Worthington Industries, Inc. (NYSE:WOR) stock rose 9.64% (As on June 29, 11:23:09 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 23. Gross margin increased $76.6 million over the prior year quarter to $244.4 million, on higher direct spreads in Steel Processing which were partially offset by the impact of lower overall volumes. Direct spreads in Steel Processing benefitted from an estimated $74.9 million favorable swing from inventory holding losses in the prior year quarter to inventory holding gains in the current quarter. Operating income was up $57.2 million over the prior year quarter to $122.6 million despite a $12.6 million headwind resulting from the combination of higher impairment and restructuring charges and incremental costs associated with the planned separation of the Company’s Steel Processing business. Total debt was $692.8 million at quarter-end, down $51.8 million from May 31, 2022, on lower short-term borrowings. The Company ended fiscal 2023 with $454.9 million of cash, up $420.5 million over the prior fiscal year end on lower working capital levels, which were down $152.8 million primarily due to lower average steel prices, and higher dividends from unconsolidated joint ventures, which were up $140.8 million over fiscal 2022.

WOR in the fourth quarter of FY 23 has reported the adjusted earnings per share of $2.74, beating the analysts’ estimates for the adjusted earnings per share of $1.90. The company had reported 19 percent fall in the adjusted revenue to $1.23 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $1.24 billion. The decrease was driven primarily by lower average selling prices in the Steel Processing business and to a lesser extent lower overall volumes.

Moreover, Steel Processing’s net sales totaled $860.1 million, down $259.7 million, from the prior year quarter, driven by lower average direct selling prices and a slight decline in overall volume. Consumer Products’ net sales totaled $181.2 million, down 3%, from the prior year quarter due to lower volume, partially offset by contributions from Level5® Tools, LLC following its acquisition on June 1, 2022. Building Products’ net sales totaled $142.2 million, down 18%, from the prior year quarter, as the impact of lower volume more than offset a favorable shift in product mix. Sustainable Energy Solutions’ net sales totaled $45.4 million, up 9.9%, from the prior year quarter, primarily due to higher average selling prices.