Worthington Steel, Inc. (NYSE: WS) has released its financial results for the fiscal 2024 third quarter ended February 29, 2024. The company reported net sales of $805.8 million, showing an increase of $25.1 million or 3% compared to the prior year quarter. Net earnings attributable to controlling interest also saw a significant boost, reaching $49.0 million, or $0.98 per diluted share. This is a substantial improvement from the third quarter of fiscal 2023, where the company recorded net earnings of $5.4 million, or $0.11 per diluted share.
The company's operating income for the third quarter of fiscal 2024 stood at $66.3 million, a remarkable increase from $9.5 million for the same period in 2023. The equity in net income of the unconsolidated affiliate also showed a positive trend, rising to $2.9 million from a negative figure of $0.2 million in the prior year quarter.
In terms of year-to-date performance, Worthington Steel reported net sales of $2,519.6 million for the first nine months of fiscal 2024, compared to $2,723.7 million for the same period in 2023. The operating income for the first nine months of 2024 was $127.2 million, significantly higher than the $30.5 million reported for the first nine months of 2023.
Geoff Gilmore, President and Chief Executive Officer of Worthington Steel, commended the company's performance, stating, "We saw improvements in sales, operating income, and net income over the same quarter in 2023, and our teams are laser-focused on finishing the fiscal year strong."
The financial improvements were attributed to factors such as increased selling prices, higher sales volume, and improved gross margins. The company's gross margin increased by $56.9 million over the prior year quarter to $120.1 million, driven primarily by improved direct spreads and higher volume.
Looking ahead, Gilmore expressed optimism about the company's performance, stating, "Our team is aligned and focused on creating value for our shareholders and working with our customers to ensure the products the world uses every day are stronger, better performing and more durable. I’m optimistic about our future and confident in our team, our growth plans, and our strategy."
In addition to the financial results, the press release also highlighted recent developments, including a licensing agreement signed with Acelormittal Tailored Blanks for patented ablation technology and the declaration of a quarterly dividend of $0.16 per share payable on June 28, 2024, to shareholders of record on June 14, 2024.
Following these announcements, the company's shares moved 1.3%, and are now trading at a price of $35.45. If you want to know more, read the company's complete 8-K report here.
