Worthington Reports Second Quarter Fiscal 2015 Results

COLUMBUS, OH--(Marketwired - Dec 17, 2014) - Worthington Industries, Inc. (NYSE: WOR) today reported net sales of $871.0 million and net earnings of $29.5 million, or $0.43 per diluted share, for its fiscal 2015 second quarter ended November 30, 2014. In last year's second quarter, the Company reported net sales of $769.9 million and net earnings of $23.0 million, or $0.32 per diluted share. On an adjusted basis, net earnings were $37.9 million, or $0.55 per diluted share, in the current quarter compared to $40.4 million, or $0.56 per diluted share, in the comparable prior year quarter. A reconciliation to the comparable GAAP financial measures is included in the supplemental financial data.

Financial highlights for the current and comparative periods are as follows:

(U.S. dollars in millions, except per share data)

		2Q 2015			1Q 2015			2Q 2014			6M 2015			6M 2014
Net sales		$	871.0		$	862.4		$	769.9		$	1,733.4		$	1,462.2
Operating income			33.2			52.2			19.5			85.4			58.1
Equity income			22.3			27.9			21.1			50.2			48.0
Net earnings			29.5			44.2			23.0			73.6			77.5
Earnings per share		$	0.43		$	0.63		$	0.32		$	1.06		$	1.08

"Steel Processing had a great quarter with increased volume as they continued to perform well," said John McConnell, Chairman and CEO. "However, while we had strong revenue growth across the Company, we were disappointed we did not meet our own Company-wide expectations for results this quarter. We have a couple areas needing attention, particularly one operation in our oil and gas equipment business and one in Engineered Cabs. Both had elevated manufacturing costs and the oil and gas equipment business facility had a product miss on the commercial side. These are isolated issues and we are taking corrective steps so that we continue our Company's forward momentum."

Consolidated Quarterly Results

Net sales for the second quarter ended November 30, 2014, were $871.0 million, up 13% from the comparable quarter in the prior year, when net sales were $769.9 million. The increase was driven largely by higher volume in Steel Processing and the impact of recent acquisitions in Pressure Cylinders.

Gross margin declined $3.0 million from the prior year quarter to $125.2 million. Higher manufacturing expenses in all three business units combined with the unfavorable impact of inventory holding losses in Steel Processing in the current quarter, compared to inventory holding gains in the prior year quarter, more than offset the impact of higher volume. 

Operating income increased $13.7 million in the current quarter to $33.2 million as impairment charges in the current quarter were down $16.5 million from the prior year. Impairment charges in the current quarter include $6.3 million related to the Company's 60%-owned consolidated joint venture in India, $3.2 million related to the Company's aluminum high-pressure cylinder business in New Albany, Miss., $2.4 million related to the Advanced Component Technologies business in Engineered Cabs, $1.2 million related to the military construction business and $1.1 million related to certain non-core Steel Processing assets. The prior year included a $30.7 million impairment charge related to the write-off of certain trade name assets.

Interest expense was $9.7 million for the current quarter, compared to $6.3 million in the comparable period in the prior year. The increase was due to the impact of higher average debt levels resulting from the issuance of $250.0 million of notes in April 2014. 

Equity in net income from unconsolidated joint ventures increased $1.2 million over the prior year quarter to $22.3 million on net sales of $388.7 million. The overall increase was driven by WAVE and ArtiFlex, where Worthington's portion of equity income increased by $2.2 million and $1.3 million, respectively. However, income from ClarkDietrich decreased $1.9 million on lower volumes.

Income tax expense was $15.6 million in the current quarter compared to $8.5 million in the comparable quarter in the prior year. The increase was due to higher earnings and a higher effective tax rate. Tax expense in the current quarter reflects an estimated annual effective rate of 33.5% compared to 27.8% for the prior year quarter. 

Balance Sheet

At quarter end, total debt was $685.6 million, up $19.0 million from August 31, 2014, as a result of borrowings against a long-term credit facility entered into by the consolidated joint venture in Turkey in September 2014. The Company had $96.5 million of cash at quarter end, which will be used to repay $100.0 million of current notes due in December 2014.

Quarterly Segment Results

Steel Processing's net sales of $552.8 million were up 12%, or $60.6 million, due to the combined impact of higher volume and higher average selling prices. Operating income decreased slightly from the prior year quarter to $33.9 million due to higher manufacturing expenses and the unfavorable impact of inventory holding losses in the current quarter compared to inventory holding gains in the prior year quarter. The change between the inventory holding gains and losses more than offset the impact of higher volume. 

