Steel Products
SMU Community Chat: Gilmore Bullish on Auto
June 15, 2023
Worthington Industries’ plan to split into two separate companies by early 2024 is full-steam ahead, and the man getting ready to helm the ship of the new Worthington Steel is Geoff Gilmore.
Gilmore joined Worthington in 1998, and has served as EVP and COO since August 2018. He will be the CEO of Worthington Steel, while the other company, “New Worthington,” name TBD, will be led by current Worthington Industries president and CEO Andy Rose.
Gilmore sat down with SMU senior analyst David Schollaert on Wednesday for a Community Chat to discuss the new company and what he’s seeing in the market.
First, Gilmore spoke of the honor of leading the new company, and touted the strengths of the management team coming with him.
“I’m just along for the ride and happy to be with this team,” he said. “I can’t wait to make it official and get on quarterly earnings calls.”
He said that Worthington Steel will be a “best-in-class, value-added steel processor with a blue-chip customer base in growing end markets.”
Gilmore cited electric vehicles, electric grid modernization, and the renewable energy markets in particular.
The company will have 31 manufacturing facilities, primarily in North America, but also in India and China.
He foresees Worthington Steel as a “market leader in automotive light-weighting solutions capitalizing on electrification, sustainability, and infrastructure spending.”
“Infrastructure is desperately needed in the US,” Gilmore said, noting the $1-trillion infrastructure bill signed in 2021 as an opportunity for growth.
Another area of focus is in the decarbonization of the auto industry, where Gilmore cited an S&P Global Mobility figure stating that 80% of vehicles sold globally in 2030 are expected to be either battery or hybrid.
He said the company’s Tempel Steel unit, acquired by Worthington in 2021, is poised to capitalize in both automotive and the energy market.
With electrification, “the automotive market is facing the largest fundamental change in decades,” Gilmore said.
Looking ahead for the next 12 months, he said the outlook for automotive is “steady as it goes,” adding that we are probably a couple of years away from auto sales at the 16.5-million level.
However, he said he is bullish on the market long term, noting that automotive accounts for 50% of Worthington’s business.
“Auto companies are not just betting on electric vehicles, they are doubling down,” Gilmore said.
If you’d like to view the entire presentation, click here.
Note the dates of our upcoming Community Chats:
June 20, 2023 – How to Generate Actionable Takeaways the SMU Steel Summit. Reigister here
July 12, 2023 – Timna Tanners, managing director, Wolfe Research. Register here
July 26, 2023 – Barry Zekelman, executive chairman and CEO, Zekelman Industries. Register here
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Steel Products
Rig count update: US activity stable, Canada slips
The number of oil and gas rigs operating in the US remained unchanged this week for the second consecutive week, while Canadian activity declined, according to the latest data released from Baker Hughes.
SMU market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
Domestic, offshore CRC prices steady
The price spread between US-produced cold-rolled (CR) coil and offshore products on a landed basis was unchanged in the week ended Dec. 20.
SMU Survey: Mill lead times contract slightly, remain short
Steel mill production times have seen very little change since September, according to buyers participating in our latest market survey.
Worthington Enterprises’ earnings dip in fiscal Q2’25
Worthington Enterprises' profits edged down in its fiscal second quarter of 205 vs. a year earlier. The company said a slump in sales in the quarter was due largely to the "deconsolidation" of the Sustainable Energy Solutions segment in the fourth quarter of fiscal 2024.