Manufacturing Company Worthington Beats On Q2, Its Last Quarter As Worthington Industries

Worthington Enterprises Inc WOR, formerly Worthington Industries, Inc., reported a second-quarter FY24 sales decline of 7.5% year-on-year to $1.086 billion, beating the analyst consensus estimate of $1.035 billion.

Worthington recently completed the previously announced separation of its Steel Processing business, Worthington Steel, Inc. WS, into a standalone, publicly traded company.

These quarterly results include both Worthington Enterprises and Worthington Steel. 

The revenue decrease was primarily attributed to Steel Processing due to lower average selling prices, which were partially offset by higher volumes.

Steel Processing's net sales for the second quarter totaled $788.7 million, down $53.3 million compared to the prior-year quarter.

Consumer Products decreased 3.9% to $147.7 million, Building Products dropped 13% to $123 million, and Sustainable Energy Solutions plunged 28% to $27.5 million.

Gross profit increased 17% to $123.7 million with a margin of 11.4%.

Operating loss for the quarter narrowed to $(5.9) million from $(7) million.

Adjusted EPS of $0.78 beat the consensus estimate of $0.71.

Worthington held $430.9 million in cash and equivalents as of November 30, 2023.

Total debt was $623.8 million at the end of Q2. On December 19, the Board of Directors declared a quarterly dividend of $0.16 per share payable on March 29, 2024, to shareholders of record on March 15, 2024.

Beginning in the third quarter of fiscal 2024, historical results will be restated to reflect the operations of the company's former Steel Processing segment as a discontinued operation in periods before the December 1, 2023, separation date.

Price Action: WOR shares closed higher by 3.47% at $58.51 on Tuesday.