Pressure Cylinders' net sales of $252.7 million were up 18%, or $38.7 million, from the comparable prior year quarter driven by recent acquisitions. Operating income increased $1.3 million over the prior year quarter to $9.6 million as contributions from recent acquisitions were largely offset by higher manufacturing and SG&A expense.

Engineered Cabs' net sales increased $3.7 million in the current quarter to $51.5 million on higher volume. Operating loss in the current quarter decreased $15.3 million to $5.6 million due to the favorable impact of lower impairment charges, which were down $16.7 million from the prior year quarter. Excluding the impact of the impairment charges, operating income was down $1.4 million largely due to several start-up programs driving an increase in manufacturing expenses.

The "Other" category includes the Construction Services and Energy Innovations operating segments, as well as non-allocated corporate expenses. Operations in the "Other" category reported net sales of $14.0 million, a decrease of $1.9 million from the prior year quarter, mostly due to reductions in the Energy Innovations business. The "Other" category reported an operating loss of $4.7 million driven by losses within Construction Services, which included a $1.2 million impairment charge related to the military construction business. 

Recent Business Developments

• On October 20, 2014, the Company acquired an 80% interest in dHybrid Systems, LLC, a leader in compressed natural gas fuel systems for large trucks. The remaining 20% was retained by the founding member.
  
  
• On November 13, 2014, the Company's consolidated tailor welded blanking joint venture, TWB, opened a new facility in Cambridge, Ontario. The facility will initially operate one laser welding line with the capacity to produce 2 million tailor welded blanks per year.
  
  
• During the quarter, the Company repurchased a total of 600,000 common shares for $21.5 million at an average price of $35.91.
  
  
• On December 17, 2014, Worthington Industries board of directors declared a quarterly dividend of $0.18 per share payable on March 27, 2015 to shareholders of record on March 13, 2015.
  
  

Outlook

"There are solid areas of growth, particularly in automotive, where we are working with our customers on a number of initiatives including light weighting solutions," McConnell said. "We expect Steel Processing to continue to perform well. There are some markets, like agriculture, where we are seeing slower demand. However, the Company is on track to continue to reach our primary goal of year-over-year earnings growth and positive cash flow." 

Conference Call

Worthington will review second quarter results during its quarterly conference call on December 18, 2014, at 10:30 a.m., Eastern Time. Details regarding the conference call can be found on the Company website at www.WorthingtonIndustries.com.

About Worthington Industries 

Worthington Industries is a leading global diversified metals manufacturing company with 2014 fiscal year sales of $3.1 billion. Headquartered in Columbus, Ohio, Worthington is North America's premier value-added steel processor providing customers with wide ranging capabilities, products and services for a variety of markets including automotive, construction and agriculture; a global leader in manufacturing pressure cylinders for industrial gas and cryogenic applications, CNG and LNG storage, transportation and alternative fuel tanks, oil and gas equipment, and brand consumer products for camping, grilling, hand torch solutions, scuba diving and helium balloon kits; and a manufacturer of operator cabs for heavy mobile industrial equipment; laser welded blanks for light weighting applications; automotive racking solutions; and through joint ventures, complete ceiling grid solutions; automotive tooling and stampings; and steel framing for commercial construction. Worthington employs approximately 11,000 people and operates 82 facilities in 10 countries. 

Founded in 1955, the Company operates under a long-standing corporate philosophy rooted in the golden rule. Earning money for its shareholders is the first corporate goal. This philosophy serves as the basis for an unwavering commitment to the customer, supplier, and shareholder, and as the Company's foundation for one of the strongest employee-employer partnerships in American industry.

