Ohio-Based metal manufacturing company Worthington Industries has announced its second quarter fiscal 2020 results, reporting net sales of $827.6m and net earnings of $52.1m, ended 30th November 2019.
Net sales for the quarter were down 14% from the comparable quarter in the prior year, primarily driven by lower average direct selling prices due to a decline in the market price of steel and lower direct volume in Steel Processing.
Gross margin decreased $0.3m from the prior year quarter to $120.6m as higher contributions from Pressure Cylinders were largely offset by declines at Steel Processing.
Operating income for the current quarter was down $3.7m from the prior year quarter to $32.1m.
“We delivered solid results for the quarter despite some market softness and challenging conditions in steel pricing,” said John McConnell, Chairman and CEO of Worthington.
“Pressure Cylinders volumes were up, led by strong demand in the consumer products and oil and gas businesses.”
“Overall, we returned to year-over-year earnings growth for the quarter and I’m pleased with the way our teams continued to perform in markets that are being impacted by trade wars and economic uncertainty.”
Quarterly Segment Results
Steel Processing’s net sales totalled $516.9m, down 19%, or $118.1m, from the comparable prior year quarter driven by lower average selling prices and lower direct volume, partially offset by higher toll volume.
Pressure Cylinders’ net sales totalled $290.1m, down 1%, or $4.3m, from the comparable prior year quarter due to the impact of divestures and lower volumes in the industrial products business, partially offset by higher volumes in both the consumer products and oil and gas equipment businesses.
“The company is operating well, and we are optimistic about our momentum going forward,” McConnell continued.
“We believe most of our markets should remain steady but do anticipate continued weakness in Europe and will remain focused on driving future improvement through solid execution of our strategies.”