Annual EPS Up 24% to $1.12 Per Share Excluding Non-recurring Loss
Annual Sales Increased 11% to $2.0 Billion
Fourth Quarter EPS of $0.32 Per Share Excluding Non-recurring Loss
Columbus, Ohio, June 21, 2000 – Worthington Industries, Inc. (NYSE-WOR) today reported increased sales and earnings for the fiscal year ended May 31, 2000.
Excluding the impact of a non-recurring loss, earnings for the full year were $1.12 per diluted share, up 24% as compared to earnings from continuing operations of $0.90 per diluted share reported last year. Sales increased 11% to $2.0 billion, from $1.8 billion for fiscal 1999.
Excluding the impact of the non-recurring loss, fourth quarter earnings were $27.3 million, or $0.32 per diluted share. This compares to earnings from continuing operations of $28.5 million, or $0.31 per diluted share, for the fiscal 1999 fourth quarter. Sales were up 9%, to $539.8 million, from $495.3 million for the comparable quarter last year.
Current year and fourth quarter earnings were impacted by an $8.6 million pre-tax loss from the Company's investment in Rouge Industries, Inc. This previously unrealized loss had been reported as a reduction in shareholders equity. On March 1, 1997, the Company issued debt exchangeable for common stock (DECS). The loss was realized when the Company used the Rouge stock to satisfy the DECS at maturity on March 1, 2000.
Including the impact of the non-recurring loss, current year earnings were $94.2 million, or $1.06 per diluted share, and fourth quarter earnings were $22.0 million, or $0.25 per diluted share.
“The benefits of our $1 billion multi-year investment program were readily apparent in fiscal 2000,” said John P. McConnell, Chairman and CEO of Worthington. “Several of these investments were major contributors to this year's top and bottom line growth. Dietrich, our metal framing business, saw profitability increase 70%, and Decatur, our new
steel processing facility in Alabama, reached the breakeven point on an operating income basis. Our newer facilities at Delta, OH and Spartan Steel Coating were also major positives. And, investment for the future continues. Recently announced initiatives include a production facility in Clyde, OH; a dry lubrication line in Monroe, OH; a Mexican facility for the TWB joint venture; and a galvanizing joint venture in the southeast. In addition, we continue to look for appropriate acquisitions and have identified a number of profitable growth opportunities.”
For the year, the Company experienced double digit growth in virtually all measures – sales, gross margin, operating income and earnings per share. In the fourth quarter, weaker demand, both for refrigerant cylinder products and in the European cylinder market, was offset by strength in other cylinder products and in other business segments. In addition, strong operating income margins in Metal Framing helped offset declining margins in Processed Steel Products.
“This diversification differentiates us from our peers,” added McConnell. “Our mix of businesses, which all share a common core competency in metal fabricating, provide for more diversification than the typical company in our industry, through widely varying geographic markets, products and customers, and we see the positive effects in our financial results.”
“I'm also proud of the fact that we shared these returns with our shareholders,” continued McConnell. During the year the Company announced a dividend increase for the thirty-second consecutive year and repurchased 4.6 million shares, bringing the two-year total repurchases to 11.4 million, or 13% of outstanding shares.
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 54 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 and growth, stock appreciation, plant startups, 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.
