COLUMBUS, Ohio--(BUSINESS WIRE)--Dec. 3, 2008--Worthington Industries, Inc. (NYSE:WOR) announced that end market
weakness and the speed and severity of the recent decline in steel
pricing has left it with inventory in excess of reduced demand while
market values for that inventory have plummeted. As a result, it will be
writing down the value of its inventory by approximately $100 million
(pre-tax) as of the end of its second quarter, which ended November 30,
2008.
"We have been reducing our inventories and generating cash, but the
current global economic crisis has dramatically slowed demand in our
markets, particularly automotive and construction, making this action
necessary," said John P. McConnell, Chairman and CEO. "We have been
focused on reducing costs and transforming our business model for
several quarters now and will become even more aggressive in response to
current conditions. We are further broadening our cost cutting efforts,
including closing facilities and reducing headcount and hours;
accelerating our Transformation initiatives; selling non-core assets;
and taking steps to reduce cash requirements and maintain liquidity. We
are taking aggressive actions now, rather than later, which are intended
to position us to effectively compete and succeed in the current
economic environment," concluded McConnell.
After reviewing current and expected cost reduction efforts, the current
rate of cash generation and other relevant factors, effective December
3, 2008, the board of directors declared a regular quarterly dividend of
$0.17 per share, payable on December 29, 2008, to shareholders of record
December 15, 2008. Management and the board believe that the dividend
plays a significant role in delivering on the Worthington philosophy of
returning money to its shareholders, and the company is proud that this
payment marks the 164th consecutive quarter that Worthington
has paid a dividend since it became a public company in 1968. During a
period of unprecedented economic uncertainty, it is important for
investors to remember that the board of directors evaluates all relevant
factors each quarter and makes a decision regarding the sustainability
of the current dividend. Ultimately, while continuing the regular
dividend is the goal, it should not be construed as a commitment.
Worthington Industries is a leading diversified metal processing company
with annual sales of approximately $3 billion. The Columbus, Ohio, based
company is North America's premier value-added steel processor and a
leader in manufactured metal products such as metal framing, metal
ceiling grid systems, pressure cylinders, automotive past model service
stampings and laser welded blanks. The company employs approximately
8,000 people and operates 68 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 or expected demand,
performance, sales, operating results, earnings or cash generation;
pricing and pricing trends for raw materials and finished goods, and the
impact of pricing changes; anticipated capital expenditures and asset
sales; projected timing, results, costs, charges and expenditures
related to facility dispositions, shutdowns and consolidations; expected
inventory write-downs, inventory values or inventory reductions;
expectations for company and customer inventories, jobs, orders and
overall demand; expectations for the economy and markets; timing and
expected benefits from Transformation plans, plant closings, workforce
reductions, cost reduction efforts and other new initiatives;
expectations for improvements in efficiencies; expectations for
improving margins and increasing shareholder value; and other
non-historical matters constitute "forward-looking statements" within
the meaning of the Act. Because they are based on beliefs, estimates and
assumptions, forward-looking statements are inherently subject to risks
and uncertainties that could cause actual results to differ materially
from those projected. Any number of factors could affect actual results,
including, without limitation, product demand and pricing; changes in
product mix, product substitution and market acceptance of the company's
products; fluctuations in pricing, quality or availability of raw
materials (particularly steel), supplies, transportation,
utilities and other items required by operations; effects of facility
closures and the consolidation of operations; the effect of
consolidation and other changes within the steel, automotive,
construction and related industries; failure to maintain appropriate
levels of inventories; the ability to realize targeted expense
reductions such as head count reductions, facility closures and other
expense reductions; the ability to realize other cost savings and
operational efficiencies and improvements on a timely basis; the overall
success of, and the ability to integrate, newly-acquired businesses and
achieve synergies therefrom; capacity levels and efficiencies within
facilities and within the industry as a whole; financial difficulties
(including bankruptcy filings) of customers, suppliers, joint venture
partners and others with whom the company does business; the effect of
national, regional and worldwide economic conditions generally and
within major product markets, including a prolonged or substantial
economic downturn; the effect of disruption in business of suppliers,
customers, facilities and shipping operations due to adverse weather,
casualty events, equipment breakdowns, acts of war or terrorist
activities or other causes; changes in customer inventories, spending
patterns, product choices, and supplier choices; risks associated with
doing business internationally, including economic, political and
social instability, and foreign currency exposure; the ability to
improve and maintain processes and business practices to keep pace with
the economic, competitive and technological environment; adverse claims
experience with respect to workers compensation, product recalls or
liability, casualty events or other matters; deviation of actual results
from estimates and/or assumptions used by the company in the application
of its significant accounting policies; level of imports and import
prices in the company's markets; the impact of judicial rulings and
governmental regulations, both in the United States and abroad; and
other risks described from time to time in the company's filings with
the United States Securities and Exchange Commission.
CONTACT: Worthington Industries, Inc.
Media Contact
Cathy M. Lyttle, 614-438-3077
VP, Corporate Communications
E-mail: cmlyttle@WorthingtonIndustries.com
or
Investor Contact
Allison M. Sanders, 614-840-3133
Director, Investor Relations
E-mail: asanders@WorthingtonIndustries.com
or
www.WorthingtonIndustries.com
Source: Worthington Industries, Inc.