Worthington Industries, Inc. an Ohio-based US metals manufacturing company, has released its fourth quarter (Q4) and full year results, ended 31st May (2019).

Worthington Industries reported net sales of $938.8m and net earnings of $37.7m, or $0.66 per diluted share, for its fiscal 2019 Q4.

Net earnings in the quarter were negatively impacted by pre-tax impairment and restructuring charges of $8.5m, including $4m of which was recording in equity income.

For the fiscal year ended 31st May (2019), the company reported net sales of $3.8bn and net earnings of $153.5m, or $2.61 per diluted share, down from net earnings of $194.8m, or $3.09 per diluted share in the prior year.

“We finished our 2019 fiscal year with solid results in the fourth quarter despite a challenging steel pricing environment,”

John McConnell, Chairman and CEO.

Net earnings in the current fiscal year were affected by a replacement programme related to certain composite hydrogen fuel tanks, resulting in a pre-tax charge of $13m, or $0.17 per diluted share.

“We finished our 2019 fiscal year with solid results in the fourth quarter despite a challenging steel pricing environment,” said John McConnell, Chairman and CEO.

“Margins across all of our business improved from the third quarter, particularly in Pressure Cylinders. I’d like to thank our employees for their continued commitment during the year as we worked hard to navigate the impacts of tariffs on our businesses.”

Quarterly Segments Results 

Steel Processing

Net sales totalled $584.4m, down 10%, or $68.4m, from the prior year quarter, driven by lower direct volume, partially offset by higher direct average selling prices. Operating income of $14.9m was $32.7 less than the prior year quarter on the combined impact of lower direct volumes and a compressed pricing spread driven by current quarter inventory holding losses versus prior year holding gains. 

Pressure Cylinders

Net sales totalled $322.2m, down 5%, or $17.7m, from the prior year quarter due to the impact of divestitures. Operating income of $21.4m was $50.7m higher than the prior year quarter on lower impairment and restructuring charges.

Engineered Cabs

Net sales totalled $32.1m, up $4.9m, or 18%, over the prior year quarter on higher volume and average selling prices. The operating loss of $3.2m was $2.1m less than the prior year quarter on higher net sales and gross margin.

Outlook

“As we enter our new fiscal year, we expect to see continued positive momentum for our three-tiered strategy of growth through transformation, innovation and acquisitions,” said McConnell.

“While we expect steel pricing and a softening automotive market will continue to be headwinds, our growth levers combined with investments in technology have us positioned well to deliver on our goal of year over year earnings growth.”

“I am also proud to announce that today our board approved an increase to our dividend marking the ninth straight year of increases.”