Worthington Industries, Inc., an Ohio-based metal manufacturing company, has reported net sales of $855.9m and a net loss of $4.8m, or $0.09 per share, for its fiscal 2020 first quarter (Q1) ended 31st August (2019).
Net sales for the quarter were down 13% from the comparable quarter in 2018, primarily driven by lower direct volume and lower average direct selling prices in Steel Processing due to a decline in the market price of steel.
Gross margin decreased $25.7m from the prior year quarter to $117.3m, primarily due to compressed direct spreads in Steel Processing, which were negatively impacted by inventory holding losses in the current quarter versus prior year holding gains, combined with lower direct volumes.
Operating loss for Q1 was $14.6m, a decrease of $65.5m from the prior year quarter. The lower gross margin combined with pre-tax restructuring and impairment charges of $41.1m, of which $40.6m related to Engineered Cabs, drove the loss for the quarter.
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