Worthington 1Q profit down but returns to black

Worthington posts 4Q loss as sales plunge

Worthington Industries Inc.’s fiscal first-quarter earnings were a far cry from the record profit the company enjoyed a year earlier, but the results were a breath of fresh air after a hefty loss in the prior quarter.

The Columbus-based steel processor told investors after the markets closed Tuesday that it earned $6.7 million, or 8 cents a share, in the three months ended Aug. 31, down 90 percent from $68.6 million, or 87 cents a share, a year earlier.

Revenue in the quarter fell more than half to $417.5 million from $913.2 million.

Last year’s first quarter marked record sales and earnings for Worthington Industries (NYSE:WOR), one of Central Ohio’s 10 largest publicly held companies. Since then, the corporation lost tens of millions of dollars and cut more than 1,000 jobs as it closed plants and trimmed payroll to adjust to a drastic slowdown in demand for steel. A difficult fiscal year with more than $100 million combined in red ink culminated with a loss of nearly $14 million in the fourth quarter ended May 31.

CEO John McConnell said the company’s steel processing and metal framing businesses continued to suffer last quarter, but demand from automobile makers tied to the government’s Cash for Clunkers program gave what he called a “temporary lift” to its steel processing unit.

The company said it is preparing for a seasonal drop in demand that begins in November before leveling out in December.

“We are optimistic that volumes will begin to trend higher next year, but we will watch the opening months of 2010 closely,” McConnell said in a release. “They should provide foreshadowing for the remainder of the year.”

Worthington Industries employs about 6,400 workers worldwide. The company lost $108.2 million on $2.63 billion in revenue in its last fiscal year.