shareholders is the first corporate goal. This philosophy serves as an unwavering commitment to the customer, supplier, and shareholder, and it serves as the Company's foundation for one of the strongest employee-employer partnerships in American industry.
Safe Harbor Statement
The Company wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements by the Company relating to business plans or future or expected growth, performance, sales, volumes, cash flows, earnings, balance sheet strengths, debt, financial condition or other financial measures; projected profitability potential, capacity, and working capital needs; demand trends for the Company or its markets; pricing trends for raw materials and finished goods and the impact of pricing changes; anticipated capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, newly-created joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to maintain margins and capture and maintain market share and to develop or take advantage of future opportunities, new products and new markets; expectations for Company and customer inventories, jobs and orders; expectations for the economy and markets or improvements therein; expected benefits from transformation plans, cost reduction efforts and other new initiatives; expectations for increasing volatility or improving and sustaining earnings, earnings potential, margins or shareholder value; effects of judicial rulings and other non-historical matters constitute "forward-looking statements" within the meaning of the Act. Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation, the effect of national, regional and worldwide economic conditions generally and within major product markets, including a prolonged or substantial economic downturn; the effect of conditions in national and worldwide financial markets; product demand and pricing; changes in product mix, product substitution and market acceptance of the Company's products; fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities and other items required by operations; effects of facility closures and the consolidation of operations; the effect of financial difficulties, consolidation and other changes within the steel, automotive, construction and other industries in which the Company participates; failure to maintain appropriate levels of inventories; financial difficulties (including bankruptcy filings) of original equipment manufacturers, end-users and customers, suppliers, joint venture partners and others with whom the Company does business; the ability to realize targeted expense reductions from head count reductions, facility closures and other cost reduction efforts; the ability to realize other cost savings and operational, sales and sourcing improvements and efficiencies, and other expected benefits from transformation initiatives, on a timely basis; the overall success of, and the ability to integrate, newly-acquired businesses and achieve synergies and other expected benefits therefrom; the overall success of newly-created joint ventures, including the demand for their products, and the ability to achieve the anticipated benefits therefrom; capacity levels and efficiencies, within facilities, within major product markets and within the industry as a whole; the effect of disruption in the business of suppliers, customers, facilities and shipping operations due to adverse weather, casualty events, equipment breakdowns, acts of war or terrorist activities or other causes; changes in customer demand, inventories, spending patterns, product choices, and supplier choices; risks associated with doing business internationally, including economic, political and social instability, foreign currency exposure and the acceptance of our products in new markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; adverse claims experience with respect to worker's compensation, product recalls or product liability, casualty events or other matters; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; level of imports and import prices in the Company's markets; the impact of judicial rulings and governmental regulations, including those adopted by the United States Securities and Exchange Commission and other governmental agencies as contemplated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, both in the United States and abroad; and other risks described from time to time in the Company's filings with the United States Securities and Exchange Commission, including those described in "Part I - Item 1A. - Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended May 31, 2011.
