- Worthington Industries, Inc.
) earnings of 52 cents a share for third-quarter fiscal 2013
(ended Feb 28, 2013) beat the Zacks Consensus Estimate by 3 cents
and exceeded the year-ago earnings of 37 cents.
Profit shot up 43% year over year to $37.1 million, aided by
healthy results from the company's pressure cylinders business.
Both restructuring and joint venture transaction costs fell
significantly in the reported quarter, thereby boosting the
Revenue edged up 1% year over year to $619.5 million but
missed the Zacks Consensus Estimate of $677 million. Higher
volumes aided by acquisitions were partly masked by lower average
selling prices due to falling market price of steel.
Gross margin increased to 15.7% from 13.6% a year ago.
Acquisitions and better product mix in pressure cylinders
business contributed to the increase.
Revenues in the core Steel Processing division fell 5% year
over year to $349.6 million on lower pricing. Volumes fell 11%
year over year to 636 units in the quarter.
Worthington's Pressure Cylinders segment was the bright spot
with revenues rising 9% year over year to $205.2 million, buoyed
by the acquisition of leading atmospheric tanks and pressure
vessels maker Westerman Companies. Volumes edged down 0.4% to
The Engineered Cabs segment, which consists of the operations
of Angus Industries Inc. (acquired in late 2011), posted revenues
of $48.6 million in the quarter. The division's results were
affected lower volumes due to production delays.
Worthington exited the quarter with cash and cash equivalents
of $37.4 million, up 6% year over year. Long-term debt increased
61% year over year to $406.5 million. Operating cash flows
decreased 58% year over year to $36.3 million.
Moving ahead, Worthington expects a favorable environment to
support its results in the fourth quarter. The company remains
committed to expand its capabilities in the energy market.
Worthington will continue to explore additional opportunities for
growth both organically and through new businesses.
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 80 facilities throughout 12 nations.
Worthington recently achieved the "Partner-Level Supplier"
recognition for 2012 in the John Deere achieving excellence
program. It is the highest supplier rating of
Deere & Company
Worthington currently retains a Zacks Rank #2 (Buy).
Other metal processors worth considering are
). Both hold a Zacks Rank #2 (Buy).
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