Worthington Industries Records Higher Steel Prices in Q1 – Commodity Commentary

By Dave Sébastien

Worthington Industries Inc. increased sales for the three months ended Aug. 31 as it recorded higher average direct selling prices in steel processing.

On sale:

“Net sales for the first quarter of fiscal 2022 were $ 1.1 billion compared to $ 702.9 million, an increase of 58% over the comparable quarter of the previous year. noted.

“Gross margin increased $ 106.0 million from the prior year quarter to $ 219.4 million, primarily due to improved direct spreads in steel processing and, to a lesser extent, higher overall volume. “

“Income from equity of unconsolidated joint ventures increased $ 29.3 million from the prior year quarter to $ 52.9 million, driven by higher contributions from ClarkDietrich, WAVE and Serviacero,” where results benefited from rising steel prices. “

President and CEO Andy Rose said, “We have had strong demand in our main end markets, but we have also continued to face challenges with client closures due to the shortage of semi. – conductors and other parts, labor availability and tight supply chains that kept the quarter from getting even better. “

On his outlook:

“The company is performing well and while demand from our main end markets remains healthy, we will likely continue to face labor issues and be affected by declining automotive demand due to the shortage. current semiconductor, ”said Mr. Rose.

Write to Dave Sebastian at [email protected]

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