Steel Mills
Worthington Reports 32% Increase in Construction Shipments
Written by Sandy Williams
March 23, 2016
Worthington Industries reported net sales of $647.1 million for third quarter 2016, ending February 29. Sales were down from second quarter and year over year as a result of lower volume in Pressure Cylinders and Engineered Cabs, combined with lower average selling prices in Steel Processing due to a decline in the market price of steel.
Net earnings were $29.6 million up from $23.2 million in second quarter and a loss of 25.7 million in Q3 2015.
Steel processing operating income was up $6 million from the previous year due to improved inventory management and modest hedge gains that were offset by lower tolling volume at the Spartan JV.
Steel processing shipment volume was down 4 percent but better than MSCI data that declined 7 percent for the same period. Growth of service center shipments slowed in the quarter. Construction shipments were up 32 percent and automotive 3 percent.
Mark Russell, President and Chief Operating Officer attributed the variance from MSCI data to strength in construction and margin improvement due to trade case decisions.
“As you know, the trade case have come through on coated products first and that kind of widened the spread between coated and hot-rolled and cold-rolled,” said Russell. “And we have hot-roll-based galv and cold roll-based galv both. And those wide spreads helped us win market share, I think, in the construction market.”
John McConnell, Chairman and Chief Executive Officer commented, “We definitely see that the trade cases have an immediate effect on market sentiment.”
Heavy truck and agriculture were Worthington’s weakest market in Q3. Industrial products were up by 2 percent and consumer products down 5 percent.
The oil and gas equipment market continues to decline, said Russell, with limited short term capital purchases by major producers.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor names Batterbee, Bledsoe to HR roles
Nucor Corp. has promoted Thomas J. Batterbee to the position EVP of human resources and talent and appointed Elizabeth Bledsoe to the newly created position of president of human resources and talent.
Millett sees tariffs, CORE case benefiting SDI
Steel Dynamics' top exec thinks Trump’s tariff policies, as well as the results from the recent CORE case, will prove advantageous to the Fort Wayne, Ind.-based steelmaker and aluminum company.
USW digs in on opposition to USS-Nippon deal
“We remain deeply concerned about the national and economic security implications of the subject transaction,” the union stated in the letter dated April 21.
SDI’s Q1 earnings slump on-year, but up sequentially
SDI earnings slip in first quarter year over year, but are up sequentially.
POSCO inks MoU with Hyundai on Louisiana EAF mill
POSCO has signed a Memorandum of Understanding (MoU) with Hyundai Motor Group that includes an equity investment in Hyundai’s previously announced EAF mill set to be built in Louisiana.