Worthington Industries, Inc. (NYSE: WOR) stock fell 3.71% on 17th December, 2020 (Source: Google finance) after the company missed the earnings estimates and turned to loss from profit in the second quarter of FY 21. In October 2020, the Company had sold its cryogenic trailer and hydrogen trailer business, that includes the Theodore, Ala. manufacturing site, to Chart Industries, Inc. and its cryo-science and microbulk business to IC Biomedical US, LLC. The combined sale proceeds from the two transactions were $21.2 million, which resulted in a pre-tax loss of $7.1 million within restructuring and other expense. Meanwhile, equity income from unconsolidated joint ventures had fallen $21.7 million from the prior year quarter, which included a $23.1 million pre-tax gain related to the sale of WAVE’s international operations. However, excluding the gain in the prior year quarter, the equity income has risen $1.4 million mainly due to higher contributions from Serviacero. The Company received cash distributions of $30.2 million from its unconsolidated joint ventures during the second quarter.
WOR in the second quarter of FY 21 has reported the adjusted loss per share of $1.40, missing the analysts’ estimates for the adjusted earnings per share of 68 cents. The company had reported 12 percent fall in the adjusted revenue to $731.1 million in the second quarter of FY 21, beating the analysts’ estimates for revenue of $688.30 million. This decline in net sales was driven mainly by lower average selling prices in Steel Processing, lower volumes in the oil and gas equipment business in Pressure Cylinders, and the divestiture of the engineered cabs business in the prior year. Gross margin increased $14.9 million over the prior year quarter to $135.5 million on the back of lower conversion costs and improved spreads in Steel Processing were partially offset by a decline in the oil and gas equipment business in Pressure Cylinders. Operating income for the second quarter was $37.4 million, which represents an increase of $5.2 million over the prior year quarter. The effect of higher gross margin and lower SG&A expense was partially offset by higher combined impairment and restructuring charges, and the profit sharing and bonus expenses related to the Company’s investment in Nikola.
Additionally, during the second quarter of fiscal 2021, the company had repurchased a total of 857,980 of its common shares for $38.6 million, at an average purchase price of $44.95.