March 23, 2006 — Worthington Industries, Inc. reported net earnings of $19.2 million on net sales of $681.5 million for the fiscal third quarter, and net earnings of $86.6 million on net sales of $2,075.2 million for the nine-month period ended February 28, 2006.

Third Quarter Results—The $19.2 million net earnings ($0.21 per diluted share) compare to the record net earnings of $33.1 million ($0.37 per diluted share) for the same period last year. Net sales, $681.5 million, reflect a 9% decrease from last year's record $747.4 million. Results included adjustments related to prior periods that negatively impacted net earnings by $3.2 million ($0.04 per diluted share).

Nine Month Results—Net earnings of $86.6 million ($0.97 per diluted share) compare to net earnings of $138.6 million ($1.57 per diluted share) for the same period last year. Net sales of $2,075.2 million were 8% below net sales of $2,261.9 million last year.

"Our third quarter started with a much slower than anticipated December for our steel processing and metal framing segments, and although there was improvement in January and a stronger February, the results for the quarter remained short of our goal," stated John P. McConnell, Chairman and CEO. He added, "We were pleased by the good results in our pressure cylinder segment and, looking ahead, we're off to a good fourth quarter."

Segment Results—In the Steel Processing segment, quarterly net sales of $351.9 million were $62.7 million (15%) lower than $414.6 million in the comparable quarter of fiscal 2005. The decrease was the result of lower selling prices (down 14%) as volumes were flat. Operating income declined from the year-ago period as spreads between selling prices and material costs fell from near-record levels and manufacturing expenses (such as freight, zinc and natural gas) increased. A weak December depressed results for what is a seasonally slow quarter.

In the Metal Framing segment, net sales of $179.7 million were $14.0 million (7%) lower than $193.7 million in the comparable quarter of fiscal 2005. Higher volumes (6%) partially offset the effect of lower pricing (down 13%) as market pricing decreased from the elevated levels of last year. A narrower spread between selling prices and material costs was primarily responsible for the decline in operating income from last year. Higher freight costs also negatively impacted both material costs and manufacturing expenses.

In the Pressure Cylinders segment, net sales decreased $1.7 million (2%) to $110.6 million from $112.3 million in the comparable quarter of fiscal 2005. The strengthened U.S. dollar vs. the euro negatively impacted reported U.S. dollar sales of the European operations by $2.8 million. While unit volumes were down 6% due to decreased sales of 14.1-oz. disposable cylinders, average selling prices increased 5%. Operating income was comparable to the year-ago period and better than historical norms for this seasonally slow quarter.

Worthington's six unconsolidated joint ventures contributed $8.2 million in equity income, down 45% or $6.6 million from $14.8 million in the year ago quarter. An unfavorable $6.1 million income tax adjustment at Acerex, a Mexican steel processing venture, offset record performance at the largest of the joint ventures, Worthington Armstrong Venture (WAVE), which manufactures ceiling grid for the commercial and residential construction markets.

Adjustments—Operating results for the three months ended February 28, 2006, include the net impact of three adjustments related to the accrual of expenses in prior periods. The impact of these adjustments reduces current quarter net earnings by $3.2 million, or $0.04 per share.

Had these adjustments been recorded in prior periods, estimated earnings in fiscal 2006 would increase by $0.01 per share and earnings in fiscal 2005 would have decreased by $0.01 per share. The pertinent issues and the impact of the related adjustments are as follows:

• Under-accrual of income taxes over the last five years at the Acerex joint venture in Mexico resulted in a $6.1 million decrease to equity income in the current quarter.
• Under-accrual of consulting expenses during the previous five quarters resulted in a $4.0 million increase to selling, general and administrative expenses in the current quarter.
• Over-accrual in the consolidated income tax provision over the last nine years relating to the foreign earnings of the WAVE joint venture resulted in a $3.2 million reduction to income tax expense in the current quarter.

The combined impact of these adjustments is not material to previously reported earnings for any prior fiscal year, estimated income for fiscal 2006 or to the trend of earnings.

Worthington Industries is a leading diversified metal processing company with annual sales of approximately $3 billion. The Columbus, Ohio, based company is a premier North American value-added steel processor and a leader in manufactured metal products such as metal framing, pressure cylinders, automotive past model service stampings, metal ceiling grid systems and laser welded blanks. Worthington employs more than 7,500 people and operates 64 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. Worthington Industries is listed as one of America's Most Admired Companies and one of the 100 Best Companies to Work For in America by Fortune magazine.