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Feb 28, 2023
Worthington Q3 2023 Earnings Report
Reported solid results despite inventory holding losses from falling steel prices, with a positive trend in rising steel prices and steady demand across end markets.
Key Takeaways
Worthington Industries reported Q3 fiscal year 2023 earnings of $0.94 per share, or $1.04 per share excluding unique items related to the planned business separation. Net sales were $1.1 billion, a 20% decrease from the prior year, while gross profit increased slightly to $144 million. The company is progressing well with its planned separation into two distinct companies, expected to be completed by early calendar 2024.
Q3 earnings were $0.94 per share, or $1.04 per share excluding separation-related expenses.
Net sales decreased by 20% to $1.1 billion due to lower average selling prices in Steel Processing.
Gross profit increased to $144 million, with a gross margin of 13%.
The company is on track with its planned separation into two companies, expected in early calendar 2024.
Worthington
Worthington
Worthington Revenue by Segment
Revenue by Segment
Consumer Products Revenue
CapyFin.comBuilding Products Revenue
CapyFin.com Forward Guidance
The company anticipates a swing to inventory holding gains in Q4, potentially offsetting the losses of $27 million in Q3. They expect sequential growth in both Consumer and Building Products businesses in Q4, which is a seasonally strong period.
Positive Outlook
- Anticipated inventory holding gains in Q4 to offset Q3 losses.
- Expected sequential growth in Consumer Products due to strong seasonal demand.
- Expected sequential growth in Building Products due to strong seasonal demand.
- Positive outlook for the Steel Processing business with rising steel prices.
- Benefits from government investment spending from the Inflation Reduction Act, Chips and Science Act, and Infrastructure Investment and Jobs Act.
Challenges Ahead
- Potential headwind for commercial construction projects due to higher interest rates.
- Potential headwind for auto financing due to higher interest rates.
- Uncertainty in the financial markets and its potential impact on the economy.
- Volatility in supply chains and commodity prices.
- Challenging operating environment in Europe for Sustainable Energy Solutions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income