1/5/2012 11:59 AM ET
(RTTNews) - Metal processor Worthington Industries Inc. (WOR: News ), Thursday reported an increase in profit for the second-quarter, driven mainly by improved results from joint ventures and lower expenses. Nevertheless, results fell short of analysts' estimates hurt by deconsolidation of the company's Metal Framing and Automotive Body Panels operations.
The Columbus, Ohio-headquartered company's profit for the quarter improved to $18.5 million or $0.27 per share from $14.5 million or $0.20 per share last year. On average, seven analysts polled by Thomson Reuters estimated earnings of $0.32 per share for the quarter. Analysts' estimates usually exclude special items.
Revenues for the quarter dropped 2 percent to $570.4 million from $580.7 million a year ago, hurt by deconsolidation of the Metal Framing and Automotive Body Panels operations. Six Wall Street analysts on a consensus expected revenues of $589.39 million for the quarter.
Chief Executive John McConnell said, "The Steel Processing and Pressure Cylinders businesses nearly made up for the lost revenue from the exiting of the Metal Framing business in the year-to-year comparison." Steel Processing and Pressure Cylinders segments sales rose 18 percent and 33 percent, respectively, aided by the recent acquisitions.
If the divested operations are excluded, net sales rose 19 percent helped by acquisitions and higher average selling prices.
SG&A expenses dropped $4.1 million to $52.9 million from prior year quarter primarily due to the deconsolidation transactions, partially offset by the impact of the acquisitions.
Equity in net income of unconsolidated joint ventures rose to $21.9 million from $16.2 million last year. Worthington Armstrong Venture contributed $14.1 million of earnings in the current quarter, a 10 percent increase from last year. Additionally, new joint ventures, ClarkDietrich and ArtiFlex, contributed $2.2 million and $2.1 million to earnings, respectively.
WOR is currently trading on the NYSE at $16.94, down $0.72 or 4.08%, on a volume of 0.4 million shares.
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by RTT Staff Writer
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