Worthington Industries reported net sales of $703mn Q1 FY 2021 ended August 31, 2020, down by 17.9pc against the same quarter last year.
The company’s steel processing division’s net sales declined by 18pc or $92.4mn to $431mn in Q1 2021 against the same quarter last year. The pressure cylinders division sales decreased by 11pc or $33.5mn to $270.9mn during the same period under comparison.
The declines were attributed to lower sales volumes and lower average selling prices in Worthington’s steel-segment. Andy Rose, president and chief executive officer of the company stated that demand across most markets, except oil and gas, remains solid. He noted, however, that the current economy makes a forecast for FY 2021 uncertain.
The company’s gross margin declined by $3.9mn in Q1 2021 compared with $113.4mn in the same quarter a year ago. Operating loss was reported at $30.1mn during the quarter, a deeper loss compared to a loss of $14.6mn in the same quarter last fiscal. Despite the operating loss, Worthington reported net earnings of $616.7mn in the latest quarter compared to a loss of $4.8mn in Q1 FY 2020 driven by a gain on an investment in Nikola, an electric-truck company.