Worthington Expects Weaker Q3 Due To Steel Price Decline - Quick Facts

(RTTNews) - Worthington Industries, Inc. (WOR) announced that it currently expects third quarter earnings to be significantly below last year's level, due to steel price decline, combined with softening demand in a few key end-markets, including oil and gas and agriculture. The company expects fourth quarter results also to be adversely affected.

Additionally, continued higher than normal operating costs in certain Pressure Cylinders and Engineered Cabs operations will also be factors.

The company noted that price of steel has dropped over $100 a ton since mid-December and the amount and speed of the decline was not anticipated. When steel prices fall, the company typically has higher-priced base inventory flowing through cost of goods sold, while selling prices compress to market levels, reducing margins and earnings.

The company specified that it will be difficult to achieve year-over-year EPS growth in fiscal 2015 in light of these headwinds.