Safe Harbor Statement

The Company wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements by the Company relating to outlook, strategy or business plans; the ability to correct performance issues at operations; future or expected growth, forward momentum, performance, sales, volumes, cash flows, earnings, balance sheet strengths, debt, financial condition or other financial measures; projected profitability potential, capacity, and working capital needs; demand trends for the Company or its markets; additions to product lines and opportunities to participate in new markets; pricing trends for raw materials and finished goods and the impact of pricing changes; anticipated capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, newly-created joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to maintain margins and capture and maintain market share and to develop or take advantage of future opportunities, customer initiatives, new businesses, new products and new markets; expectations for Company and customer inventories, jobs and orders; expectations for the economy and markets or improvements therein; expected benefits from transformation plans, cost reduction efforts and other new initiatives; expectations for increasing volatility or improving and sustaining earnings, earnings potential, margins or shareholder value; effects of judicial rulings and other non-historical matters constitute "forward-looking statements" within the meaning of the Act. Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation, the effect of national, regional and worldwide economic conditions generally and within major product markets, including a recurrent slowing economy; the effect of conditions in national and worldwide financial markets; product demand and pricing; changes in product mix, product substitution and market acceptance of the Company's products; fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities and other items required by operations; effects of facility closures and the consolidation of operations; the effect of financial difficulties, consolidation and other changes within the steel, automotive, construction and other industries in which the Company participates; failure to maintain appropriate levels of inventories; financial difficulties (including bankruptcy filings) of original equipment manufacturers, end-users and customers, suppliers, joint venture partners and others with whom the Company does business; the ability to realize targeted expense reductions from headcount reductions, facility closures and other cost reduction efforts; the ability to realize other cost savings and operational, sales and sourcing improvements and efficiencies, and other expected benefits from transformation initiatives, on a timely basis; the overall success of, and the ability to integrate newly-acquired businesses and joint ventures, maintain and develop their customers, and achieve synergies and other expected benefits and cost savings therefrom; capacity levels and efficiencies, within facilities, within major product markets and within the industry as a whole; the effect of disruption in the business of suppliers, customers, facilities and shipping operations due to adverse weather, casualty events, equipment breakdowns, acts of war or terrorist activities or other causes; changes in customer demand, inventories, spending patterns, product choices, and supplier choices; risks associated with doing business internationally, including economic, political and social instability, foreign currency exposure and the acceptance of our products in these markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; the outcome of adverse claims experience with respect to workers' compensation, product recalls or product liability, casualty events or other matters; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; level of imports and import prices in the Company's markets; the impact of judicial rulings and governmental regulations, both in the United States and abroad, including those adopted by the United States Securities and Exchange Commission and other governmental agencies as contemplated by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of changes to healthcare laws in the United States which may increase our healthcare and other costs and negatively impact our operations and financial results; and other risks described from time to time in the Company's filings with the United States Securities and Exchange Commission, including those described in "Part I - Item 1A. - Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended May 31, 2014.

WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
			Three Months Ended								Six Months Ended
			November 30,								November 30,
			2014				2013				2014				2013
Net sales			$	871,012			$	769,900			$	1,733,426			$	1,462,191
Cost of goods sold				745,789				641,668				1,478,696				1,222,995
	Gross margin			125,223				128,232				254,730				239,196
Selling, general and administrative expense				77,308				78,395				152,563				149,935
Impairment of long-lived assets				14,235				30,734				16,185				35,375
Restructuring and other expense (income)				405				(1,182	)			398				(5,179	)
Joint venture transactions				83				786				190				928
	Operating income			33,192				19,499				85,394				58,137
Other income (expense):
	Miscellaneous income			1,220				2,472				1,543				13,409
	Interest expense			(9,676	)			(6,258	)			(19,192	)			(12,498	)
	Equity in net income of unconsolidated affiliates			22,319				21,086				50,243				48,037
	Earnings before income taxes			47,055				36,799				117,988				107,085
Income tax expense				15,600				8,459				37,713				22,392
Net earnings				31,455				28,340				80,275				84,693
Net earnings attributable to noncontrolling interest				1,993				5,363				6,645				7,159
Net earnings attributable to controlling interest			$	29,462			$	22,977			$	73,630			$	77,534
Basic
Average common shares outstanding				67,105				69,304				67,337				69,454
Earnings per share attributable to controlling interest			$	0.44			$	0.33			$	1.09			$	1.12
Diluted
Average common shares outstanding				69,181				71,826				69,780				72,089
Earnings per share attributable to controlling interest			$	0.43			$	0.32			$	1.06			$	1.08
Common shares outstanding at end of period				66,912				69,138				66,912				69,138
Cash dividends declared per share			$	0.18			$	0.15			$	0.36			$	0.30

WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
					November 30,			May 31,
					2014			2014
Assets
Current assets:
	Cash and cash equivalents				$	96,537		$	190,079
	Receivables, less allowances of $2,997 and $3,043 at November 30, 2014 and May 31, 2014, respectively					491,687			493,127
	Inventories:
		Raw materials				236,126			213,173
		Work in process				118,796			105,872
		Finished products				99,853			90,957
			Total inventories			454,775			410,002
	Income taxes receivable					13,757			5,438
	Assets held for sale					28,264			32,235
	Deferred income taxes					23,064			24,272
	Prepaid expenses and other current assets					46,310			43,769
		Total current assets				1,154,394			1,198,922
Investments in unconsolidated affiliates						194,686			179,113
Goodwill						283,418			251,093
Other intangible assets, net of accumulated amortization of $45,500 and $35,506 at November 30, 2014 and May 31, 2014, respectively						150,534			145,993
Other assets						22,450			22,399
Property, plant & equipment:
	Land					15,238			15,260
	Buildings and improvements					218,801			213,848
	Machinery and equipment					853,219			848,889
	Construction in progress					43,115			32,135
		Total property, plant & equipment				1,130,373			1,110,132
		Less: accumulated depreciation				628,464			611,271
Property, plant and equipment, net						501,909			498,861
Total assets					$	2,307,391		$	2,296,381
Liabilities and equity
Current liabilities:
	Accounts payable				$	324,886		$	333,744
	Short-term borrowings					10,769			10,362
	Accrued compensation, contributions to employee benefit plans and related taxes					62,985			78,514
	Dividends payable					13,010			11,044
	Other accrued items					60,961			49,873
	Income taxes payable					4,396			4,953
	Current maturities of long-term debt					101,140			101,173
		Total current liabilities				578,147			589,663
Other liabilities						62,297			76,426
Distributions in excess of investment in unconsolidated affiliate						59,576			59,287
Long-term debt						573,734			554,790
Deferred income taxes						62,629			71,333
		Total liabilities				1,336,383			1,351,499
Shareholders' equity - controlling interest						872,502			850,812
Noncontrolling interest						98,506			94,070
		Total equity				971,008			944,882
Total liabilities and equity					$	2,307,391		$	2,296,381

WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
			Three Months Ended								Six Months Ended
			November 30,								November 30,
			2014				2013				2014				2013
Operating activities
Net earnings			$	31,455			$	28,340			$	80,275			$	84,693
Adjustments to reconcile net earnings to net cash provided by operating activities:
	Depreciation and amortization			21,200				20,095				41,567				39,555
	Impairment of long-lived assets			14,235				30,734				16,185				35,375
	Provision for deferred income taxes			(5,492	)			(13,110	)			(6,027	)			(21,534	)
	Bad debt expense (income)			143				185				(60	)			(296	)
	Equity in net income of unconsolidated affiliates, net of distributions			(813	)			(3,506	)			(7,803	)			(9,421	)
	Net loss (gain) on sale of assets			3,264				(7,188	)			434				(11,850	)
	Stock-based compensation			4,498				4,722				8,853				8,502
	Excess tax benefits - stock-based compensation			(621	)			(1,534	)			(5,753	)			(5,832	)
	Gain on previously held equity interest in TWB			-				-				-				(11,000	)
Changes in assets and liabilities, net of impact of acquisitions:
	Receivables			(6,916	)			7,574				5,836				15,229
	Inventories			16,087				(21,838	)			(35,130	)			(21,323	)
	Prepaid expenses and other current assets			(5,232	)			4,072				(8,104	)			1,707
	Other assets			3,095				139				3,216				575
	Accounts payable and accrued expenses			(72,095	)			(23,922	)			(30,205	)			16,700
	Other liabilities			(505	)			4,556				(6,496	)			2,703
Net cash provided by operating activities				2,303				29,319				56,788				123,783
Investing activities
	Investment in property, plant and equipment			(23,273	)			(17,060	)			(47,146	)			(30,414	)
	Investment in notes receivable			(2,300	)			-				(7,300	)			-
	Acquisitions, net of cash acquired			(14,543	)			276				(51,093	)			53,233
	Distributions from (investments in) unconsolidated affiliates			129				3,668				(3,671	)			9,223
	Proceeds from sale of assets and insurance			27				16,086				292				23,733
Net cash provided (used) by investing activities				(39,960	)			2,970				(108,918	)			55,775
Financing activities
	Net proceeds from (repayments of) short-term borrowings			(196	)			(18,736	)			359				(70,277	)
	Proceeds from long-term debt			20,480				-				20,480				-
	Principal payments on long-term debt			(511	)			(285	)			(813	)			(569	)
	Proceeds from (payments for) issuance of common shares			566				4,286				(454	)			6,487
	Excess tax benefits - stock-based compensation			621				1,534				5,753				5,832
	Payments to noncontrolling interest			-				(875	)			(2,867	)			(2,638	)
	Repurchase of common shares			(21,549	)			(19,800	)			(41,620	)			(50,316	)
	Dividends paid			(12,138	)			(10,407	)			(22,250	)			(10,407	)
Net cash used by financing activities				(12,727	)			(44,283	)			(41,412	)			(121,888	)
Increase (decrease) in cash and cash equivalents				(50,384	)			(11,994	)			(93,542	)			57,670
Cash and cash equivalents at beginning of period				146,921				121,049				190,079				51,385
Cash and cash equivalents at end of period			$	96,537			$	109,055			$	96,537			$	109,055

