Seeking Alpha

Worthington hits all-time highs even as profit falls on rebranding plan

  • Worthington Industries (WOR +12.2%) trades at all-time highs following better than expected FQ2 results, even as profit fell 28% through sales and acquisitions relating to its costly rebranding plan.
  • As total revenue rose 24% to nearly $770M, revenue from the steel processing business, WOR's biggest top-line contributor, rose 43% to $492M, on the consolidation of its TWB welded-blank joint venture and increased sales in the automotive, construction and agriculture markets.
  • WOR plans to discontinue the use of most non-Worthington trade names, which contributed a $30.7M writeoff charge in the quarter; combined with a $2.5M gain from an insurance claim, the items would increase earnings by $0.25/share.

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