http://www.morningstar.com/earnings/50053850-worthington-industries-inc-wor-q3-2013.aspx

Worthington Industries Inc WOR
Q3 2013 Earnings Call Transcript

Transcript Call Date 03/21/2013

Operator: Good afternoon and welcome to the Worthington Industries' Third Quarter 2013 Earnings Call. All participants will be able to listen-only until the question-and-answer session of the call. This conference is being recorded at the request of Worthington Industries. If anyone objects, you may disconnect at this time.

I'd like to introduce Ms. Cathy Lyttle, Vice President of Corporate Communications and Investor Relations. Ms. Lyttle, you may begin.

Cathy M. Lyttle - VP of Corporate Communications and IR: Thank you, Rochelle. Good afternoon and welcome to our third quarter earnings conference call. Certain statements made on this call are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties and could cause actual results to differ from those suggested.

Please refer to our third quarter earnings release issued this morning. For more detail on those factors that could cause actual results to differ materially. For anyone interested in listening to this call again, a replay will be made available on our Company website, worthingtonindustries.com.

On the call today are John McConnell, Chairman and Chief Executive Officer; Mark Russell, President and Chief Operating Officer; and Andy Rose, Vice President and Chief Financial Officer.

John will get it started.

John P. McConnell - Chairman and CEO: Well, thank you Cathy and good afternoon everyone. We appreciate you joining us today. Again in this quarter we're very happy with performance of our business and we are very proud of our employees who continue to drive Worthington Industries to new heights. Andy and Mark are both prepared to walk through the quarter in more detail. We'll get start with Andy.

B. Andrew Rose - VP and CFO: Thank you, John and good afternoon everyone. The Company's performance in the third quarter of fiscal 2013 was quite good once again led by strong earnings growth in Cylinders, improved margins in our steel company and higher earnings from our joint ventures. Quarterly earnings per share of $0.52 were up $0.15 from the prior year or 41% and represents a record for Worthington's fiscal third quarter, something we are all very proud off.

Inventory holding losses were nominal during the quarter as they were in the prior year period. Volume growth was mixed in the third quarter. Cylinder volumes were essentially flat year-over-year, but this metric is becoming less and less meaningful as we add much larger and lower volume tanks to our portfolio in energy and alternative fuels.

Steel Processing direct volumes were up 3% while toll volumes declined 26%. Excluding the planned wind down of volumes from the MISA Metals acquisition, steel direct volumes were up 6% while toll volumes declined 22%, mostly attributable to our Spartan joint venture. Spartan volumes are down over the last year due to our partner moving business to their in-house galvanizing facility as expected. Volumes have stabilized and the business remained solidly profitable.

Engineered Cabs business continues to be soft due to production declines at its largest customer. The business generated $4.7 million of EBITDA during the quarter before including corporate allocations and the fiscal year, and for the fiscal year is expected to be only 15% to 20% below the run rate when we acquired the business in December 2011.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.