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Worthington Industries Reports First Quarter Results


COLUMBUS, Ohio, Sept. 19 /PRNewswire/ -- Worthington Industries, Inc. (NYSE: WOR) today reported results for the three months ended August 31, 2001. For the quarter, earnings per diluted share were $0.17, compared to $0.15 reported last year. Sales were $409.6 million, a decrease of 15% from $484.2 million last year.

For the fiscal 2002 first quarter, net income was $14.3 million, compared to $12.5 million for the same period last year. Net income included a $1.2 million gain from the sale of company aircraft.

"Although net income remains well below sustainable norms, I am encouraged that our first quarter results were comparable to last quarter, our seasonally strong fourth quarter," said John P. McConnell, Chairman and CEO of Worthington Industries.

"Despite continued volume shortfalls in most business units, we've seen a return to some stability in pricing and margins in our largest business segment, Processed Steel Products. This is offsetting continued weakness in Pressure Cylinders and growing softness in the commercial construction market that is negatively impacting our Metal Framing business segment.

"The combination of conflicting economic signals and the, as yet, unknown ramifications of our country's national tragedy makes it difficult to forecast earnings. At this point, we expect an improved earnings trend throughout our 2002 fiscal year, including next quarter," concluded McConnell.

During the quarter the company continued to generate cash flow from operations and reduced outstanding debt by $21.5 million. And, for the 135th consecutive quarter, the company declared a quarterly dividend payable September 29, 2001.

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. Worthington employs 8,000 people and operates 59 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/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, earnings and growth, stock appreciation, plant 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.

                          WORTHINGTON INDUSTRIES, INC.
                               EARNINGS HIGHLIGHTS
                        (In Thousands, Except Per Share)

                                                   Three Months Ended
                                                        Aug. 31,
                                                 2001              2000
                                             (Unaudited)       (Unaudited)

    Net Sales:
       Processed Steel Products               $265,571          $318,113
       Metal Framing                            79,546            95,010
       Pressure Cylinders                       61,602            69,976
       Other                                     2,839             1,125
          Total Net Sales                      409,558           484,224

    Cost of Goods Sold                         349,561           420,346
          Gross Margin                          59,997            63,878

    Selling, General & Administrative Expense   37,411            41,991

    Operating Income:
       Processed Steel Products                 13,538             9,364
       Metal Framing                             6,566             9,027
       Pressure Cylinders                        1,817             5,313
       Other                                       665            (1,817)
          Total Operating Income                22,586            21,887

    Other Income (Expense):
       Misc. Income                                527                83
       Interest Expense                         (5,497)           (9,357)
       Equity in Net Income of
        Unconsolidated Affiliates                4,880             7,036
          Earnings Before Taxes                 22,496            19,649
    Income Taxes                                 8,211             7,172

          Net Earnings                         $14,285           $12,477

    Common Shares Outstanding at End of
     Period                                     85,391            85,755

    Average Common Shares Outstanding -
     Diluted                                    85,799            85,755

    Earnings Per Share - Diluted                 $0.17             $0.15

                           WORTHINGTON INDUSTRIES, INC.
                                  (In Thousands)

                                              Aug. 31,            May 31,
                                                2001               2001
                                             (Unaudited)         (Audited)

    Current Assets
      Cash and cash equivalents                   $816               $194
      Accounts receivable, net                 130,091            169,330
      Inventories                              228,286            227,506
      Other current assets                      47,092             52,689

        Total Current Assets                   406,285            449,719

    Investments in Unconsolidated
     Affiliates                                 59,314             58,638
    Goodwill                                    76,264             76,439
    Other Assets                                54,904             54,317
    Property, Plant and Equipment, net         835,323            836,749

        Total Assets                        $1,432,090         $1,475,862


    Current Liabilities
      Accounts payable                        $185,335           $207,568
      Notes payable                              9,528             13,794
      Current maturities of long-term
       debt                                      1,503              1,748
      Other current liabilities                 80,314             83,509

        Total Current Liabilities              276,680            306,619

    Other Liabilities                           70,728             69,396
    Long-Term Debt                             292,447            309,208
    Deferred Income Taxes                      142,817            140,974

    Shareholders' Equity                       649,418            649,665

        Total Liabilities and
         Shareholders' Equity               $1,432,090         $1,475,862

                          WORTHINGTON INDUSTRIES, INC.
                                 (In Thousands)

                                                   Three Months Ended
                                                        Aug. 31,
                                                 2001              2000
    Operating Activities                     (Unaudited)       (Unaudited)
      Net Earnings                             $14,285           $12,477
      Adjustments to reconcile net
       earnings to net cash provided by
       operating activities:
          Depreciation and amortization         16,988            17,843
          Other adjustments                       (327)           (1,068)
          Changes in current assets and
           liabilities                           9,493            (8,512)
          Net Cash Provided By Operating
           Activities                           40,439            20,740

    Investing Activities
      Investment in property, plant and
       equipment, net                          (12,748)          (18,165)
      Proceeds from sale of assets               7,882               221
          Net Cash Used By Investing
           Activities                           (4,866)          (17,944)

    Financing Activities
      Proceeds from (payments on) short-
       term borrowings                          (4,266)           13,323
      Proceeds from long-term debt                   -               482
      Principal payments on long-term
       debt                                    (17,219)           (1,001)
      Repurchase of common shares                    -              (737)
      Dividends paid                           (13,660)          (13,721)
      Other                                        194            (1,440)
          Net Cash Used By Financing
           Activities                          (34,951)           (3,094)

    Increase (decrease) in cash and cash
     equivalents                                   622              (298)
    Cash and cash equivalents at
     beginning of period                           194               538

    Cash and cash equivalents at end of
     period                                       $816              $240

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SOURCE Worthington Industries, Inc.

CONTACT: Cathy Mayne Lyttle, VP, Corporate Communications, +1-614-438- 3077, or e-mail,, or Allison McFerren Sanders, Director, Investor Relations, +1-614-840-3133, or e-mail,, both of Worthington Industries, Inc./

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