| WORTHINGTON INDUSTRIES, INC. | |
| CONSOLIDATED STATEMENTS OF EARNINGS | |
| (In thousands, except per share) | |
| | |
| | | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | November 30, | | | November 30, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| Net sales | | $ | 570,389 | | | $ | 580,687 | | | $ | 1,172,776 | | | $ | 1,197,492 | |
| Cost of goods sold | | | 504,112 | | | | 510,868 | | | | 1,035,037 | | | | 1,048,759 | |
| | Gross margin | | | 66,277 | | | | 69,819 | | | | 137,739 | | | | 148,733 | |
| Selling, general and administrative expense | | | 52,901 | | | | 56,971 | | | | 98,262 | | | | 113,749 | |
| Restructuring and other expense (income) | | | 2,048 | | | | (76 | ) | | | 3,751 | | | | 988 | |
| Joint venture transactions | | | (1,192 | ) | | | - | | | | 2,023 | | | | - | |
| | Operating income | | | 12,520 | | | | 12,924 | | | | 33,703 | | | | 33,996 | |
| Other income (expense): | | | | | | | | | | | | | | | | |
| | Miscellaneous income (expense) | | | 279 | | | | (94 | ) | | | 680 | | | | (137 | ) |
| | Interest expense | | | (4,756 | ) | | | (4,838 | ) | | | (9,444 | ) | | | (9,546 | ) |
| | Equity in net income of unconsolidated affiliates | | | 21,912 | | | | 16,223 | | | | 46,609 | | | | 34,512 | |
| | Earnings before income taxes | | | 29,955 | | | | 24,215 | | | | 71,548 | | | | 58,825 | |
| Income tax expense | | | 9,207 | | | | 7,332 | | | | 22,459 | | | | 17,689 | |
| Net earnings | | | 20,748 | | | | 16,883 | | | | 49,089 | | | | 41,136 | |
| Net earnings attributable to noncontrolling interest | | | 2,216 | | | | 2,414 | | | | 4,904 | | | | 4,313 | |
| Net earnings attributable to controlling interest | | $ | 18,532 | | | $ | 14,469 | | | $ | 44,185 | | | $ | 36,823 | |
| | | | | | | | | | | | | | | | | |
| Basic | | | | | | | | | | | | | | | | |
| Average common shares outstanding | | | 69,350 | | | | 74,062 | | | | 70,440 | | | | 75,870 | |
| Earnings per share attributable to controlling interest | | $ | 0.27 | | | $ | 0.20 | | | $ | 0.63 | | | $ | 0.49 | |
| | | | | | | | | | | | | | | | | |
| Diluted | | | | | | | | | | | | | | | | |
| Average common shares outstanding | | | 69,356 | | | | 74,077 | | | | 70,925 | | | | 75,882 | |
| Earnings per share attributable to controlling interest | | $ | 0.27 | | | $ | 0.20 | | | $ | 0.62 | | | $ | 0.49 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Common shares outstanding at end of period | | | 68,937 | | | | 74,108 | | | | 68,937 | | | | 74,108 | |
| | | | | | | | | | | | | | | | | |
| Cash dividends declared per share | | $ | 0.12 | | | $ | 0.10 | | | $ | 0.24 | | | $ | 0.20 | |
| WORTHINGTON INDUSTRIES, INC. |
| CONSOLIDATED BALANCE SHEETS |
| (In thousands) |
| |
| | | November 30, | | May 31, |
| | | 2011 | | 2011 |
| Assets | | | | | | |
| Current assets: | | | | | | |
| | Cash and cash equivalents | | $ | 53,806 | | $ | 56,167 |
| | Receivables, less allowances of $3,254 and $4,150 at November 30, 2011 and May 31, 2011 | | | 333,375 | | | 388,550 |
| | Inventories: | | | | | | |
| | | Raw materials | | | 165,232 | | | 189,450 |
| | | Work in process | | | 85,175 | | | 98,940 |
| | | Finished products | | | 85,764 | | | 82,440 |
| | | | Total inventories | | | 336,171 | | | 370,830 |
| | Income taxes receivable | | | 10,001 | | | 1,356 |
| | Assets held for sale | | | 22,962 | | | 9,681 |
| | Deferred income taxes | | | 22,290 | | | 28,297 |
| | Prepaid expenses and other current assets | | | 32,744 | | | 36,754 |
| | | Total current assets | | | 811,349 | | | 891,635 |
| | | | | | | |
| Investments in unconsolidated affiliates | | | 233,187 | | | 232,149 |
| Goodwill | | | 102,379 | | | 93,633 |
| Other intangible assets, net of accumulated amortization of $12,715 and $12,688 at November 30, 2011 and May 31, 2011 | | | 43,235 | | | 19,958 |
| Other assets | | | 23,150 | | | 24,540 |
