Worthington Industries, Inc. (NYSE: WOR) stock lost over 2.8% in the pre-market session (Source: Google finance) as their fourth quarter of FY 19 performance was hurt by lower direct shipments in Steel Processing and lower overall volume in Pressure Cylinders, partially offset by higher average selling prices.
WOR in the fourth quarter of FY 19 has reported the adjusted earnings per share of 77 cents, which is in line with the analysts’ estimates for the adjusted earnings per share of 77 cents, as per Zacks Investment Research. The company had reported 8 percent fall in the adjusted revenue to $938.8 million in the fourth quarter of FY 19, missing the analysts’ estimates for revenue of $986.4 million.
Moreover, Steel Processing’s net sales totaled $584.4 million, down 10%, or $68.4 million, from the comparable prior year quarter, driven by lower direct volume, partially offset by higher direct average selling prices. Operating income of $14.9 million was $32.7 million less than the prior year quarter on the combined impact of lower direct volumes and a compressed pricing spread driven by current quarter inventory holding losses versus prior year holding gains. Pressure Cylinders’ net sales totaled $322.3 million, down 5%, or $17.7 million, from the comparable prior year quarter due to the impact of divestitures. Operating income of $21.4 million was $50.7 million higher than the prior year quarter on lower impairment and restructuring charges. Engineered Cabs’ net sales totaled $32.1 million, up $4.9 million, or 18%, over the prior year quarter on higher volume and average selling prices. The operating loss of $3.2 million was $2.1 million less than the prior year quarter on higher net sales and gross margin.
Additionally, WOR has declared a quarterly dividend of $0.24 per share, an increase of $0.01 per share from the prior quarter. The dividend is payable on Sept. 27, 2019, to shareholders of record Sept. 13, 2019. During the fourth quarter of fiscal 2019, the Company repurchased a total of 1,000,000 common shares for $39.1 million at an average price of $39.08, bringing the total number of shares repurchased during fiscal 2019 to 4,100,000 for $168.1 million at an average price of $40.99
The company has also announced the appointment of David P. Blom to Worthington’s board of directors increasing the board to 11 members.
Meanwhile, on May 1, 2019, the Company acquired substantially all of the assets of Magna Industries, Inc., a Cleveland-based manufacturer of MagTorch hand torches and accessories and Superior Tool plumbing accessories. The total purchase price was $13.5 million which includes an earn-out provision tied to future performance.