Loading...
•
Nov 30, 2021
Worthington Q2 2022 Earnings Report
Reported record second quarter results driven by strong performance in Steel Processing and Building Products segments.
Key Takeaways
Worthington Industries reported net sales of $1.2 billion and net earnings of $110.3 million, or $2.15 per diluted share, for its fiscal 2022 second quarter. The results were driven by strong performance in the Steel Processing and Building Products segments.
Net sales increased by 69% to $1.2 billion compared to the prior year quarter, primarily driven by higher average direct selling prices in Steel Processing.
Gross margin increased to $184.6 million, primarily due to improved direct spreads in Steel Processing and higher overall volume.
Equity income from unconsolidated joint ventures increased to $60.2 million, driven by higher contributions from ClarkDietrich, WAVE and Serviacero.
The company closed on the acquisition of Tempel Steel, positioning it as a global leader in the electrical steel market.
Worthington
Worthington
Worthington Revenue by Segment
Revenue by Segment
Consumer Products Revenue
CapyFin.comBuilding Products Revenue
CapyFin.com Forward Guidance
The company anticipates healthy demand across its key end markets and is excited about the acquisition of Tempel Steel.
Positive Outlook
- Anticipates continued healthy demand across key end markets.
- The acquisition of Tempel Steel makes the company a global leader in the electrical steel market.
- Tempel Steel acquisition complements existing sustainable mobility offerings in lightweighting and hydrogen.
- The company is positioned to more widely serve rapidly growing global markets for electric vehicles and electricity infrastructure.
- Steel Processing continued to benefit from inventory holding gains
Challenges Ahead
- Consumer Products continued to feel the impact of higher input costs.
- Volume and mix in Sustainable Energy Solutions were negatively impacted by the ongoing semi-conductor chip shortage.
- Higher SG&A expense, up $14.0 million, on higher profit sharing and bonus expense.
- Cash decreased by $415.1 million from year-end primarily due to an increase in working capital associated with higher steel prices and the acquisition of the Shiloh Industries U.S. BlankLight® business.
- Volume in Sustainable Energy Solutions was also negatively impacted by the May 31, 2021, divestiture of the Liquified Petroleum Gas business in Poland.
Revenue & Expenses
Visualization of income flow from segment revenue to net income