Worthington Industries, Inc.
) has entered into an agreement with Steffes Corporation to
acquire its tank manufacturing division for an undisclosed price.
Steffes is an oilfield storage tank manufacturing company
catering to the customers drilling in the Bakken shale and
Williston Basin. In 2013, the business generated $25 million in
The acquisition is a strategic fit for Worthington as it is
expected to enhance its energy business by adding the exposure to
Bakken shale, one of the most oil-rich areas in the country. The
acquisition will expand Worthington Industries' customer reach
and help to better serve its customers in the east, central and
also in the northwest region of the U.S.
Steffes' tank manufacturing facility, located in Dickinson, ND
and presently employing 35 workers, was started in 2007. The
additional capacity will uplift Worthington's existing operations
in Ohio and Kansas that manufacture steel and fiberglass storage
tanks, gas separators, gas production units and related wellhead
equipment for oil and gas exploration customers in the Marcellus,
Utica, Bakken and Mid-Continent regions.
Worthington posted its third-quarter fiscal 2014 (ended Feb 28,
2014) results on Mar 27. The company posted a profit of $40.6
million or 57 cents per share in the quarter, up 9.6% from $37.1
million or 52 cents a year ago.
Revenues rose 25% year over year to $773.2 million in the quarter
from $619.5 million recorded in the prior-year quarter. The top
line was driven by higher volumes stemming from acquisitions. The
company saw strength across its Steel Processing and Pressure
Cylinders divisions in the quarter.
Worthington remains positive about fourth-quarter fiscal 2014 and
continues to expect solid performance to complete the fiscal year
2014. It also anticipates growth both organically and from
Worthington currently retains a Zacks Rank #3 (Hold).
Some better ranked stocks in the metal processing and related
Norsk Hydro ASA
), all of which hold a Zacks Rank #2 (Buy).
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WORTHINGTON IND (WOR): Free Stock Analysis
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