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Worthington Industries Reports
3rd Quarter Results

March 18, 2004 — Worthington Industries, Inc. reported earnings of $24.5 million on net sales of $558.1 million for the three months and earnings of $47.3 million on net sales of $1,596.2 million for the nine months ended February 29, 2004.

Third Quarter Results—Earnings, $24.5 million, were up 117% compared to earnings of $11.3 million for the same period last year. Earnings per diluted share were $0.28, up 115% compared to earnings of $0.13 per diluted share last year. Net sales, $558.1 million, represent an increase of 4% from last year's $536.6 million.

Third quarter results include the favorable impact of a $3.9 million pre-tax gain on the sale of certain assets in the Metal Framing business segment. This one-time gain had a $0.03 positive impact on earnings per share.

Nine Month Results—Earnings were $47.3 million and earnings per diluted share were $0.55, compared to $59.6 million and $0.69, respectively, for the same period last year. Net sales declined 2% to $1,596.2 million from $1,629.9 million last year.

Management Comments—"All three of our business segments were solid performers in the third quarter, and each posted its best sales and operating income of the fiscal year during what is a seasonally weak quarter," said John P. McConnell, Chairman and CEO of Worthington Industries. "In fact, this is the best performance for our Metal Framing segment since the Unimast acquisition, more than eighteen months ago.

"During the last two years we have accomplished two major initiatives - integrating Unimast and completing our fiscal 2002 plant consolidation plan. As a result, we have closed 12 facilities and realized $12 million in annualized savings, with much of the Unimast savings still to come.

"The benefits from these actions, as well as several smaller cost cutting efforts, are more visible now. Combined with a resurgent economy and rising price environment they led to widened spreads, reduced costs and improved profitability. A portion of the improvement this quarter is cyclical in nature, as lower priced inventory is liquidated in a rising price environment, and reverses itself when prices fall," stated McConnell.

"Applying the 'golden rule' in our dealings with our customers and suppliers is at the heart of our operating philosophy and is our focus as we manage through the extraordinary price increases in the industry. This focus, with support from an improved business environment and past cost reduction efforts, has us well positioned to generate solid returns," concluded McConnell.

Outlook—The fourth quarter is typically Worthington's strongest due to increased seasonal demand in all three business segments. Improvements in economic and industry conditions may positively impact the major customer segments – automotive and commercial construction. While Big 3 vehicle production is projected to be flat for the fiscal fourth quarter relative to last year, it is expected to increase 18% from the third quarter. Additionally, the U.S. Census Bureau's index of private construction spending confirms that commercial construction activity is beginning to trend upward from five-year lows reached in December 2002.

Worthington Industries is a leading diversified metal processing company with annual net sales of more than $2 billion. The Columbus, Ohio, based company is North America's premier value-added steel processor and a leader in manufactured metal products such as automotive past model service stampings, pressure cylinders, metal framing, metal ceiling grid systems and laser welded blanks. Worthington employs nearly 8,000 people and operates 63 facilities in 10 countries.

Founded in 1955, the company operates under a long-standing corporate philosophy rooted in the golden rule, with earning money for its shareholders as the first corporate goal. This philosophy, an unwavering commitment to the customer, and one of the strongest employee/employer partnerships in American industry serve as the company's foundation.

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