Worthington Industries, Inc.
) earnings for fiscal fourth quarter 2012 were 75 cents per share,
comfortably surpassing the Zacks Consensus Estimate of 54 cents.
Results improved 7% from the year ago quarter of 70 cents per
Total revenue in the quarter increased 12% to $755.4 million
beating the Zacks Consensus Estimate of $682 million. The
improvement stemmed largely from acquisitions, higher volumes and
average selling prices in Pressure Cylinders, partially offset by
negative impact of deconsolidation transactions.
Cost of goods sold rose 14% to $634 million in the quarter. Gross
margin improved 2% to $121.5 million.
SG&A expenses increased 4.3% to $64.3 million. Operating
income fell 4.7% to $59.5 million during the quarter. This included
the net gains of $2.3 million in the quarter and $4.8 million in
the prior year quarter, pertaining to the impact of impairments,
restructuring charges and the joint venture transactions. Excluding
these items, adjusted operating income (excluding one time gains)
was $57.2 million in the reported quarter compared to $57.5 million
in the year ago quarter.
AK STEEL HLDG (AKS): Free Stock Analysis Report
GIBRALTAR INDUS (ROCK): Free Stock Analysis
WORTHINGTON IND (WOR): Free Stock Analysis
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Fiscal 2012 Performance
For the full year 2012, Worthington reported earnings of $1.65 per
share, exceeding the Zacks Consensus Estimate of $1.49. Total
revenues improved 4% year over year to $2,534.7 million, ahead of
the Zacks Consensus Estimate of $4,461 million. The growth in the
top-line largely stemmed from added sales from acquisitions, volume
growth in Steel Processing and higher overall average selling
prices, partially offset by negative impact of deconsolidation of
Metal Framing and Automotive Body Panels segments.
Total revenue in the Steel Processing segment fell marginally to
$429.6 million. Volumes improved 2.8% to 797 tons during the
quarter. Revenues fell as the volume growth was more than offset by
lower average selling prices.
Pressure Cylinders segment's total revenues increased 28.9% to
$236.8 million. Volumes increased 45.8% to 24,011 tons in the
reported quarter. Improvement in revenues was attributable to
recent acquisitions and a favorable sales mix resulting in higher
average selling prices.
During the quarter, Engineered Cabs segment reported total revenues
of $64.1 million.
Cash and cash equivalents were $41.0 million as of May 31, 2012,
compared with $56.2 million as of May 31, 2011. Long-term debt
increased to $257.5 million at the end of May 31, 2012, compared
with $250.3 million at the end of May 31, 2011. Cash provided by
operating activities amounted to $36.7 million during the
fourth-quarter 2012, compared to $16.6 million in the year-ago
The company hopes to continue with earnings growth. It expects its
core businesses to benefit from its growth strategies that include
acquisitions coupled with expansion in product lines as well as
Worthington, may reap benefits from its core businesses and joint
ventures which would eventually help the company in improving its
growth prospects in the next few quarters. Demand is also expected
to remain strong in all the segments. However, the construction
market may remain constrained due to tight government spending.
Worthington competes with companies like
AK Steel Holding Corporation
Gibraltar Industries, Inc.
). The stock retains a short-term Zacks #4 Rank (Sell). We have a
long-term Neutral recommendation on Worthington.