Steel Mills
Worthington Reports Big Jump in Quarterly Sales
Written by Tim Triplett
March 22, 2022
Worthington Industries today reported fiscal third-quarter results that included an 82% jump in sales versus the same quarter last year, driven by higher average selling prices and contributions from the acquisitions of Tempel Steel Co. and Shiloh Industries’ U.S. BlankLight business. Net sales for the quarter ended Feb. 28 totaled $1.4 billion, producing net earnings of $56.3 million, an improvement from sales of $759.1 million and earnings of $67.6 million in the third quarter of fiscal 2021.
“We delivered solid earnings in the quarter,” said Worthington President and CEO Andy Rose. “Steel Processing faced headwinds due to continued steel pricing volatility and choppy but improving automotive demand. Building Products improved across the board with increased contributions from ClarkDietrich and our wholly owned businesses, while Consumer Products benefited from robust demand and improved margins.”
Steel Processing’s net sales totaled $1.1 billion, up $548.1 million over the comparable quarter the prior year. The increase was driven by higher average selling prices and, to a lesser extent, the impact of acquisitions completed in fiscal 2022.
Consumer Products’ net sales totaled $161.7 million, up 41%, or $46.6 million, from the comparable prior-year quarter due to higher average selling prices and higher volume.
Building Products’ net sales totaled $132.9 million, up 38%, or $36.6 million, from the comparable quarter last year on higher average selling prices, the company said.
Sales in the company’s Sustainable Energy Solutions division totaled $31.0 million, down 3%, or $1.1 million, from the comparable prior-year quarter on lower volume associated with the May 31, 2021, divestiture of the Liquified Petroleum Gas business in Poland.
“While steel price volatility is expected to remain a headwind for the company overall, our businesses are performing well and underlying end-market demand remains healthy,” Rose said.
Headquartered in Columbus, Ohio, Worthington Industries is a leading value-added steel processor and manufacturer with 58 facilities in 16 states and nine countries.
By Tim Triplett, Tim@SteelMarketUpdate.com
Tim Triplett
Read more from Tim TriplettLatest in Steel Mills
Nippon could up investment in USS facilities to $7B: Report
It's the latest twist as the proxy battle heats up for Pittsburgh-based U.S. Steel.
Hybar expansion still on the table as Arkansas mill startup nears
As Hybar nears the completion of its $700-million rebar mill in Arkansas, the company said it is still “actively considering” building other steel facilities in the southern US.
Global steel production edges lower in February
February’s global raw steel output is tied with last December's for the fourth-lowest monthly production rate recorded over the past two years.
Fate of U.S. Steel hangs in the balance
The future of U.S. Steel remains unclear, but the proxy fight for control of the company is heating up. Shareholders will cast their votes on the company's future at the annual meeting in May.
Cliffs to idle Dearborn blast furnace, restart Cleveland furnace by July
Cleveland-Cliffs has decided to idle the steelmaking operations at its Dearborn Works in Michigan due to weak automotive demand.