Columbus, Ohio, March 15, 1999 --- Worthington Industries, Inc. (Nasdaq:WTHG) today reported results for the three and nine months ended February 28, 1999. Sales for the quarter were a record $422 million, an increase of 6% from $398 million last year.
For the fiscal 1999 third quarter, earnings from continuing operations were $19.1 million, or $0.21 per diluted share. This compares with $18.8 million, or $0.19 per diluted share, for the same period a year ago. These third quarter results include a $2.5 million after tax gain from an insurance settlement as a result of a fire at the Company's Monroe, Ohio steel processing facility, offset by a $2.2 million after tax charge for Year 2000 compliance efforts.
Including a $16.9 million, or $0.19 per diluted share loss from discontinued operations, resulting primarily from the recently announced asset sales, the Company's net earnings for the fiscal 1999 third quarter amounted to $2.2 million, or $.02 per diluted share.
For the fiscal 1999 nine month period, earnings from continuing operations were $55.1 million, or $0.59 per diluted share, compared with $56.8 million, or $0.59 per diluted share in the prior year.
The Company's net earnings for the nine month period, which include the Company's discontinued operations, were $40.9 million, or $0.44 per diluted share. Sales totaled $1.3 billion, up 8% from $1.2 billion in fiscal 1998.
"We are pleased with the results from our continuing operations during the quarter," said John P. McConnell, Chairman and Chief Executive Officer of Worthington Industries. "We achieved these results in spite of expected start up costs from our new Decatur, Alabama and Spartan Steel Coating steel processing facilities that have been dilutive to our bottom line this fiscal year. Earnings per share excluding start-up operations were up about 40% as our joint ventures and cylinder operations had excellent results for the quarter. Our cylinder business continued its global growth by expanding into the Czech Republic."
McConnell added, "We made significant progress during the quarter with our divestiture program. We completed the sale of Buckeye Steel Castings and reached an agreement to sell the non-automotive operations of Worthington Custom Plastics. We will have received nearly $200 million from the sale or pending sale of six companies announced to date through our divestiture program. We have used the proceeds to repurchase shares of our stock and pay down debt. These transactions have brought us closer to achieving our goal of concentrating our focus on our core steel processing and metal fabricating businesses."
"In addition to sharpening the Company's business focus, we are completing a corporate reorganization and have strengthened our management team for the future," said McConnell. "We announced during the quarter that John Christie will join Worthington on June 1 as President and Chief Operating Officer, he will succeed Don Malenick, who currently serves in that position and will retire May 31 after 41 years with the Company. John has extensive management and operational experience and comes to us after serving as President of JMAC, Inc. the Investment Company of the McConnell family."
"Additionally, Dale Brinkman was named Vice President - Administration and General Counsel, Bruce Ruhl was named Vice President Purchasing and Cathy Mayne Lyttle was named Vice President Communications. They join the rest of our senior management team. We look forward to working together to guide Worthington to a successful future," McConnell added.
Worthington Industries is a leading diversified metal processing company with annualized sales of approximately $2 billion. The Columbus, Ohio based Company is North America's premier value-added steel processor and a leader in manufactured metal products such as pressure cylinders, metal framing, automotive aftermarket stampings, metal ceiling grid systems and laser welded blanks. The Company employs 7,500 people and operates 52 facilities in 10 countries.
Founded in 1955, the Company operates under a long-standing corporate philosophy rooted in the golden rule, with earning money for its shareholders as the first corporate goal. This philosophy, an unwavering commitment to the customer, and one of the strongest employee/employer partnerships in American industry serve as the Company's foundation.
Safe Harbor Statement
The Company wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 ("the Act"). Statements by the Company relating to future revenues and growth, stock appreciation, plant start-ups, capabilities, the impact of year 2000 and other statements which are not historical information constitute "forward looking statements" within the meaning of the Act. All forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those projected. Factors that could cause actual results to differ materially include, but are not limited to, the following: general economic conditions; conditions in the Company's major markets; competitive factors and pricing pressures; product demand and changes in product mix; changes in pricing or availability of raw material, particularly steel; delays in construction or equipment supply; year 2000 issues, and other risks described from time to time in the Company's filings with the Securities and Exchange Commission.
THE YEAR 2000 STATEMENTS CONTAINED HEREIN ARE YEAR 2000 READINESS DISCLOSURES (as defined under the Year 2000 Information and Readiness Act) and shall be treated as such for all purposes permissible under such Act. These statements are based on management's analysis of all information obtained to date and use what management believes to be reasonable assumptions in estimating costs, project timing, and the occurrence of future events. There can be no assurance that actual costs will not exceed any stated estimates, that all possible year 2000 issues will be resolved by the stated times, or that there will be no adverse impact on the Company due to system failures caused by either internal or external year 2000 issues.
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