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Worthington profits soar amid acquisitions

Keywords: Tags  Worthington Industries, steel processor, earnings, John McConnell, inventory, pricing, MISA Metals USA

CHICAGO — Worthington Industries Inc.’s net income soared to more than $31.8 million in its fiscal second quarter from just under $12 million in the same period a year earlier on sales that increased 10.1 percent to $622.6 million.

"We had strong performances from most of our businesses in the (fiscal) second quarter, with volume increases in pressure cylinders and a steady performance from steel processing, offset by softness in engineered cabs," chairman and chief executive officer John McConnell said in a statement Thursday. "Our year-over-year performance improved, despite declining steel prices, thanks to contributions from recent acquisitions."

The Columbus, Ohio-based company processes and distributes steel and manufactures cylinders, steel framing and motor cabs.

Net sales by Worthington’s Steel Processing business in the three months ended Nov. 30 fell 9.1 percent from a year earlier to $339.3 million, which the company attributed to lower average selling prices and an 8.1-percent decrease in volume to 626,000 tons. The volume decline was the result of the wind-down of unprofitable customer accounts from the MISA Metals acquisition. Nevertheless, the Steel Processing business generated operating earnings of more than $13.3 million, up 80.2 percent from nearly $7.4 million a year earlier due primarily to lower inventory-holding losses.

Worthington’s net income for the first six months of its fiscal year jumped 74.8 percent to $65.8 million from $37.6 million a year earlier on sales that improved 10.3 percent to $1.29 billion.

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