Reflecting on the company’s fourth quarter (Q4) 2021 results, Worthington Industries’ President and CEO, Andy Rose, said the company saw robust demand across most of its businesses and joint ventures.
Highlighting positive growth, the Ohio-based company reported net sales of $978.3m for the quarter, an increase of over 60% over the comparable quarter in the previous year.
Net earnings of $113.6m were also reported, or $2.15 per diluted share.
Worthington attributed the increase to overall volume improvements in both Steel Processing and Pressure Cylinders, as well as higher average direct selling prices in Steel Processing.
Gross margin increased $136.3 million over the prior year quarter to $226.1 million, primarily due to improved direct spreads in steel processing and the impact of higher overall volumes.
Operating income was $110.5m, an increase of $104.1m over the prior year quarter.
Focusing on the quarter, Andy Rose, President and CEO of Worthington, said, “We had an exceptional fiscal 2021 generating record fourth quarter and annual earnings per share. While we benefitted from rising steel prices, we also saw robust demand across most of our businesses and joint ventures.”
“I am very pleased with the way our teams executed this past year coming out of the pandemic, and I want to thank all of our employees for their hard work and continuing commitment to making the Company better and growing earnings for our shareholders.”
Results by segment
Worthington’s Steel Processing segment reported net sales of $655.2m, up 100%, or $327m, over the comparable prior year quarter when Covid-19 related shutdowns significantly reduced demand. The increase in net sales was driven by higher average direct selling prices and higher volume.
Operating income of $94.3m was $96.1m higher than the loss in the prior year quarter on improved direct spreads and the impact of higher volume.
The company’s Pressure Cylinders segment reported net sales of $323.1m, up 14%, or $40.2m, over the comparable prior year quarter due to higher volumes in both the consumer and industrial products businesses.
Operating income of $13.0m was $0.5m less than the prior year quarter.
“As we enter our new fiscal year, demand levels and backlogs are quite good across our key end markets. Going forward, we expect results will be positively impacted by our recent acquisitions and actions we have taken to divest underperforming assets,” Rose added.
“Our businesses have solid growth strategies, underpinned by innovation, transformation and M&A, and our new reporting segments will allow our teams to reshape these businesses around larger, more attractive end markets.”