WORTHINGTON INDUSTRIES, INC.
SUPPLEMENTAL DATA
(In thousands, except Pressure Cylinders units)
This supplemental information is provided to assist in the analysis of the results of operations.
				Three Months Ended								Six Months Ended
				November 30,								November 30,
				2014				2013				2014				2013
Volume:
	Steel Processing (tons)				899				817				1,804				1,536
	Pressure Cylinders (units)				19,454,423				17,693,730				40,208,384				38,540,607
Net sales:
	Steel Processing			$	552,756			$	492,134			$	1,105,087			$	894,575
	Pressure Cylinders				252,744				214,022				501,703				430,922
	Engineered Cabs				51,540				47,868				101,094				96,329
	Other				13,972				15,876				25,542				40,365
		Total net sales		$	871,012			$	769,900			$	1,733,426			$	1,462,191
Material cost:
	Steel Processing			$	400,677			$	349,860			$	795,569			$	637,572
	Pressure Cylinders				115,832				95,234				234,269				196,814
	Engineered Cabs				23,674				21,522				45,696				43,629
Selling, general and administrative expense:
	Steel Processing			$	30,253			$	34,638			$	62,153			$	63,457
	Pressure Cylinders				35,941				32,630				70,954				63,267
	Engineered Cabs				7,086				8,105				13,910				14,997
	Other				4,028				3,022				5,546				8,214
		Total selling, general and administrative expense		$	77,308			$	78,395			$	152,563			$	149,935
Operating income (loss):
	Steel Processing			$	33,877			$	34,786			$	69,746			$	57,449
	Pressure Cylinders				9,580				8,275				29,186				27,729
	Engineered Cabs				(5,609	)			(20,892	)			(7,754	)			(21,196	)
	Other				(4,656	)			(2,670	)			(5,784	)			(5,845	)
		Total operating income		$	33,192			$	19,499			$	85,394			$	58,137
The following provides detail of Pressure Cylinders net sales and volume by principal class of products.
				Three Months Ended								Six Months Ended
				November 30,								November 30,
				2014				2013				2014				2013
Volume (units):
	Consumer Products				13,492,863				11,304,860				28,088,649				25,752,635
	Industrial Products				5,869,129				6,298,973				11,937,000				12,614,131
	Alternative Fuels				88,510				87,242				172,819				168,463
	Oil and Gas Equipment				3,646				2,655				7,583				5,378
	Cryogenics				275				-				2,333				-
		Total Pressure Cylinders			19,454,423				17,693,730				40,208,384				38,540,607
Net sales:
	Consumer Products			$	62,213			$	52,639			$	129,745			$	115,541
	Industrial Products				103,921				109,999				210,137				213,748
	Alternative Fuels				17,045				16,333				32,603				33,554
	Oil and Gas Equipment				63,170				35,051				117,679				68,079
	Cryogenics				6,395				-				11,539				-
		Total Pressure Cylinders		$	252,744			$	214,022			$	501,703			$	430,922

