Worthington Industries Inc. is looking to continue growing its
tailor-welded blanks business, in which it now owns a
ThyssenKrupp AG sold
an additional 10-percent stake in Monroe, Mich.-based TWB Co.
LLC to Worthington at the end of July (
amm.com, July 31), with Central Chinas Wuhan
Iron & Steel (Group) Corp. acquiring the remaining 45
percent in August (
amm.com, Aug. 1).
"This is a strong
market niche that can reduce the weight of vehicles," president
and chief operating officer Mark A. Russell said during
Worthingtons Sept. 26 earnings call. "Automotive demand
(for processed steel and blanks) is strong.
TWB, which laser welds
sheets of automotive-grade steel together to form blanks that
go into various body applications, contributed $1.8 million of
equity income during the fiscal 2014 first quarter ended Aug.
31. While that figure was down from a year earlier, it
reflected only two months of activity in the most recent
quarter because of the ownership changes.
TWB contributed $12.6
million in equity income to Worthington in fiscal 2013 and
recorded net income of $27.9 million in fiscal 2013, up 21.7
percent from $23 million in fiscal 2012 and 55 percent higher
than the $18 million seen in fiscal 2011.
TWBs net sales
totaled $344.1 million in fiscal 2013, up 9.9 percent from
$312.9 million in 2012 and 26.4 percent above $272.2 million in
overall net income jumped 60.6 percent to almost $54.6 million
in the fiscal first quarter. The improvement reflects, in part,
higher sales. Revenue increased 3.9 percent to $692.3 million
from $666 million a year earlier.
"We had a very good
quarter with solid results from our steel processing and
pressure cylinders businesses and several of our joint
ventures," Worthington chairman and chief executive officer
John P. McConnell said during the call.