Worthington -11% as FQ2 earnings miss estimates

• Worthington Industries (WOR -11.2%) plunges to 52-week lows after reporting higher FQ2 earnings and sales but misses expectations due to higher manufacturing costs and a product miss.
• Gross margins declined $3M Y/Y as higher manufacturing expenses across all business segments combined with the unfavorable impact of inventory holding losses in steel processing more than offset the impact of higher volume.
• Oil and gas equipment and engineered cab operations suffered elevated manufacturing costs, and the oil and gas equipment business facility had a product miss on the commercial side, WOR says, adding that they are "isolated issues."
• In its Q2 earnings conference call, WOR said it is not seeing any demand decrease in oil and gas equipment due to declining oil prices.