Healthy end market demand and higher average selling prices in its steel processing segment are driving sales growth for Worthington Industries. The company is reporting a record quarter for its fiscal 2022 second quarter ended 30 November.
Columbus, Ohio-based Worthington expects continuing strength in demand moving forward, Kallanish learns from its quarterly earnings report.
Steel processing sales doubled from last year’s quarter to $937.8 million in Q2 as the segment benefited from inventory holding gains. Current quarter inventory holding gains are estimated at $42.1m. The company operates approximately 30 steel processing locations in the US, Mexico, and Canada.
Company-wide net sales were up 69% year-on-year to $1.2 billion in fiscal Q2, and the company says the increase is primarily due to higher selling prices in steel processing. Net earnings reached $110.3m in the quarter.
Worthington notes its optimism regarding its recent acquisition of Tempel Steel, which it says makes it “a global leader in the electrical steel market complementing our existing sustainable mobility offerings in lightweighting and hydrogen and positioning us to more widely serve rapidly growing global markets for electric vehicles and electricity infrastructure.”
Laura Miller USA