Steel Mills

Worthington Splitting Off Its Steel Processing Business

Written by Laura Miller

September 29, 2022

Worthington Industries announced it will be splitting off its steel business and creating two separate, publicly traded businesses.

Worthington

Worthington’s Steel Processing business segment will become the independent Worthington Steel, with an aim to be a processor with expanded offerings in electrical steel laminations and automotive lightweighting solutions. Worthington’s current chief operating officer, Geoff Gilmore, will serve as the new company’s CEO.

The separate New Worthington company will be made up of Worthington’s existing Consumer Products, Building Products, and Sustainable Energy Solutions Segments, with plans to capitalize on trends in sustainability, technology, remodeling and construction, and outdoor living. Notably, the company’s “value will no longer be highly correlated to the price of steel,” Worthington said.

Both companies will continue to be headquartered in Columbus, Ohio.

“We are very excited to announce our plan to separate our Steel Processing business to create two market-leading companies with a proud shared history and values. The separation represents a major milestone for our company, and I am confident that this move will position both businesses to capitalize on focused growth strategies to better serve their customers and unlock significant shareholder value,” commented Andy Rose, president and CEO of Worthington Industries, on the company’s earnings conference call on Thursday, Sept. 29.

“For nearly 70 years, we have continued my father’s legacy of operating Worthington based on a people-first philosophy, rooted in the Golden Rule, focused on driving shareholder value…As Worthington plans to become two standalone public companies, these guiding principles will remain intact for both companies,” noted John McConnell, executive chairman of Worthington’s Board of Directors, in the news release announcing the split.

The McConnell family is expected to remain a long-term shareholder of both companies.

While the Steel Processing segment’s fiscal year 2022 sales reached $3.9 billion and adjusted EBITDA was $259 million, the segment negatively impacted Worthington’s earnings by $48.6 million in its fiscal 2023 first quarter ended Aug. 31, 2022 (see related story).

Worthington Industries’ current business operates 52 facilities in 15 states and nine countries.

By Laura Miller, Laura@SteelMarketUpdate.com

Laura Miller

Laura Miller is a reporter and editor for Steel Market Update. She has held a variety of positions within the steel industry since 2007, including reporting and editing for Steel Business Briefing/Platts, the Association for Iron and Steel Technology, and Kallanish Commodities, as well as marketing for what was then known as ThyssenKrupp Steel USA (now AM/NS Calvert). After a five-year hiatus working across other industries, she returned to steel in 2021 and has covered the flat rolled, tubular, and trade areas of the industry. She is a member of the Association of Women in the Metal Industries and a past-president of the AWMI Pittsburgh Chapter. She holds a BA in Latin American Studies from Edinboro University of Pennsylvania. She can be reached at laura@steelmarketupdate.com or 724-759-7869.

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