| Property, plant and equipment, net | | | 398,989 | | | 405,334 |
| Total assets | | $ | 1,612,289 | | $ | 1,667,249 |
| | | | | | | |
| Liabilities and equity | | | | | | |
| Current liabilities: | | | | | | |
| | Accounts payable | | $ | 177,194 | | $ | 253,404 |
| | Short-term borrowings | | | 226,086 | | | 132,956 |
| | Accrued compensation, contributions to employee benefit plans and related taxes | | | 43,155 | | | 72,312 |
| | Dividends payable | | | 8,391 | | | 7,175 |
| | Other accrued items | | | 30,160 | | | 52,023 |
| | Income taxes payable | | | 502 | | | 7,132 |
| | | Total current liabilities | | | 485,488 | | | 525,002 |
| | | | | | | |
| Other liabilities | | | 71,522 | | | 67,309 |
| Long-term debt | | | 250,263 | | | 250,254 |
| Deferred income taxes | | | 88,126 | | | 83,981 |
| | | Total liabilities | | | 895,399 | | | 926,546 |
| | | | | | | |
| Shareholders' equity - controlling interest | | | 670,110 | | | 689,910 |
| Noncontrolling interest | | | 46,780 | | | 50,793 |
| | | Total equity | | | 716,890 | | | 740,703 |
| Total liabilities and equity | | $ | 1,612,289 | | $ | 1,667,249 |
| WORTHINGTON INDUSTRIES, INC. | |
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |
| (In thousands) | |
| | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | November 30, | | | November 30, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| Operating activities | | | | | | | | | | | | | | | | |
| Net earnings | | $ | 20,748 | | | $ | 16,883 | | | $ | 49,089 | | | $ | 41,136 | |
| Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | | | | | | | | | | | | | | | | |
| | Depreciation and amortization | | | 13,119 | | | | 15,646 | | | | 25,973 | | | | 31,470 | |
| | Restructuring and other expense (income), non-cash | | | - | | | | (32 | ) | | | - | | | | 225 | |
| | Provision for deferred income taxes | | | 500 | | | | (1,365 | ) | | | 8,178 | | | | (4,464 | ) |
| | Bad debt expense (income) | | | (140 | ) | | | 776 | | | | (111 | ) | | | 781 | |
| | Equity in net income of unconsolidated affiliates, net of distributions | | | 2,782 | | | | (2,160 | ) | | | (2,287 | ) | | | (3,816 | ) |
| | Net loss (gain) on sale of assets | | | (1,653 | ) | | | 354 | | | | (2,068 | ) | | | (329 | ) |
| | Stock-based compensation | | | 2,578 | | | | 1,579 | | | | 5,779 | | | | 3,033 | |
| Changes in assets and liabilities: | | | | | | | | | | | | | | | | |
| | Receivables | | | 23,981 | | | | 8,100 | | | | 51,355 | | | | (15,122 | ) |
| | Inventories | | | 47,809 | | | | 31,799 | | | | 53,724 | | | | 26,330 | |
| | Prepaid expenses and other current assets | | | 6,063 | | | | 1,437 | | | | 6,674 | | | | 695 | |
| | Other assets | | | 1,567 | | | | 107 | | | | 2,840 | | | | 807 | |
| | Accounts payable and accrued expenses | | | (54,164 | ) | | | (15,158 | ) | | | (151,012 | ) | | | (94,143 | ) |
| | Other liabilities | | | 1,165 | | | | 1,491 | | | | 1,381 | | | | 3,658 | |
| Net cash provided (used) by operating activities | | | 64,355 | | | | 59,457 | | | | 49,515 | | | | (9,739 | ) |
| | | | | | | | | | | | | | | | | |
| Investing activities | | | | | | | | | | | | | | | | |
| | Investment in property, plant and equipment, net | | | (3,559 | ) | | | (4,477 | ) | | | (10,031 | ) | | | (10,810 | ) |
| | Acquisitions, net of cash acquired | | | (38,782 | ) | | | - | | | | (79,782 | ) | | | (12,175 | ) |
| | Investments in unconsolidated affiliates | | | - | | | | - | | | | (785 | ) | | | - | |
| | Proceeds from sale of assets | | | 6,306 | | | | 4,366 | | | | 11,347 | | | | 6,508 | |
| Net cash used by investing activities | | | (36,035 | ) | | | (111 | ) | | | (79,251 | ) | | | (16,477 | ) |
| | | | | | | | | | | | | | | | | |
| Financing activities | | | | | | | | | | | | | | | | |
| | Net proceeds from short-term borrowings | | | 16,881 | | | | (41,375 | ) | | | 93,131 | | | | 123,735 | |
| | Proceeds from issuance of common shares | | | 315 | | | | 1,036 | | | | 8,523 | | | | 1,338 | |
| | Payments to noncontrolling interest | | | (3,456 | ) | | | (3,457 | ) | | | (6,576 | ) | | | (6,577 | ) |
| | Repurchase of common shares | | | (16,715 | ) | | | (12,137 | ) | | | (52,120 | ) | | | (75,092 | ) |
| | Dividends paid | | | (8,414 | ) | | | (7,408 | ) | | | (15,583 | ) | | | (15,334 | ) |
