Worthington Steel Q1 revenue jumps 212% on Kloeckner acquisition
WS•Worthington Steel’s fiscal first-quarter revenue rose 212% year over year to $2.73 billion, while adjusted EPS fell to $0.57 from $0.77 a year earlier.
1. Acquisition drives revenue
Kloeckner contributed $1.77 billion to Worthington Steel’s fiscal first-quarter net sales after the company completed its majority acquisition. Excluding Kloeckner, net sales rose 9% year over year, mainly due to higher direct volumes and selling prices.
2. Earnings and outlook
Adjusted EPS was $0.57, compared with a $0.68 consensus estimate and $0.77 a year earlier. The company reported a $7 million net loss, or $0.14 per share. Higher professional fees related to the acquisition contributed to a $17.6 million rise in SG&A, reducing operating income for the legacy business. Worthington Steel expects the sale of the Kloeckner Disposal Group to be completed within one year of the acquisition.
