Worthington Industries fiscal 4Q net income falls

Worthington Industries posts 36 percent drop in fiscal 4th-qtr profit, hurt by lower prices

Associated Press

COLUMBUS, Ohio (AP) -- Worthington Industries Inc. said Thursday its fiscal fourth-quarter net income dropped 36 percent, hurt by hefty impairment and restructuring charges, along with lower selling prices for some of its products.

For the quarter ended May 31, the metal manufacturer earned $33.5 million, or 46 cents per share, down from $52.1 million, or 75 cents per share, in the same quarter the year before.

Excluding impairment and restructuring charges, along with inventory losses, the company said it posted an adjusted profit of 62 cents per share for the recent quarter.

Revenue fell 7 percent to $704.1 million from $755.4 million.

The results came in slightly short of Wall Street predictions. Analysts, on average, expected a profit of 64 cents per share on $704.5 million in revenue, according to FactSet.

Worthington makes pressure cylinders like oxygen, helium and scuba tanks. It also makes custom-engineered open and enclosed cabs and operator stations for heavy mobile equipment.

Worthington said the drop in revenue largely resulted from lower average selling prices, primarily in steel processing, stemming from the declining market price of steel. Sales volumes at the company's steel processing and engineered cabs business also fell.

For the full fiscal year, Worthington earned $136.4 million, or $1.91 per share, up from $115.6 million, or $1.65 per share, a year ago. Revenue rose to $2.61 billion from $2.53 billion.

Worthington also said Thursday that its board approved an increase of 2 cents to the company's quarterly cash dividend, raising it to 15 cents. The dividend will be paid on Sept. 27 to shareholders of record as of Sept. 13.

Shares of Columbus, Ohio-based Worthington fell $1.26, or 3.9 percent, to $31.10 in morning trading.

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