EXHIBIT 99.1

Worthington Reports Second Quarter Fiscal 2022 Results

COLUMBUS, Ohio, Dec. 16, 2021 (GLOBE NEWSWIRE) -- Worthington Industries, Inc. (NYSE: WOR) today reported net sales of $1.2 billion and net earnings of $110.3 million, or $2.15 per diluted share, for its fiscal 2022 second quarter ended Nov. 30, 2021. In the second quarter of fiscal 2021, the Company reported net sales of $731.1 million and a net loss of $74.0 million, or $(1.40) per diluted share. Results in both the current and prior year quarter were impacted by certain unique items, as summarized in the table below.

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

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

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

“We had a record second quarter led by strong results from our Steel Processing and Building Products segments,” said President and CEO Andy Rose. “Steel Processing continued to benefit from inventory holding gains and Building Products saw significant contributions from both ClarkDietrich and WAVE and solid growth in our wholly owned businesses. While Consumer Products continued to feel the impact of higher input costs, our teams made good progress toward recovering margin as the quarter progressed and we believe we are well positioned heading into the new calendar year.”

Consolidated Quarterly Results

Net sales for the second quarter of fiscal 2022 were $1.2 billion compared to $731.1 million, an increase of $501.8 million, or 69%, over the comparable quarter in the prior year. The increase was primarily driven by higher average direct selling prices in Steel Processing.

Gross margin increased $49.1 million over the prior year quarter to $184.6 million, primarily due to improved direct spreads in Steel Processing and, to a lesser extent, higher overall volume.

Operating income for the current quarter was $90.5 million, an increase of $53.1 million over the prior year quarter. Excluding impairment and restructuring items in both quarters and the impact of the Company’s investment in Nikola in the prior year quarter, adjusted operating income was $88.5 million for the current quarter, an increase of $35.1 million over the prior year quarter, as the impact of higher gross margin was partially offset by higher SG&A expense, up $14.0 million, on higher profit sharing and bonus expense.

Interest expense of $7.3 million for the current quarter was down slightly, compared to $7.5 million in the prior year quarter.

Equity income from unconsolidated joint ventures increased $34.6 million over the prior year quarter to $60.2 million, driven by higher contributions from ClarkDietrich, WAVE and Serviacero, where results benefited significantly from higher average selling prices. The Company received cash dividends of $28.9 million from unconsolidated joint ventures during the quarter.

Income tax expense was $31.2 million in the current quarter compared to an income tax benefit of $19.4 million in the prior year quarter. The change was driven by higher pre-tax earnings in the current quarter and the impact of the unrealized mark-to-market loss related to the Company’s investment in Nikola in the prior year quarter.  Tax expense in the current quarter reflected an estimated annual effective rate of 22.8% compared to 21.5% for the prior year quarter.  

Balance Sheet

At quarter-end, total debt of $702.2 million was down slightly compared to debt at May 31, 2021, and the Company had $225.2 million of cash, a decrease of $415.1 million from year-end primarily due to an increase in working capital associated with higher steel prices and the acquisition of the Shiloh Industries U.S. BlankLight® business on June 8, 2021.  

Quarterly Segment Results

Steel Processing’s net sales totaled $937.8 million, up $469.1 million over the comparable prior year quarter. The increase in net sales was driven by higher average selling prices and, to a lesser extent, contributions from the acquisition of the Shiloh business. Adjusted EBIT was up $37.4 million over the prior year quarter to $71.9 million on improved operating results and a higher contribution of equity income from Serviacero, which was up $7.0 million benefiting from higher steel prices. Operating income was up $28.2 million over the prior year quarter on higher direct spreads, partially offset by higher conversion and distribution costs. Direct spreads in the current quarter benefited from significant inventory holding gains, estimated to be $42.1 million in the current quarter, compared to immaterial inventory holding gains in the prior year quarter, partially offset by a higher gap between the cost of steel and scrap prices. The mix of direct versus toll tons processed was 47% to 53% in the current quarter, compared to 48% to 52% in the prior year quarter.

Consumer Products’ net sales totaled $140.8 million, up 20%, or $23.3 million, from the comparable prior year quarter, primarily due to the inclusion of General Tools & Instruments which was acquired in the third quarter of fiscal 2021, and to a lesser extent, higher average selling prices. Adjusted EBIT was up slightly over the prior year quarter to $17.6 million as higher material and conversion costs largely offset the impact of higher net sales.

