Mission Viejo, CA - Within Worthington Industries latest results announcement Dietrich Metal Framing reported a $7.562 million loss on sales revenue of $182.789 million during their latest Dec'07-Feb'08 quarter which is an improvement from the $16 million operating loss the previous quarter (12/20/07 GypsumToday.com article titled "Dietrich $16M Loss May Reflect Metal Framing Low Point). Not including a $2.5 million pre-tax restructuring charges related to announced plant closures and a $1.5 million pre-tax pension charge Dietrich's EBIT/Sales performance for the most recent quarter comes to a negative 1.9%.
Dietrich Metal Framing returned to operating profitability for the month of February, excluding the impact of restructuring charges and pension charge.
Worthington's very successful joint venture with Armstrong, WAVE (i.e. ceiling tile grid) had record earnings during the December '07 - February '08 quarter and was the main contributor to the quarter's $15.7 million equity income from nine unconsolidated joint ventures.
"Our performance this quarter showed significant improvement," said Chairman and CEO, John McConnell. "Pressure Cylinders and our WAVE joint venture, which posted a record third quarter, continued producing excellent results. Metal Framing made great strides as efforts to reduce cost and improve customer service are beginning to net results." McConnell added. "The entire team has pulled together to help this segment successfully implement its turnaround plan."
Dietrich's net sales increased 5% in the comparable quarter of fiscal 2007, due to higher volumes (up 5%). While average selling prices were comparable to the year ago period, they increased from what had been a declining trend since then and were up 4% from the second quarter. Selling prices are steadily rising in conjunction with rapidly rising steel raw material costs. Price increases were implemented in both January and February and additional monthly increases have been announced through May. NOTE: See 1/9/08 GypsumToday.com "Industry News" article titled "Steel Framing Costs Expected to Rise First Half of '08".
Dietrich's operating loss narrowed as the spread between selling prices and material costs improved significantly compared to the depressed levels of a year ago. Much of the improvement was a result of lower material costs associated with a more favorable mix of inventory. The remaining plant closures are expected to be substantially complete by fiscal year end. Measurable cost savings related to these closures, estimated at $9 million annually, are not expected until fiscal 2009.
Full details of Worthington Industries latest results announcement and webcast can be seen at www.worthingtonindustries.com
