Bowdeya Tweh, Times of Northwest Indiana
bowdeya.tweh@nwi.com
Metal processing company Worthington Industries reported Wednesday a loss of $13.7 million, or 17 cents per share, in the fourth quarter ending May 31 as the economic downturn caused sales declines and accelerated corporate restructuring.
The company also had a loss of $108.2 million, or $1.37 per share, for the 12 months ending May 31.
Revenue for Columbus, Ohio-based Worthington Industries was $471.6 million, down 5.9 percent from the third quarter ending Feb. 28, and down 45.7 percent from the fourth quarter of the 2008 fiscal year.
Worthington owns a steel pickling, slitting, rolling and cutting facility in Porter and a steel processing and metal framing facility in Hammond.
The company had to write down $6.3 million on pretax inventory and $6 million in pretax restructuring charges in the fourth quarter.
"The last nine months of our fiscal year were very difficult, as the global economy plunged into deep recession," said Chairman and CEO John P. McConnell in a Securities and Exchange Commission filing.
McConnell said the business was fortunate to begin corporate restructuring before the recession began and made changes to its steel processing and metal framing businesses to meet declines in market volume.
Worthington Industries CFO Andy Rose said the company has been effective in managing its credit risk related to the automotive industry restructuring and decline in commercial construction.
Revenue for the steel processing and metal framing segments were down 57 percent and 51 percent in the fourth quarter. These two segments made up 61 percent of the company's revenue for the quarter.
The company anticipates growth in its pressure cylinder business and its joint venture operations, the filing said.
In the 2009 fiscal year, the company cut more than 1,200, or 20 percent, of its employees in core businesses and closed a steel processing facility, two metal framing facilities and a joint venture, sold its interest in three joint ventures and idled operations at two metal framing facilities.
In the current quarter, Worthington reduced salaries between 3 and 20 percent, and the chief executive took a 25 percent pay cut.