Upcoming AWS Coverage on Companhia Siderurgica Nacional Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 23, 2016 / Active Wall St. announces its post-earnings coverage on Worthington Industries, Inc. (NYSE: WOR). The Company posted its second quarter fiscal 2017 financial results on December 19, 2016. The metal manufacturer posted a y-o-y gain in sales and earnings; however its earnings numbers came in below market expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Worthington Industries' competitors within the Steel & Iron space, Companhia Siderurgica Nacional (NYSE: SID), reported on November 14, 2016, its results for the third quarter of 2016. AWS will be initiating a research report on Companhia Siderurgica Nacional in the coming days.

Today, AWS is promoting its earnings coverage on WOR; touching on SID. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=WOR

http://www.activewallst.com/registration-3/?symbol=SID

Earnings Reviewed

For the three months ended November 30, 2016, Worthington reported net sales of $727.8 million, up 4% compared to net sales of $699.8 million in the prior year's corresponding quarter. The increase was attributed to higher average direct selling prices in Steel Processing, which was partially offset by lower volume in Engineered Cabs and certain Pressure Cylinders businesses.

The Company's gross margin in Q2 FY17 increased $13.6 million from the prior year's same quarter to $122.8 million on a favorable pricing spread in Steel Processing and contributions from the WSP joint venture, which was consolidated effective March 01, 2016. Operating income for the reported quarter was $43.0 million, an increase of $31.1 million from the prior year's comparable quarter.

For Q2 FY17, Worthington reported net earnings of $46.6 million, or $0.72 per diluted share. The Company's net earnings in the reported quarter included pre-tax restructuring charges totaling $3.3 million, the after-tax impact of these charges reduced earnings per diluted share by $0.03. In Q2 FY16, the Company reported net earnings of $23.4 million, or $0.36 per diluted share. Net earnings in Q2 FY16 included pre-tax impairment and restructuring charges totaling $24.5 million. The after-tax impact of these charges reduced earnings per diluted share by $0.24. The Company's earnings, adjusted for restructuring costs, came in below analysts' forecast of $0.80 per share.

Segment Results

During Q2 FY17, Worthington's Steel Processing segment reported net sales of $508.8 million up 9%, or $41.0 million, from the prior year's comparable quarter, driven by higher average direct selling prices and higher tolling volume due to the consolidation of the WSP joint venture effective March 01, 2016. The segment's operating income of $35.4 million was $8.8 million higher than Q2 FY16 due to a favorable pricing spread and contributions from the WSP joint venture.

For the reported quarter, the Company's Pressure Cylinders division generated net sales of $194.7 million, down 3%, or $6.5 million, from Q2 FY16. The decline was driven by lower volume in the oil & gas equipment and industrial products businesses, which was partially offset by higher average selling prices in consumer products due to an improved product mix. The segment's operating income in the reported quarter totaled $11.3 million compared to operating loss of $10.31 million in Q2 FY16 due to lower impairment and restructuring charges. During Q2 FY17, Worthington's Engineered Cabs net sales declined 22%, or 6.2 million, to $22.5 million from the prior year's same quarter due to declines in market demand. The operating loss of $3.4 million for the segment was $0.9 million less than the prior year's corresponding quarter due to lower SG&A expense.

Balance Sheet

As of November 30, 2016, Worthington's total debt was $577.4 million, down $2.4 million from August 31, 2016, due to lower short-term borrowings. The Company had $175.2 million of cash at quarter-end, and approximately $600 million available under its revolving credit facilities. Cash from operations was $31 million during Q2 FY17. The Company spent $15 million on capital projects, distributed $13 million in dividends. The Company did not repurchase any stock during the reported quarter.

In a separate press release on December 20, 2016, Worthington's board of directors declared a quarterly dividend of $0.20 per share. The dividend is payable on March 29, 2017, to shareholders of record March 15, 2017. This marks the 197th consecutive quarter that Worthington has paid a dividend since it became a public company in 1968.

Stock Performance

At the closing bell, on Thursday, December 22, 2016, Worthington Industries' stock declined 3.21%, ending the trading session at $49.75. A total volume of 1.03 million shares were traded at the end of the day, which was higher than the 3-month average volume of 699.06 thousand shares. In the last three month and previous twelve months, shares of the company have surged 13.04% and 62.97%, respectively. Moreover, the stock skyrocketed 68.22% since the start of the year. The company's shares are trading at a PE ratio of 18.06 and have a dividend yield of 0.80%.

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SOURCE: Active Wall Street