Worthington Industries, Inc. has posted positive financials in its fiscal 2017 fourth quarter, boosted by a 6% sales lift in its Pressure Cylinders division.
For fiscal year ended May 2017, the company reported net sales of $3bn – a 7% increase driven primarily by higher average selling prices in Steel Processing. Fiscal Q4 2017, which ended 31st May, contributed $845.3m to this total.
Net sales in its Pressure Cylinders’ division totalled $231.5m in Q4, an increase of 6% over the year prior. The company attributes this $12.9m increase to higher contributions from the oil & gas equipment and industrial products businesses.
Operating income of $18.6m in the segment was $5.7m higher than the prior year quarter, driven primarily by market improvement in the oil & gas equipment business but partially offset by a decline in the alternative fuels business.
The company also acquired leading pressure cylinder manufacturer Amtrol at the beginning of the month for $283m, augmenting its offering in Europe and the Middle East.
Chairman and CEO John McConnell observed, “While we benefited from rising steel prices, we also saw increases in volume for Steel Processing with improvements in markets such as agriculture. Pressure Cylinders performance was steady for the year despite headwinds caused by softness in the oil & gas equipment market, which showed signs of improving in the fourth quarter.”
He added that he was “optimistic” about the company’s outlook and stated, “We think the addition of Amtrol, along with the successful traction of Transformation in Pressure Cylinders, provide good momentum and have well-positioned for growth.”