Building Products’ net sales totaled $121.1 million, up 29%, or $27.1 million, from the comparable prior year quarter due to higher volume and higher average selling prices. Adjusted EBIT of $54.7 million was $28.7 million more than the prior year quarter, due primarily to higher equity earnings at ClarkDietrich and WAVE, up $27.2 million on strong volume and the favorable impact of higher steel prices. Operating income was up $1.4 million on the combined impact of higher volume and higher average selling prices, partially offset by an increase in labor and material costs. Volume in the prior year quarter was at depressed levels due to the impact of the COVID-19 pandemic.

Sustainable Energy Solutions’ net sales totaled $33.1 million, down 3%, or $0.9 million, from the comparable prior year quarter on lower volume. Adjusted EBIT was $0.8 million compared to $1.5 million in the prior year quarter, on the combined impact of lower volume and an unfavorable product mix. Both volume and mix in the current quarter were negatively impacted by the ongoing semi-conductor chip shortage. Volume in the current quarter was also negatively impacted by the May 31, 2021, divestiture of the Liquified Petroleum Gas business in Poland. This business continues to evolve as it transitions to serve the global hydrogen ecosystem and adjacent sustainable energies.

Recent Developments

• On Dec. 1, 2021, the Company’s Steel Processing segment completed the acquisition of Tempel Steel Company (“Tempel”) for approximately $255 million plus the assumption of certain long-term liabilities. Tempel is already a global leader in the electrical steel market, which supplies steel laminations to the manufacturers of transformers, electric motors and electric vehicle motors, employing approximately 1,500 people across five manufacturing facilities located in Chicago, Canada, China, India, and Mexico.
• During the second quarter of fiscal 2022, the Company repurchased a total of 235,000 of its common shares for $12.7 million, at an average purchase price of $54.03.

Outlook

“We are optimistic that we will continue to see healthy demand across our key end markets, and we are very excited to have recently closed on our largest acquisition to date with the purchase of Tempel Steel,” Rose said. “The addition of Tempel makes us a global leader in the electrical steel market complementing our existing sustainable mobility offerings in lightweighting and hydrogen and positioning us to more widely serve rapidly growing global markets for electric vehicles and electricity infrastructure.”

Conference Call

Worthington will review fiscal 2022 second quarter results during its quarterly conference call on Dec. 16, 2021, at 2:00 p.m., Eastern Time. Details regarding the conference call can be found on the Company website at www.WorthingtonIndustries.com. 

About Worthington Industries

Worthington Industries (NYSE:WOR) is a leading industrial manufacturing company pursuing its vision to be the transformative partner to its customers, a positive force for its communities and earn exceptional returns for its shareholders. For over six decades, the Company has been delivering innovative solutions to customers spanning industries such as automotive, energy, retail and construction. Worthington is North America’s premier value-added steel processor and producer of laser welded solutions and electrical steel laminations that provide lightweighting, safety critical and emission reducing components to the mobility market. Through on-board fueling systems and gas containment solutions, Worthington serves the growing global hydrogen ecosystem. The Company’s focus on innovation and manufacturing expertise extends to market-leading consumer products in tools, outdoor living and celebrations categories, sold under brand names, Coleman®, Bernzomatic®, Balloon Time®, Mag Torch®, Well-X-Trol®, General®, Garden-Weasel®, Pactool International® and Hawkeye™; as well as market leading building products, including water systems, heating & cooling solutions, architectural and acoustical grid ceilings and metal framing and accessories.

Headquartered in Columbus, Ohio, Worthington operates 58 facilities in 16 states and nine countries, sells into over 90 countries and employs approximately 9,500 people. Founded in 1955, the Company follows a people-first philosophy with earning money for its shareholders as its first corporate goal. Relentlessly finding new ways to drive progress and transform, Worthington is committed to providing better solutions for customers and bettering the communities where it operates by reducing waste, supporting community-based non-profits and developing the next generations of makers.

