News Details

Columbus, Ohio, August 15, 2000 – Worthington Industries, Inc. (NYSE: WOR) said today that, although the quarter has not ended, it expects first quarter earnings per share to be as low as $0.15. The Company believes that full year consensus estimates of $1.26 remain achievable.

When fiscal year-end results were released in June, the Company cautioned that the three raw material price increases incurred over the six months from October 1999, would have a negative impact on margins, and they did. The Company expected to be able to pass along some of the higher steel costs to customers during the first quarter. As the quarter unfolded, however, raw material prices fell steeper and more rapidly than expected. This made it difficult to obtain anticipated customer pricing levels, especially in the Processed Steel segment. During the first two months of the fiscal quarter, the Company also experienced lower than expected revenues as a result of decreased tolling business from the mills and continued weakness in the Pressure Cylinders segment.

“Despite a challenging first quarter, the outlook for the year remains good”, said John P. McConnell, Chairman and CEO, of Worthington. “The extent to which recent raw material pricing declines exceeded our expectations in the first quarter is the extent to which we will benefit in the remainder of the year. The favorable impact from recent declines in steel pricing will be felt beginning in the second quarter. These short-term market fluctuations in pricing do not change our long-term strategic direction. Improved utilization at our newer facilities and our growth initiatives will favorably impact profitability as the year progresses.”

The Company directs readers to a press release captioned “Worthington Industries to Acquire the Techs” issued concurrently.

Worthington Industries is a leading diversified metal processing company with annual 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 automotive aftermarket stampings, pressure cylinders, metal framing, metal ceiling grid systems and laser welded blanks. The Company employs 8,000 people and operates 55 facilities in 11 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 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, earnings and growth, raw material pricing, plant startups, utilization and capabilities 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; and other risks described from time to time in the Company's filings with the Securities and Exchange Commission.