Worthington Industries Q4 Profit Down - Update

(RTTNews) - Worthington Industries Inc. (WOR) on Wednesday reported a drop in profit for the fourth quarter, as revenues declined on lower steel prices and volumes.

Columbus, Ohio-based Worthington's fourth-quarter profit dropped to $28.9 million or $0.44 per share from $33.2 million or $0.47 per share last year.

The quarter was hit by impairment, restructuring and other charges which reduced earnings by $0.08 per share.

Analysts polled by Thomson Reuters expected the company to earn $0.46 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Net sales for the fourth quarter declined to $846.0 million from $891.0 million a year ago. Analysts had a consensus revenue estimate of $835.87 million for the quarter.

Sales for the quarter dropped largely due to lower volume in Steel Processing and Pressure Cylinders segments, and lower average selling prices in Steel Processing as a result of lower steel prices.

Commenting on the weak results, CEO John McConnell said, "There were a number of factors that contributed to the softer year-over-year results, including falling steel prices, the downturn in oil and gas markets, and operations issues at certain facilities which are being addressed. We continue to pursue growth opportunities, organically as well as through acquisitions."

Steel Processing unit's sales dropped 4 percent to $540.0 million, while Pressure Cylinders' revenues declined 5 percent to $251.6 million. Engineered cabs revenues dropped to $46.5 million from $52.7 million a year ago.

Moving ahead, McConnell said, "We are seeing a more stabilized steel pricing environment."

Worthington lifted its quarterly dividend by a penny to $0.19 per share, payable on September 29 to shareholders of record on September 15.

WOR closed Wednesday's regular trading at $28.22, down $0.27 or 0.95%, on the NYSE.