Categories Earnings, Other Industries

Worthington Industries Q1 profit jumps 21%

Worthington Industries (WOR) reported a 21% jump in earnings for the first quarter helped by favorable pricing spread in Steel Processing and overall improvements in Pressure Cylinders. Following this, the metals manufacturing company’s stock inched up 0.45% in the premarket session.

Earnings for the quarter climbed 20.7% to $54.9 million or $0.91 per share. The results included net pre-tax impairment and restructuring charges totaling $1.4 million, which lowered earnings per share by $0.01.

Net sales grew 16.5% to $988.1 million, driven by higher average direct selling prices and higher direct volume in Steel Processing and the combination of higher volume and an improved product mix in Pressure Cylinders.

Gross margin increased by 8% year-over-year as a favorable pricing spread in Steel Processing and overall improvements in Pressure Cylinders were partially offset by declines at Engineered Cabs. Pricing spreads in Steel Processing benefited from significant inventory holding gains in the current quarter.

Steel Processing’s net sales grew 22% year-over-year driven by higher average direct selling prices and higher direct volume. Spreads in the current quarter benefited from significant inventory holding gains due to rising steel prices but were partially offset by softer scrap prices and unfavorable mark-to-market price adjustments on certain raw materials.

Pressure Cylinders’ net sales increased 11% on higher average selling prices and a favorable product mix in the industrial products business and higher volumes in consumer products. However, Engineered Cabs’ net sales fell by 14% due to lower volume.

Income tax expense rose to $14.5 million from $13.0 million in the prior year quarter. This was due primarily to the impact of favorable discrete items in the prior year quarter and higher earnings in the current quarter, partially offset by a lower statutory federal corporate income tax rate.

Shares of Worthington ended Tuesday’s regular session up 1.45% at $46.30 on the NYSE. The stock had risen over 5% for the year so far, while it had fallen more than 8% for the past year.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “Worthington Industries Q1 profit jumps 21%

Comments are closed.

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top