Q1 2025 Worthington Steel Inc Earnings Call Transcript
Key Points
- Worthington Steel Inc (WS) reported a solid first quarter for fiscal year 2025 despite some headwinds.
- The company is making focused investments in the rapidly growing electrical steel market, supporting the transition to more electrified light vehicle fleets and modernization of electrical infrastructure.
- Strategic growth via CapEx and selective acquisitions is leading to margin accretive growth.
- Continuous improvement initiatives are increasing margins, reducing working capital, and adding capacity.
- The company has a strong culture and philosophy, driving improvements not only in business but also in community engagement.
- Sales to the automotive market decreased from 54% to 51% year-over-year, with a 10% decrease in volume shipped to the automotive market.
- First quarter earnings were $28.4 million or $0.56 per share, down from $58.5 million or $1.19 per share in the prior year quarter.
- The company experienced estimated pre-tax inventory holding losses of $16.6 million, compared to gains of $15.5 million in the prior year quarter.
- Gross margin was impacted by lower direct material spreads and lower direct volumes.
- Equity earnings from Serviacero decreased due to lower direct spreads and unfavorable exchange rate movements.
Thank you for standing by and welcome to the Worthington Steelâs first quarter fiscal 2025 earnings conference call. (Operator Instructions).
I'd now like to turn the call over to Melissa Dykstra, Vice President of Communications and Investor Relations. You may begin.
Thank you, operator. Good morning, and welcome to Worthington Steel's first quarter fiscal year 2025 earnings call. On our call today, we have Geoff Gilmore, Worthington Steel's President and Chief Executive Officer; Jeff Klingler, Executive Vice President and Chief Operating Officer; Tim Adams, Vice President and Chief Financial Officer.
Before we get started, I'd like to remind everyone that certain statements made today are forward-looking within the meaning of the 1995 Private Securities Litigation Reform Act. These statements are subject to risks and uncertainties that could cause actual results to differ from those suggested. We issued our earnings release yesterday
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