Worthington Industries Registers 69% Sales Growth In Q2

Worthington Industries, Inc. WOR reported second-quarter FY22 net sales growth of 68.6% year-over-year to $1.23 billion, missing the consensus of $1.25 billion.

• The increase in sales reflected higher average direct selling prices in Steel Processing.
• Sales by segments: Steel Processing $937.8 million (+100% Y/Y), Consumer Products $140.8 million (+20% Y/Y), Building Products $121.1 million (+29% Y/Y) and Sustainable Energy Solutions $33.1 million (-3% Y/Y).
• The operating income was $90.5 million, an increase of 142% Y/Y. The operating margin expanded by 222 bps to 7.3% for the quarter.
• Adjusted EPS improved to $2.12 from $0.95 in 2Q21, beating the consensus of $1.72.
• The gross margin contracted by 356 bps to 15%.
• Net cash used by operating activities was $119.1 million, compared to cash provided of $107.43 million a year ago.
• The company completed the acquisition of Tempel Steel Company for ~$255 million-plus the assumption of certain long-term liabilities.
• Worthington Industries held $225.2 million in cash and equivalents as of November 30, 2021. Total debt was $702.2 million.
• Price Action: WOR shares are trading higher by 2.74% at $52.46 on the last check Thursday.