Worthington Industries has today reported net sales of $702.9m and net earnings of $616.7m, or $11.22 per diluted share, for its fiscal 2021 Q1 ended 31st August 2020.
Gross margin decreased $3.9m from the prior year quarter to $113.4m, as higher gross margin in Steel Processing was more than offset by the $12.8m benefit recognised in the prior year quarter related to the cancellation of a customer take-or-pay contract in Pressure Cylinders.
Operating loss for the quarter was $30.1m, $15.5m higher than the prior year quarter. In addition to the impact of lower gross margin, the higher operating loss in the quarter was driven by profit sharing, bonus and other expenses in the aggregate amount of $49.5m related to the company’s investment in Nikola, partially offset by lower impairment and restructuring chargers and lower SG&A expense.
Andy Rose, President and CEO of Worthington, said, “We are pleased with our first quarter results and with how our teams have continue to operate safely and effectively, despite the challenging environment. We saw improvement in many of our end markets during the quarter, most notably automotive in Steel Processing, along with customer products in Pressure Cylinders.”
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