Worthington Industries (WOR) reported a 14% dip in earnings for the second quarter due to rising input costs and lower spreads in its Steel Processing business as well as lower profit sharing and bonus accruals. The results of the metals manufacturing company missed analysts’ expectations. Following this, the stock inched down over 10% in the premarket session.
Net income for the quarter dropped 13.7% to $34 million and earnings fell 8.1% to $0.57 per share. The results included net pre-tax restructuring charges totaling $0.4 million, which lowered earnings per share by $0.01.
However, net sales grew 10% to $958.2 million, driven by higher average direct selling prices in Steel Processing. This was partially offset by lower net sales in the consumer products business in Pressure Cylinders.
For the second quarter, Steel Processing’s net sales increased 18% driven primarily by higher average direct selling prices. Engineered Cabs’ net sales decreased 6% on lower volume.
Pressure Cylinders’ net sales declined 2% as consumer products in the prior year quarter benefited from hurricane-driven demand. Volume decreases in the industrial products and oil & gas equipment businesses were largely offset by favorable pricing and mix.
Looking ahead, the company is making good progress on recovering margins and anticipates continued solid end market demand. Worthington said its teams are executing strategies focused on accelerating its growth and delivering innovative solutions to its customers.
Recently in mid-August, the company has appointed Andy Rose as President. Rose continued as Chief Financial Officer on an interim basis until Nov. 1, 2018, when the company announced that Joseph Hayek was named Vice President and CFO.
Shares of Worthington Industries ended Monday’s regular session down 1.29% at $36.66 on the NYSE. The stock has fallen over 16% in the year so far and over 18% in the past three months.