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Worthington Steel Inc. (WS+4.14%) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.
The filing reports net sales of $739 million for the quarter, a decrease from $808 million in the same period the previous year. This decline is attributed to lower volumes and direct selling prices.
Gross margin increased to $80 million, compared to $60.2 million in the previous year, due to favorable direct spreads despite lower volumes.
Selling, general, and administrative expenses rose to $61.1 million from $54.1 million, driven by increased wage and benefit costs and additional professional fees.
The company reported an operating income of $18.9 million, compared to an operating loss of $8.8 million in the previous year.
Net earnings attributable to controlling interest were $12.8 million, up from a loss of $6 million in the previous year.
Worthington Steel's effective tax rate was 22.2% for the quarter, compared to 29.9% in the same period last year.
Cash provided by operating activities was $122.6 million, while cash used in investing and financing activities was $55.2 million and $55.6 million, respectively.
The company declared a quarterly cash dividend of $0.16 per common share, payable on March 28, 2025.
Worthington Steel completed the acquisition of a controlling equity stake in Sitem Group, a producer of electric motor laminations, for approximately €51 million.
The filing also details various financial agreements, including a revolving credit facility with a borrowing capacity of $550 million.
The company continues to focus on expanding its electrical steel operations and managing its exposure to market risks, including commodity price fluctuations and foreign exchange rate risks.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Worthington Steel Inc. quarterly 10-Q report dated January 13, 2025. To report an error, please email earnings@qz.com.