On December 19, 2023, Worthington Enterprises Inc (WOR, Financial) released its 8-K filing, announcing the financial results for the second quarter of fiscal year 2024, which ended on November 30, 2023. The company reported a solid quarter with net earnings attributable to controlling interest of $24.3 million, or $0.49 per diluted share, compared to $16.2 million, or $0.33 per diluted share, for the same period in the previous fiscal year.
Financial Performance Overview
Worthington Enterprises Inc (WOR, Financial) experienced a 7.5% decrease in net sales compared to the prior year quarter, totaling $1.1 billion. This decline was primarily due to lower average selling prices in the Steel Processing segment and an unfavorable product mix in Building Products, along with lower volumes in Sustainable Energy Solutions. Despite these challenges, the company's gross margin improved by $18.0 million, reaching $123.7 million.
Operational Highlights and Segment Results
The company's operating loss saw an improvement of $1.1 million over the prior year quarter's operating loss, with adjusted operating income of $16.0 million reflecting a $17.6 million increase. Net interest expense decreased by $5.4 million due to higher interest income and lower average debt levels, while equity income rose by $5.6 million to $42.4 million.
Worthington Enterprises Inc (WOR, Financial) also reported segment results, with Consumer Products net sales decreasing by 3.9% to $147.7 million and Building Products net sales down by 13% to $123.0 million. Sustainable Energy Solutions saw a 28% decrease in net sales to $27.5 million. Steel Processing's net sales for the quarter totaled $788.7 million, a decrease from the previous year.
Balance Sheet and Recent Developments
The company's total debt decreased to $623.8 million, with cash and cash equivalents at $430.9 million by the end of the second quarter. Notably, on December 1, 2023, Worthington Enterprises Inc (WOR, Financial) completed the separation of its Steel Processing business into a standalone company, Worthington Steel, Inc.
Management Commentary
President and CEO Andy Rose expressed pride in the company's performance and the successful separation of the Steel Processing business.
For the businesses that are part of Worthington Enterprises, the current quarter was solid despite some headwinds,"Rose stated, highlighting the achievements in Building Products and the positioning of Consumer Products and Sustainable Energy Solutions for a strong start to 2024.
Outlook and Conference Call
Looking forward, Rose conveyed optimism about the company's positioning as a leading designer and manufacturer, with strong balance sheets and market-leading brands. The company will review its fiscal 2024 second quarter results in a conference call on December 20, 2023.
For a more detailed analysis of Worthington Enterprises Inc (WOR, Financial)'s financial results, including comprehensive financial tables and the outlook for the upcoming quarters, investors and interested parties are encouraged to visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Worthington Enterprises Inc for further details.