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 the ever-changing effects of the novel coronavirus (“COVID-19”) pandemic and the various responses of governmental and nongovernmental authorities thereto (such as fiscal stimulus packages, quarantines, shut downs and other restrictions on travel and commercial, social or other activities) on economies (local, national and international) and markets, and on our customers, counterparties, employees and third party service providers; future or expected cash positions, liquidity and ability to access financial markets and capital; outlook, strategy or business plans; future or expected growth, growth potential, forward momentum, performance, competitive position, sales, volumes, cash flows, earnings, margins, balance sheet strengths, debt, financial condition or other financial measures; pricing trends for raw materials and finished goods and the impact of pricing changes; the ability to improve or maintain margins; expected demand or demand trends for the Company or its markets; additions to product lines and opportunities to participate in new markets; expected benefits from Transformation and innovation efforts; the ability to improve performance and competitive position at the Company’s operations; anticipated working capital needs, capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; projected profitability potential; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; projected capacity and the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to 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; expectations for generating improving and sustainable 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 risks, uncertainties and impacts related to the COVID-19 pandemic – the duration, extent and severity of which is impossible to predict, including the possibility of future resurgence in the spread of COVID-19 or variants thereof – and the availability, effectiveness and acceptance of vaccines, and other actual or potential public health emergencies and actions taken by governmental authorities or others in connection therewith; the effect of national, regional and global economic conditions generally and within major product markets, including significant economic disruptions from COVID-19, the actions taken in connection therewith and the implementation of related fiscal stimulus packages; the effect of conditions in national and worldwide financial markets and with respect to the ability of financial institutions to provide capital; the impact of tariffs, the adoption of trade restrictions affecting the Company’s products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; changing oil prices; 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; the outcome of adverse claims experience with respect to workers’ compensation, product recalls or product liability, casualty events or other matters; 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 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 industries in which the Company participates 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, interruption in utility services, civil unrest, international conflicts, 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 exchange rate exposure and the acceptance of the Company’s products in global markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; the level of imports and import prices in the Company’s markets; the impact of environmental laws and regulations or the actions of the United States Environmental Protection Agency or similar regulators which increase costs or limit the Company’s ability to sell certain products; 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 Coronavirus Aid, Relief and Economic Security (CARES) Act, the Consolidated Appropriations Act, 2021, the American Rescue Act of 2021, and the Dodd-Frank Wall Street Reform and the Consumer Protection Act of 2010; the effect of healthcare laws in the United States and potential changes for such laws, especially in light of the COVID-19 pandemic which may increase the Company’s healthcare and other costs and negatively impact the Company’s operations and financial results; cyber security risks; the effects of privacy and information security laws and standards; and other risks described from time to time in the filings of Worthington Industries, Inc. with the United States Securities and Exchange Commission, including those described in “Part I – Item 1A. – Risk Factors” of the Annual Report on Form 10-K of Worthington Industries, Inc. for the fiscal year ended May 31, 2021.

Contacts:
SONYA L. HIGGINBOTHAM
VP, CORPORATE COMMUNICATIONS AND BRAND MANAGEMENT
614.438.7391 | sonya.higginbotham@worthingtonindustries.com 

MARCUS A. ROGIER
TREASURER AND INVESTOR RELATIONS OFFICER
614.840.4663 | marcus.rogier@worthingtonindustries.com 

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

WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In thousands, except per share amounts)

CONSOLIDATED BALANCE SHEETS
WORTHINGTON INDUSTRIES, INC.
(In thousands)

WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

WORTHINGTON INDUSTRIES, INC.
NON-GAAP FINANCIAL MEASURES / SUPPLEMENTAL DATA
(In thousands, except volume and per share amounts)

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). The Company also presents adjusted operating income and adjusted net earnings per diluted share attributable to controlling interest, which generally exclude impairment and restructuring charges as well as other items that management believes are not reflective of, and thus should not be included when evaluating the performance of its ongoing operations. Additionally, the Company presents adjusted operating income and adjusted earnings before interest and taxes attributable to controlling interest (“adjusted EBIT”) for purposes of evaluating segment performance. These represent non-GAAP financial measures and are used by management to evaluate the Company’s performance, engage in financial and operational planning and determine incentive compensation because it believes that these measures provide additional perspective and, in some circumstances are more closely correlated to, the performance of the Company’s ongoing operations.

The following provides a reconciliation to adjusted operating income and adjusted earnings per diluted share from the most comparable GAAP measures for the three months ended November 30, 2021 and 2020.

The following provides a reconciliation to adjusted operating income and adjusted earnings per diluted share from the most comparable GAAP measures for the six months ended November 30, 2021 and 2020.

WORTHINGTON INDUSTRIES, INC.
NON-GAAP FINANCIAL MEASURES / SUPPLEMENTAL DATA
(In thousands, except volume and per share amounts)
(Continued)

To further assist in the analysis of segment results for the periods presented, the following volume and sales information for the three and six months ended November 30, 2021 and 2020 has been provided along with a reconciliation of adjusted EBIT to the most comparable GAAP measure, which is operating income (loss) for purposes of measuring segment profit:

WORTHINGTON INDUSTRIES, INC.
NON-GAAP FINANCIAL MEASURES / SUPPLEMENTAL DATA
(In thousands, except volume)
(Continued)

The following tables outlines our equity income (loss) by unconsolidated affiliate for the periods presented: