Worthington Industries Q2 Profit Down, But Net Sales Rise; Stock Up

(RTTNews) - Worthington Industries Inc. (WOR) reported that net earnings attributable to controlling interest for its fiscal 2014 second quarter ended November 30, 2013 was $22.98 million, or $0.32 per share, down from $31.83 million or $0.45 per share in the second quarter of the prior year.

Net earnings in the latest-quarter included non-cash, pre-tax impairment charges of $30.7 million related to the write-off of certain trade name assets in connection with a branding initiative launched during the quarter to re-brand substantially all of the Company's businesses under the Worthington Industries name. Net earnings also include the impact of a pre-tax gain of $2.5 million within miscellaneous income related to insurance proceeds received during the quarter for property damaged in a fire at the Company's Pressure Cylinders facility in Austria on August 19, 2013.

Adding back the net after tax impact of these two items, the company said, it would increase earnings by $0.25 per share. This is above the $0.54 per share consensus estimate of eight analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.

Net sales for the second quarter ended November 30, 2013, were $769.9 million, up 24% from the comparable quarter in the prior year, when net sales were $622.6 million. The increase resulted from higher overall volumes, which were aided by the impact of acquisitions. Six analysts estimated revenues of $694.26 million for the quarter.

"We had a very good second quarter with strong results from Steel Processing and solid results from Pressure Cylinders and our joint ventures," said John McConnell, Chairman and CEO.

McConnell said, "We continue to look for opportunities to invest in new and growing markets and to develop new products for our customers. We have driven results in an environment where the U.S. economy has been sluggish, though gaining momentum, and Europe remains flat. We believe we can continue to do so."

In the pre-market trade, WOR is currently trading at $46.81, up $4.14 or 9.70%