Steel building manufacturers
Worthington Industries said earnings more than tripled in the first quarter but the metal processor warned investors not to expect a repeat performance in the near-term since market conditions are likely to weigh on the construction and automotive industries, which could soften demand for the company's steel and metal products.
'Unfortunately, the record quarterly sales and net earnings are not sustainable given current market conditions, particularly in the steel processing and metal framing business segments,' said Chairman John McConnell, who credited both the favorable pricing environment and the company's successful cost reduction plan as contributing to its blowout quarter.
Shares of Worthington Industries (nyse: WOR - news - people ) gained 53 cents, or 3.2%, closing Wednesday's trading session at $17.11. The company said it would continue efforts to improve margins, operations and customer development in addition to evaluating restructuring possibilities. Some of Worthington's key client sectors--namely automotive and construction--carry pretty bleak outlooks (see ' Worthington Industries Defies Gravity'). The company has enacted a stringent cost reduction plan that identified opportunities for $39.0 million in annual savings, of which Worthington has realized $21.8 million, to date
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