WORTHINGTON INDUSTRIES, INC.
SUPPLEMENTAL DATA
(In thousands)
The following provides detail of impairment of long-lived assets, restructuring and other expense (income), and joint venture transactions included in operating income (loss) by segment presented above.
				Three Months Ended							Six Months Ended
				November 30,							November 30,
				2014			2013				2014				2013
Impairment of long-lived assets:
	Steel Processing			$	1,100		$	-			$	3,050			$	4,641
	Pressure Cylinders				9,567			11,634				9,567				11,634
	Engineered Cabs				2,389			19,100				2,389				19,100
	Other				1,179			-				1,179				-
		Total impairment of long-lived assets		$	14,235		$	30,734			$	16,185			$	35,375
Restructuring and other expense (income):
	Steel Processing			$	-		$	-			$	(30	)		$	(4,762	)
	Pressure Cylinders				405			(1,849	)			428				(1,447	)
	Engineered Cabs				-			-				-				-
	Other				-			667				-				1,030
		Total restructuring and other expense (income)		$	405		$	(1,182	)		$	398			$	(5,179	)
Joint venture transactions:
	Steel Processing			$	-		$	-			$	-			$	-
	Pressure Cylinders				-			-				-				-
	Engineered Cabs				-			-				-				-
	Other				83			786				190				928
		Total joint venture transactions		$	83		$	786			$	190			$	928

WORTHINGTON INDUSTRIES, INC.
GAAP / NON-GAAP RECONCILIATION
(In thousands, except per share amounts)
Adjusted net earnings and adjusted earnings per diluted share are non-GAAP financial measures. In general, the measures exclude impairment and restructuring charges and other nonrecurring items that management does not believe reflect the Company's core businesses. Management uses these non-GAAP financial measures internally to evaluate the Company's operating performance; however, these measures should not be considered a substitute for financial measures calculated in accordance with GAAP. The following provides a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
			Three Months Ended November 30, 2014									Three Months Ended November 30, 2013
						Non-GAAP									Non-GAAP
			GAAP			Adjustments			Non-GAAP			GAAP			Adjustments			Non-GAAP
Net sales			$	871,012		$	-		$	871,012		$	769,900		$	-		$	769,900
Cost of goods sold				745,789			-			745,789			641,668			-			641,668
	Gross margin			125,223			-			125,223			128,232			-			128,232
Selling, general and administrative expense				77,308			-			77,308			78,395			-			78,395
Impairment of long-lived assets(a)				14,235			(14,235	)		-			30,734			(30,734	)		-
Restructuring and other expense (income)				405			(405	)		-			(1,182	)		1,182			-
Joint venture transactions				83			(83	)		-			786			(786	)		-
	Operating income			33,192			14,723			47,915			19,499			30,338			49,837
Other income (expense):
	Miscellaneous income(b)			1,220			(846	)		374			2,472			(2,410	)		62
	Interest expense			(9,676	)		-			(9,676	)		(6,258	)		-			(6,258	)
	Equity in net income of unconsolidated affiliates			22,319			-			22,319			21,086			-			21,086
	Earnings before income taxes			47,055			13,877			60,932			36,799			27,928			64,727
Income tax expense				15,600			2,887			18,487			8,459			10,521			18,980
Net earnings				31,455			10,990			42,445			28,340			17,407			45,747
Net earnings attributable to noncontrolling interest				1,993			2,538			4,531			5,363			-			5,363
Net earnings attributable to controlling interest			$	29,462		$	8,452		$	37,914		$	22,977		$	17,407		$	40,384
Earnings per diluted share attributable to controlling interest			$	0.43		$	0.12		$	0.55		$	0.32		$	0.24		$	0.56

(a) Includes $6,346 related to the Company's 60%-owned consolidated joint venture in India, $3,221 related to the Company's aluminum high-pressure cylinders business in New Albany, Mississippi, $2,389 related to the Avanced Component Technologies business within Engineered Cabs, $1,179 related to the military contsruction business and $1,100 related to certain non-core Steel Processing assets for the three months ended November 30, 2014, and $30,734 related to the write-off of certain trade name intangible assets in connection with a re-branding initiative for the three months ended November 30, 2013.

(b) Includes income from insurance proceeds of $846 for the three months ended November 30, 2014, and $2,410 for the three months ended November 30, 2013.

The sum of the components may not equal the total due to rounding.

We apply varying tax rates depending on the item's nature and the tax jurisdiction where it is incurred.

CONTACTS:
Cathy M. Lyttle
VP, Corporate Communications and Investor Relations
Phone: [phone]
E-mail: Email Contact

Sonya L. Higginbotham
Director, Corporate Communications
Phone: [phone]
E-mail: Email Contact

200 Old Wilson Bridge Rd.
Columbus, Ohio 43085
WorthingtonIndustries.com