COLUMBUS, Ohio, Dec. 19 /PRNewswire/ -- Worthington Industries, Inc.
(NYSE: WOR) today reported results for the three and six month periods ended
November 30, 2001. For the quarter, net income increased 65% to $11.3 million
compared to $6.9 million for the same period a year ago, and diluted earnings
per share increased 63% to $0.13 compared to $0.08 last year. Sales were
$410.4 million, a decrease of 10% from $457.4 million last year.
For the six-month period, earnings increased 32% from the prior year to
$25.6 million from $19.4 million, and diluted earnings per share increased
30% to $0.30 from $0.23. Sales decreased 13% to $819.9 million from $941.6
million.
While these earnings compare favorably to the year ago time period, they
reflect a recessionary environment that continues to depress performance in
all of the business segments and joint ventures of Worthington Industries.
Success in new customer development efforts and improvement in margins
helped to boost profitability in the company's largest business segment,
Processed Steel Products. Aside from that business segment, results were down
from last year in Metal Framing and Pressure Cylinders and in unconsolidated
joint venture income. Volume declines were the primary cause of the shortfall
except in Metal Framing, which continues to expand market share despite
slowing business conditions and highly competitive pricing.
Controlled expenses, especially financing costs, helped offset increased
bad debt expense resulting from the deteriorating financial condition of some
of the customer base.
"We continue to instill more discipline throughout the company as we work
to streamline our business platform to generate maximum earnings," said John
P. McConnell, Chairman and CEO of Worthington Industries. "This discipline is
apparent in our expense controls, balance sheet strength, improved working
capital management and capital investment decisions which have all contributed
to profitability in today's very difficult environment. While profitability
is an accomplishment, current results are well below what we are capable of
producing once the economy recovers and our assets are utilized most
efficiently," concluded McConnell.
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 7,500 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 Six Months Ended
Nov. 30, Nov. 30,
2001 2000 2001 2000
(Unaudited) (Unaudited)
Net Sales:
Processed Steel Products $275,535 $306,578 $541,106 $624,691
Metal Framing 75,691 89,215 155,237 184,225
Pressure Cylinders 56,063 59,815 117,665 129,791
Other 3,090 1,761 5,929 2,886
Total Net Sales 410,379 457,369 819,937 941,593
Cost of Goods Sold 349,082 400,748 698,643 821,094
Gross Margin 61,297 56,621 121,294 120,499
Selling, General & Administrative
Expense 41,203 41,975 78,614 83,966
Operating Income:
Processed Steel Products 14,903 5,029 28,441 14,393
Metal Framing 3,261 7,414 9,827 16,441
Pressure Cylinders 2,521 3,172 4,338 8,485
Other (591) (969) 74 (2,786)
Total Operating Income 20,094 14,646 42,680 36,533
Other Income (Expense):
Miscellaneous Expense (1,655) (430) (1,128) (347)
Interest Expense (5,688) (9,550) (11,185) (18,907)
Equity in Net Income of
Unconsolidated Affiliates 5,081 6,168 9,961 13,204
Earnings Before Taxes 17,832 10,834 40,328 30,483
Income Taxes 6,509 3,954 14,720 11,126
Net Earnings $11,323 $6,880 $25,608 $19,357
Common Shares Outstanding at End
of Period 85,392 85,755 85,392 85,755
Average Common Shares Outstanding
- Diluted 85,775 85,755 85,787 85,755
Earnings Per Share - Diluted $0.13 $0.08 $0.30 $0.23
WORTHINGTON INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
Nov. 30, May 31,
2001 2001
(Unaudited) (Audited)
ASSETS
Current Assets
Cash and cash equivalents $819 $194
Accounts receivable, net 125,946 169,330
Inventories 229,173 227,506
Other current assets 45,870 52,689
Total Current Assets 401,808 449,719
Investments in Unconsolidated Affiliates 63,991 58,638
Goodwill 76,023 76,439
Other Assets 56,015 54,317
Property, Plant and Equipment, net 829,514 836,749
Total Assets $1,427,351 $1,475,862
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $189,949 $207,568
Notes payable 5,433 13,794
Current maturities of long-term debt 1,811 1,748
Other current liabilities 78,792 83,509
Total Current Liabilities 275,985 306,619
Other Liabilities 69,448 69,396
Long-Term Debt 291,829 309,208
Deferred Income Taxes 144,259 140,974
Shareholders' Equity 645,830 649,665
Total Liabilities and
Shareholders' Equity $1,427,351 $1,475,862
WORTHINGTON INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Six Months Ended
Nov. 30,
2001 2000
(Unaudited) Unaudited)
Operating Activities
Net Earnings $25,608 $19,357
Adjustments to reconcile net earnings to
net cash provided by operating
activities:
Depreciation and amortization 34,406 35,848
Other adjustments (4,484) (6,563)
Changes in current assets and
liabilities 13,562 120,001
Net Cash Provided By Operating
Activities 69,092 168,643
Investing Activities
Investment in property, plant and
equipment, net (25,147) (32,697)
Proceeds from sale of assets 9,651 719
Net Cash Used By Investing Activities (15,496) (31,978)
Financing Activities
Payments on short-term borrowings (8,361) (103,502)
Proceeds from long-term debt - 482
Principal payments on long-term debt (17,488) (1,228)
Repurchase of common shares - (737)
Dividends paid (27,323) (27,441)
Other 201 (3,841)
Net Cash Used By Financing Activities (52,971) (136,267)
Increase in cash and cash equivalents 625 398
Cash and cash equivalents at
beginning of period 194 538
Cash and cash equivalents at end of period $819 $936
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./