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Worthington Industries 3Q Profit Tumbles 92 Pct

The Associated Press

COLUMBUS, Ohio (AP) — Metal-processing company Worthington Industries Inc. on Wednesday said its third-quarter profit plunged 92 percent, due to a $16.3 million restructuring charge and a sharp decline in sales.

For the three months ended Feb. 28, earnings fell to $1.6 million, or 2 cents per share, compared with $18.3 million, or 23 cents per share, a year earlier.

The results include a restructuring charge, which was partially offset by an $8.3 million pretax gain on the sale of the company's interest in the Aegis Metal Framing joint venture to MiTek Industries Inc., a unit of Berkshire Hathaway Inc. The charges cut profits by 4 cents per share.

Analysts polled by Thomson Reuters expected an average loss of 1 cent per share. Analysts typically exclude one-time items.

Revenue slid 31 percent to $501.1 million, down from $725.7 million. The company said sales declined across all segments as the global economy slowed and construction activity scaled back. For the steel-processing segment, which primarily serves the automotive and construction-related industries, average selling prices fell throughout the quarter. Analysts forecast revenue of $597.1 million, on average.

Worthington said it has been cutting costs for the past 18 months, including permanently and temporarily closing certain plants and reducing its work force.

The Columbus, Ohio-based company declared a quarterly cash dividend of 17 cents per share payable March 29, to shareholders March 15.

Shares of Worthington fell 92 cents, or 10.3 percent, to $7.82 in Wednesday morning trading.