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The Columbus-based steel-processing company used higher prices to post net income of $69 million in its first quarter, which ended Aug. 31. That's up more than three times from the same quarter last year. Sales were $913 million, up 20 percent.
"We were strong across the board," said Chief Executive John P. McConnell at the company's annual shareholders' meeting yesterday.
Net earnings per share were 86 cents, which far exceeded analysts' expectations.
Charles Bradford of Bradford-Soleil Research had one of the highest earnings-per-share estimates at 62 cents, and he said he was "pleasantly surprised" to see the actual results were so much better.
But the continuing economic slowdown and high materials costs mean the outlook is less rosy.
"Right now, Worthington's customer base is very weak," Bradford said. "Who do they serve? They serve construction and automotive. That is not a good part of the economy."
McConnell said the company is scaling back its inventory in anticipation of lower orders.
The company's steel-processing segment had $460 million in sales, up 29 percent from the same quarter last year. The metal-framing segment had $233 million in sales, up 18 percent.
The gains in both segments were largely because of price increases. The average price for steel processing was up 40 percent, and the average price for metal framing was up 35 percent.
A company spokeswoman said the price increases were in line with increases in steel costs. However, because Worthington bought much of its steel at lower prices, it was able to get a short-term gain before it begins paying higher prices for materials.
This is the second consecutive quarter in which Worthington had strong gains despite the economic slowdown.
McConnell said some of the credit should go to the company's "transformation plan," an ongoing attempt to improve manufacturing processes at its plants.
The annual shareholders' meeting lasted less than an hour.
Worthington's stock price closed at $17.11 yesterday, up 53 cents, or 3.2 percent.
dgearino@dispatch.com
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