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Worthington profit curbed by write-off

Keywords: Tags  Worthington Industries, financial results, quarterly earnings, steel processing, pressure cylinders, John McConnell, Corinna Petry

CHICAGO — Worthington Industries Inc.’s net income slipped in its fiscal second quarter due in part to non-cash, pretax impairment charges of $30.7 million related to the write-off of certain trade name assets in connection with a rebranding initiative.

The Columbus, Ohio-based company recorded net income of nearly $23 million for the three months ended Nov. 30, down 27.7 percent from $31.8 million in the same period last year, on net sales that increased 23.7 percent to $769.9 million from $622.6 million.

The company’s steel processing division shipped 817,000 tons of steel in the quarter, up 30.5 percent from 626,000 tons a year earlier, as the unit’s operating income more than doubled to $34.79 million on sales that jumped 43 percent to $492.1 million.

The pressure cylinders unit shipped 17.7 million units in the quarter, down 9.2 percent from 19.5 million units in the same period last year, as the division’s operating income tumbled 51.5 percent to $8.3 million despite sales that increased 3.1 percent to $214 million.

"We had a very good second quarter with strong results from steel processing and solid results from pressure cylinders and our joint ventures," chairman and chief executive officer John McConnell said in a statement Dec. 19.

"We are positioned to continue to provide positive results in all of our businesses as our focus remains on growth, improved efficiency and performance," he said. "We continue to look for opportunities to invest in new and growing markets and to develop new products for our customers. We have driven results in an environment where the U.S. economy has been sluggish, though gaining momentum, and Europe remains flat. We believe we can continue to do so."

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