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Worthington Industries Reports Second Quarter and Six Month Results Second Quarter EPS up 63%; Six Months EPS up 30


COLUMBUS, Ohio, Dec. 19 /PRNewswire/ -- Worthington Industries, Inc. (NYSE: WOR) today reported results for the three and six month periods ended November 30, 2001. For the quarter, net income increased 65% to $11.3 million compared to $6.9 million for the same period a year ago, and diluted earnings per share increased 63% to $0.13 compared to $0.08 last year. Sales were $410.4 million, a decrease of 10% from $457.4 million last year.

For the six-month period, earnings increased 32% from the prior year to $25.6 million from $19.4 million, and diluted earnings per share increased 30% to $0.30 from $0.23. Sales decreased 13% to $819.9 million from $941.6 million.

While these earnings compare favorably to the year ago time period, they reflect a recessionary environment that continues to depress performance in all of the business segments and joint ventures of Worthington Industries.

Success in new customer development efforts and improvement in margins helped to boost profitability in the company's largest business segment, Processed Steel Products. Aside from that business segment, results were down from last year in Metal Framing and Pressure Cylinders and in unconsolidated joint venture income. Volume declines were the primary cause of the shortfall except in Metal Framing, which continues to expand market share despite slowing business conditions and highly competitive pricing.

Controlled expenses, especially financing costs, helped offset increased bad debt expense resulting from the deteriorating financial condition of some of the customer base.

"We continue to instill more discipline throughout the company as we work to streamline our business platform to generate maximum earnings," said John P. McConnell, Chairman and CEO of Worthington Industries. "This discipline is apparent in our expense controls, balance sheet strength, improved working capital management and capital investment decisions which have all contributed to profitability in today's very difficult environment. While profitability is an accomplishment, current results are well below what we are capable of producing once the economy recovers and our assets are utilized most efficiently," concluded McConnell.

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 7,500 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   Six Months Ended
                                            Nov. 30,            Nov. 30,
                                         2001      2000      2001      2000
                                          (Unaudited)         (Unaudited)

    Net Sales:
       Processed Steel Products        $275,535  $306,578  $541,106  $624,691
       Metal Framing                     75,691    89,215   155,237   184,225
       Pressure Cylinders                56,063    59,815   117,665   129,791
       Other                              3,090     1,761     5,929     2,886
          Total Net Sales               410,379   457,369   819,937   941,593

    Cost of Goods Sold                  349,082   400,748   698,643   821,094
          Gross Margin                   61,297    56,621   121,294   120,499

    Selling, General & Administrative
      Expense                            41,203    41,975    78,614    83,966

    Operating Income:
       Processed Steel Products          14,903     5,029    28,441    14,393
       Metal Framing                      3,261     7,414     9,827    16,441
       Pressure Cylinders                 2,521     3,172     4,338     8,485
       Other                               (591)     (969)       74    (2,786)
          Total Operating Income         20,094    14,646    42,680    36,533

    Other Income (Expense):
       Miscellaneous Expense             (1,655)     (430)   (1,128)     (347)
       Interest Expense                  (5,688)   (9,550)  (11,185)  (18,907)
       Equity in Net Income of
        Unconsolidated Affiliates         5,081     6,168     9,961    13,204
          Earnings Before Taxes          17,832    10,834    40,328    30,483
    Income Taxes                          6,509     3,954    14,720    11,126

          Net Earnings                  $11,323    $6,880   $25,608   $19,357

    Common Shares Outstanding at End
     of Period                           85,392    85,755    85,392    85,755

    Average Common Shares Outstanding
     - Diluted                           85,775    85,755    85,787    85,755

    Earnings Per Share - Diluted          $0.13     $0.08     $0.30     $0.23

                           WORTHINGTON INDUSTRIES, INC.
                                  (In Thousands)

                                                   Nov. 30,           May 31,
                                                     2001              2001
                                                 (Unaudited)         (Audited)

    Current Assets
      Cash and cash equivalents                       $819               $194
      Accounts receivable, net                     125,946            169,330
      Inventories                                  229,173            227,506
      Other current assets                          45,870             52,689

        Total Current Assets                       401,808            449,719

    Investments in Unconsolidated Affiliates        63,991             58,638
    Goodwill                                        76,023             76,439
    Other Assets                                    56,015             54,317
    Property, Plant and Equipment, net             829,514            836,749

        Total Assets                            $1,427,351         $1,475,862


    Current Liabilities
      Accounts payable                            $189,949           $207,568
      Notes payable                                  5,433             13,794
      Current maturities of long-term debt           1,811              1,748
      Other current liabilities                     78,792             83,509

        Total Current Liabilities                  275,985            306,619

    Other Liabilities                               69,448             69,396
    Long-Term Debt                                 291,829            309,208
    Deferred Income Taxes                          144,259            140,974

    Shareholders' Equity                           645,830            649,665

        Total Liabilities and
         Shareholders' Equity                   $1,427,351         $1,475,862

                           WORTHINGTON INDUSTRIES, INC.
                                  (In Thousands)

                                                        Six Months Ended
                                                             Nov. 30,
                                                      2001             2000
                                                  (Unaudited)       Unaudited)
    Operating Activities
      Net Earnings                                 $25,608            $19,357
      Adjustments to reconcile net earnings to
        net cash provided by operating
          Depreciation and amortization             34,406             35,848
          Other adjustments                         (4,484)            (6,563)
          Changes in current assets and
           liabilities                              13,562            120,001
          Net Cash Provided By Operating
           Activities                               69,092            168,643

    Investing Activities
      Investment in property, plant and
       equipment, net                              (25,147)           (32,697)
      Proceeds from sale of assets                   9,651                719
          Net Cash Used By Investing Activities    (15,496)           (31,978)

    Financing Activities
      Payments on short-term borrowings             (8,361)          (103,502)
      Proceeds from long-term debt                       -                482
      Principal payments on long-term debt         (17,488)            (1,228)
      Repurchase of common shares                        -               (737)
      Dividends paid                               (27,323)           (27,441)
      Other                                            201             (3,841)
          Net Cash Used By Financing Activities    (52,971)          (136,267)

    Increase in cash and cash equivalents              625                398
    Cash and cash equivalents at
     beginning of period                               194                538

    Cash and cash equivalents at end of period        $819               $936


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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