) saw its profit drop in fourth quarter fiscal 2013 (ended May
31) as it had to take sizable impairment and restructuring
charges. Worthington logged earnings of 46 cents a share in the
quarter, down from 75 cents earned a year ago. Profit slipped 36%
year over year to $33.5 million.
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Barring charges and inventory holding losses, earnings came in at
62 cents a share, falling short of the Zacks Consensus Estimate
by a nickel.
Revenue fell 7% year over year to $704.1 million and trailed the
Zacks Consensus Estimate of $715 million. The top line was hurt
by lower average selling prices due to falling market price of
Gross margin fell to 15.8% from 16.1% a year ago. Lower volume
contributed to the decline.
For the full year, profit climbed 18% year over year to $136.4
million or $1.91 per share. Adjusted earnings (excluding items)
were $2.10 per share, missing the Zacks Consensus Estimate by a
Revenues for fiscal 2013 rose 3% year over year to $2,612.2
million, aided by acquisitions. It, however, missed the Zacks
Consensus Estimate of $2,631 million.
Revenues from the core Steel Processing division dipped 13% year
over year to $374.6 million in the fourth quarter on lower
pricing and direct and toll processing volumes. Volumes fell 12%
year over year to 703 units in the quarter.
Worthington's Pressure Cylinders segment sales rose 7% year over
year to $252.3 million, buoyed by the acquisition of leading
atmospheric tanks and pressure vessels maker Westerman Companies
and steel and fiberglass tanks maker Palmer. Volumes went down 3%
to 23,363 units.
The Engineered Cabs segment, which consists of the operations of
Angus Industries Inc. (acquired in late 2011), posted revenues of
$55.1 million in the quarter. The division's results were
affected lower volumes due to production delays and weak demand.
Worthington ended fiscal 2013 with cash and cash equivalents of
$51.4 million, up 25% year over year. Long-term debt increased
58% year over year to $406.2 million. Operating cash flows for
the full year increased 57% year over year to $273 million.
Worthington's board, on Jun 26, approved 2 cents per share
increase in its quarterly dividend to 15 cents per share. The
revised dividend is payable on Sep 27, 2013, to shareholders of
record as of Sep 13, 2013.
Worthington is positive about the new fiscal year and expects
growth both organically and from its acquisitions. The company is
seeing strength in automotive market and envisions some
improvement in commercial construction. Worthington expects its
engineered cabs business to gain from the full implementation of
the transformation to optimize and improve operations.
Worthington is engaged in processing steel for application in the
automotive, construction, hardware, agricultural, aerospace and
other industries. The company makes a range of processed steel
items, pressure cylinders (including oxygen and helium tanks and
hand torches), metal framing products, racks, shipping pallets,
airbrake tanks and consumer products. The company operates 83
facilities throughout 11 nations.
Worthington currently retains a Zacks Rank #3 (Hold).
Other companies in the metal processing and fabrication industry
having favorable Zacks Rank are
Kaiser Aluminum Corporation
Northwest Pipe Co.
). While NSK holds a Zacks Rank #1 (Strong Buy), Kaiser Aluminum
and Northwest Pipe retain a Zacks Rank #2 (Buy).