Steel Products
Worthington Reports Rise in Net Sales & Earnings
Written by John Packard
January 4, 2013
Written by: Sophia Fain
Worthington Industries, Inc. reported net sales of $622.6 million, up 10 percent from the previous year as well as net earnings up almost $20 million from 2Q12 to $31.8 million for the 2Q13 ended November 30, 2012.
“We had strong performances from most of our businesses in the second quarter, with volume increases in Pressure Cylinders, and a steady performance from Steel Processing, offset by softness in Engineered Cabs,” said John McConnell, Chairman and CEO. “Our year-over-year performance improved despite declining steel prices, thanks to contributions from recent acquisitions. We are very pleased with the results of our latest acquisition, Westerman, whose products include tanks for use in on-site production in shale drilling activity.“
Steel Processing’s net sales dropped 9 percent y-o-y to $339.3 million for 2Q13 due to low prices and volumes. The mix of direct versus toll tons processed was 55 percent to 45 percent this quarter, compared with a 51 percent to 49 percent mix in the 2Q12.
Pressure Cylinders’ net sales gained 17 percent y-o-y to $207.5 million due to acquisitions. The Engineered Cabs segment reported net sales of $57.8 million, which were impacted by lower volumes from production delays and several top customers experiencing slower growth, according to the company.
“We expect to see the normal seasonality in our traditional markets in the third quarter,” McConnell said. “We do think that the delay by lawmakers in addressing the country’s fiscal crisis has resulted in a pullback in some areas of the economy. While this may impact some of our cyclical businesses, we continue to anticipate good performance in our higher growth cylinder operations serving retail, alternative fuels and energy markets.” (Source: Worthington Industries, Inc.)
John Packard
Read more from John PackardLatest in Steel Products
Nucor raises plate prices by $40/ton, cites market conditions
Nucor Corp. announced that its plate mill group was raising prices for as-rolled, discrete, cut-to-length, and normalized plate “in response to current market conditions.” The Charlotte, N.C.-based steelmaker said in a letter to customers on Tuesday, Feb. 4, after market close, that it would be seeking an increase of $40 per short ton (st). Nucor […]
Domestic, offshore CRC prices diverge
The price spread between US-produced cold-rolled (CR) coil and offshore products narrowed again in the week ended Jan. 31, as imports edged higher and US product ticked lower.
US HR price premium over imports widens
Hot-rolled (HR) coil prices ticked up in the US this week, while tags abroad were mixed. The result: the margin US hot band holds over imports on a landed basis widened slightly.
Plate report: Mills pushing price up, but still willing to talk
Repeated mill price hikes this week may have stopped the bleeding and could signal a rebound.
Higher tags expected for February scrap settle
The US scrap market sentiment has become more bullish over the last week. Many districts are telling SMU that the potential rise in prices will exceed the earlier estimate of $20 per gross ton (gt). Several sources have pegged the February market as up $30-50/gt. Here are several regional viewpoints from the trade: In the […]