COLUMBUS, Ohio, Sept. 19 /PRNewswire/ -- Worthington Industries, Inc.
(NYSE: WOR) today reported results for the three months ended August 31, 2001.
For the quarter, earnings per diluted share were $0.17, compared to $0.15
reported last year. Sales were $409.6 million, a decrease of 15% from $484.2
million last year.
For the fiscal 2002 first quarter, net income was $14.3 million, compared
to $12.5 million for the same period last year. Net income included a $1.2
million gain from the sale of company aircraft.
"Although net income remains well below sustainable norms, I am encouraged
that our first quarter results were comparable to last quarter, our seasonally
strong fourth quarter," said John P. McConnell, Chairman and CEO of
Worthington Industries.
"Despite continued volume shortfalls in most business units, we've seen a
return to some stability in pricing and margins in our largest business
segment, Processed Steel Products. This is offsetting continued weakness in
Pressure Cylinders and growing softness in the commercial construction market
that is negatively impacting our Metal Framing business segment.
"The combination of conflicting economic signals and the, as yet, unknown
ramifications of our country's national tragedy makes it difficult to forecast
earnings. At this point, we expect an improved earnings trend throughout our
2002 fiscal year, including next quarter," concluded McConnell.
During the quarter the company continued to generate cash flow from
operations and reduced outstanding debt by $21.5 million. And, for the 135th
consecutive quarter, the company declared a quarterly dividend payable
September 29, 2001.
Worthington Industries is a leading diversified metal processing company
with annual sales of approximately $2 billion. The Columbus, Ohio, based
company is North America's premier value-added steel processor and a leader in
manufactured metal products such as automotive aftermarket stampings, pressure
cylinders, metal framing, metal ceiling grid systems and laser welded blanks.
Worthington employs 8,000 people and operates 59 facilities in 11 countries.
Founded in 1955, the company operates under a long-standing corporate
philosophy rooted in the golden rule, with earning money for its shareholders
as the first corporate goal. This philosophy, an unwavering commitment to the
customer, and one of the strongest employee/employer partnerships in American
industry serve as the company's foundation.
Safe Harbor Statement
The Company wishes to take advantage of the Safe Harbor provisions
included in the Private Securities Litigation Reform Act of 1995 ("the Act").
Statements by the Company relating to future revenues, earnings and growth,
stock appreciation, plant capabilities and other statements which are not
historical information constitute "forward looking statements" within the
meaning of the Act. All forward-looking statements are subject to risks and
uncertainties which could cause actual results to differ from those projected.
Factors that could cause actual results to differ materially include, but are
not limited to, the following: general economic conditions; conditions in the
Company's major markets; competitive factors and pricing pressures; product
demand and changes in product mix; changes in pricing or availability of raw
material, particularly steel; delays in construction or equipment supply; and
other risks described from time to time in the Company's filings with the
Securities and Exchange Commission.
WORTHINGTON INDUSTRIES, INC.
EARNINGS HIGHLIGHTS
(In Thousands, Except Per Share)
Three Months Ended
Aug. 31,
2001 2000
(Unaudited) (Unaudited)
Net Sales:
Processed Steel Products $265,571 $318,113
Metal Framing 79,546 95,010
Pressure Cylinders 61,602 69,976
Other 2,839 1,125
Total Net Sales 409,558 484,224
Cost of Goods Sold 349,561 420,346
Gross Margin 59,997 63,878
Selling, General & Administrative Expense 37,411 41,991
Operating Income:
Processed Steel Products 13,538 9,364
Metal Framing 6,566 9,027
Pressure Cylinders 1,817 5,313
Other 665 (1,817)
Total Operating Income 22,586 21,887
Other Income (Expense):
Misc. Income 527 83
Interest Expense (5,497) (9,357)
Equity in Net Income of
Unconsolidated Affiliates 4,880 7,036
Earnings Before Taxes 22,496 19,649
Income Taxes 8,211 7,172
Net Earnings $14,285 $12,477
Common Shares Outstanding at End of
Period 85,391 85,755
Average Common Shares Outstanding -
Diluted 85,799 85,755
Earnings Per Share - Diluted $0.17 $0.15
WORTHINGTON INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
Aug. 31, May 31,
2001 2001
(Unaudited) (Audited)
ASSETS
Current Assets
Cash and cash equivalents $816 $194
Accounts receivable, net 130,091 169,330
Inventories 228,286 227,506
Other current assets 47,092 52,689
Total Current Assets 406,285 449,719
Investments in Unconsolidated
Affiliates 59,314 58,638
Goodwill 76,264 76,439
Other Assets 54,904 54,317
Property, Plant and Equipment, net 835,323 836,749
Total Assets $1,432,090 $1,475,862
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $185,335 $207,568
Notes payable 9,528 13,794
Current maturities of long-term
debt 1,503 1,748
Other current liabilities 80,314 83,509
Total Current Liabilities 276,680 306,619
Other Liabilities 70,728 69,396
Long-Term Debt 292,447 309,208
Deferred Income Taxes 142,817 140,974
Shareholders' Equity 649,418 649,665
Total Liabilities and
Shareholders' Equity $1,432,090 $1,475,862
WORTHINGTON INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Three Months Ended
Aug. 31,
2001 2000
Operating Activities (Unaudited) (Unaudited)
Net Earnings $14,285 $12,477
Adjustments to reconcile net
earnings to net cash provided by
operating activities:
Depreciation and amortization 16,988 17,843
Other adjustments (327) (1,068)
Changes in current assets and
liabilities 9,493 (8,512)
Net Cash Provided By Operating
Activities 40,439 20,740
Investing Activities
Investment in property, plant and
equipment, net (12,748) (18,165)
Proceeds from sale of assets 7,882 221
Net Cash Used By Investing
Activities (4,866) (17,944)
Financing Activities
Proceeds from (payments on) short-
term borrowings (4,266) 13,323
Proceeds from long-term debt - 482
Principal payments on long-term
debt (17,219) (1,001)
Repurchase of common shares - (737)
Dividends paid (13,660) (13,721)
Other 194 (1,440)
Net Cash Used By Financing
Activities (34,951) (3,094)
Increase (decrease) in cash and cash
equivalents 622 (298)
Cash and cash equivalents at
beginning of period 194 538
Cash and cash equivalents at end of
period $816 $240
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SOURCE Worthington Industries, Inc.
CONTACT: Cathy Mayne Lyttle, VP, Corporate Communications, +1-614-438-
3077, or e-mail, cmlyttle@WorthingtonIndustries.com, or Allison McFerren
Sanders, Director, Investor Relations, +1-614-840-3133, or e-mail,
asanders@WorthingtonIndustries.com, both of Worthington Industries, Inc./