| Net cash provided (used) by financing activities | | | (11,389 | ) | | | (63,341 | ) | | | 27,375 | | | | 28,070 | |
| | | | | | | | | | | | | | | | | |
| Increase (decrease) in cash and cash equivalents | | | 16,931 | | | | (3,995 | ) | | | (2,361 | ) | | | 1,854 | |
| Cash and cash equivalents at beginning of period | | | 36,875 | | | | 64,865 | | | | 56,167 | | | | 59,016 | |
| Cash and cash equivalents at end of period | | $ | 53,806 | | | $ | 60,870 | | | $ | 53,806 | | | $ | 60,870 | |
| WORTHINGTON INDUSTRIES, INC. | |
| SUPPLEMENTAL DATA | |
| (In thousands) | |
| | | | | | | | | | | | | |
| This supplemental information is provided to assist in the analysis of the results of operations. | |
| | |
| | | Three Months Ended | | | Six Months Ended | |
| | | November 30, | | | November 30, | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| Volume: | | | | | | | | | | | | | | | | |
| | Steel Processing (tons) | | | 681 | | | | 608 | | | | 1,385 | | | | 1,224 | |
| | Pressure Cylinders (units) | | | 14,585 | | | | 13,684 | | | | 29,178 | | | | 27,953 | |
| | Metal Framing (tons) | | | 1 | | | | 60 | | | | 1 | | | | 125 | |
| | | | | | | | | | | | | | | | | |
| Net sales: | | | | | | | | | | | | | | | | |
| | Steel Processing | | $ | 373,462 | | | $ | 317,147 | | | $ | 781,636 | | | $ | 672,011 | |
| | Pressure Cylinders | | | 181,454 | | | | 136,218 | | | | 350,283 | | | | 272,292 | |
| | Metal Framing | | | 1,257 | | | | 77,084 | | | | 4,402 | | | | 161,588 | |
| | Other | | | 14,216 | | | | 50,238 | | | | 36,455 | | | | 91,601 | |
| | | Total net sales | | $ | 570,389 | | | $ | 580,687 | | | $ | 1,172,776 | | | $ | 1,197,492 | |
| | | | | | | | | | | | | | | | | |
| Material cost: | | | | | | | | | | | | | | | | |
| | Steel Processing | | $ | 281,784 | | | $ | 232,845 | | | $ | 588,434 | | | $ | 494,032 | |
| | Pressure Cylinders | | | 89,410 | | | | 62,784 | | | | 175,962 | | | | 126,301 | |
| | Metal Framing | | | 1,003 | | | | 55,128 | | | | 1,946 | | | | 111,845 | |
| | | | | | | | | | | | | | | | | |
| Operating income (loss): | | | | | | | | | | | | | | | | |
| | Steel Processing | | $ | 7,387 | | | $ | 8,429 | | | $ | 23,664 | | | $ | 25,047 | |
| | Pressure Cylinders | | | 10,202 | | | | 9,523 | | | | 22,117 | | | | 19,077 | |
| | Metal Framing | | | 372 | | | | (6,684 | ) | | | (3,315 | ) | | | (10,613 | ) |
| | Other | | | (5,441 | ) | | | 1,656 | | | | (8,763 | ) | | | 485 | |
| | | Total operating income | | $ | 12,520 | | | $ | 12,924 | | | $ | 33,703 | | | $ | 33,996 | |
| The following provides detail of the restructuring and other expense (income) and joint venture transactions included in the operating income by segment presented above. | |
| | | | | | | | | | | | |
| | | Three Months Ended | | | Six Months Ended | |
| | | November 30, | | | November 30, | |
| | | 2011 | | | 2010 | | | 2011 | | 2010 | |
| Pre-tax restructuring and other expense (income): | | | | | | | | | | | | | | | |
| | Steel Processing | | $ | - | | | $ | (270 | ) | | $ | - | | $ | (373 | ) |
| | Pressure Cylinders | | | - | | | | - | | | | - | | | - | |
| | Metal Framing | | | - | | | | 56 | | | | - | | | 976 | |
| | Other | | | 2,048 | | | | 138 | | | | 3,751 | | | 385 | |
| | | Total restructuring and other expense (income) | | $ | 2,048 | | | $ | (76 | ) | | $ | 3,751 | | $ | 988 | |
| | | | | | | | | | | | | | | | |
| | | | Three Months Ended | | | | Six Months Ended | |
| | | | November 30, | | | | November 30, | |
| | | | 2011 | | | | 2010 | | | | 2011 | | | 2010 | |
| Pre-tax joint venture transactions: | | | | | | | | | | | | | | | |
| | Steel Processing | | $ | - | | | $ | - | | | $ | - | | $ | - | |
| | Pressure Cylinders | | | - | | | | - | | | | - | | | - | |
| | Metal Framing | | | (1,192 | ) | | | - | | | | 2,023 | | | - | |
| | Other | | | - | | | | - | | | | - | | | - | |
| | | Total joint venture transactions | | $ | (1,192 | ) | | $ | - | | | $ | 2,023 | | $ | - | |
CONTACTS:
Cathy M. Lyttle
VP, Corporate Communications and Investor Relations
Phone: (614) 438-3077
E-mail: cmlyttle@WorthingtonIndustries.com
Sonya L. Higginbotham
Director, Corporate Communications
Phone: (614) 438-7391
E-mail: slhiggin@WorthingtonIndustries.com
