Worthington Posts Q1 Loss On Charges; Sales Down 13% - Quick Facts

(RTTNews) - Worthington Industries, Inc. (WOR) reported a net loss of $4.8 million, or $0.09 per share, for its fiscal 2020 first quarter. The company's results for the quarter were negatively impacted by pre-tax impairment and restructuring charges, which had an after-tax impact of $0.65. Results were also negatively impacted by a charge related to the early extinguishment of debt and estimated inventory holding losses in Steel Processing, which reduced earnings per share by an additional $0.06 and $0.11, respectively. The impact of these items was partially offset by a pre-tax benefit of $0.17 per share, related to the early termination of a customer take-or-pay contract in Pressure Cylinders.

Analysts polled by Thomson Reuters expected the company to report profit per share of $0.71, for the quarter. Analysts' estimates typically exclude special items.

First-quarter net sales were $855.9 million, down 13% from a year ago. The company said the decline in sales was primarily driven by lower direct volume and lower average direct selling prices in Steel Processing due to a decline in the market price of steel. Analysts expected revenue of $884.95 million for the quarter.