June 30, 2006 — Worthington Industries reported net earnings of $59.4 million on record net sales of $822.0 million for the fourth quarter, and net earnings of $146.0 million on net sales of $2,897.2 million for the fiscal year ended May 31, 2006.

Fourth Quarter Results—Net earnings of $59.4 million ($0.67 per diluted share) reflect a 46% increase from fourth quarter 2005 net earnings of $40.8 million ($0.46 per diluted share). Aided by a $26.6 million pre-tax gain ($0.14 per share) on the April 2006 sale of a 50% partnership interest in a Mexican steel processing joint venture, this fourth quarter was the second best in the company's history. Even excluding this gain, earnings per share were up 15%.

Net sales, a record $822.0 million, surpassed last year's record $817.0 million and were the best in the company’s history. Volumes were up in all three business segments (Steel Processing, Metal Framing and Pressure Cylinders) compared to last quarter and in Steel Processing and Metal Framing compared to the year-ago fourth quarter. In addition, unit selling prices were up in all three business segments compared to last quarter.

Full Year Results—Net earnings of $146.0 million ($1.64 per diluted share) were down 19% from the record set for the same period last year of $179.4 million ($2.03 per diluted share). Net sales of $2,897.2 million fell 6% from a record $3,078.9 million last year.

Annual return on equity was 16.5% in fiscal 2006.

CEO Comments—"I am very pleased with our results for the fourth quarter in providing a strong finish to fiscal 2006," said John P. McConnell, Chairman and CEO. "Every business segment performed well, with our Pressure Cylinders segment leading the way by producing a record performance in both sales and earnings. I am very proud of all 8,000 of our employees as they continue to find innovative ways to lower our costs, improve our customer service and bring new products to the market," he added.

"Our results for fiscal 2006 confirm that our strategic decisions in the late 90's were sound," McConnell noted. "We are executing our strategy of growth, while aligning these efforts with flat-rolled steel products and services. We have provided solid performances during various economic cycles, while generating solid growth and returns over the past six years."

Quarterly Segment Results—In the Steel Processing segment, quarterly net sales fell 5%, ($20.3 million), to $418.1 million from $438.5 million in the comparable quarter of fiscal 2005. The decline in net sales was due to lower pricing (down 11%) relative to the prior year, as volumes were up 7%. Operating income declined due to higher zinc costs and a narrowing of the spread between selling prices and material costs for the fourth quarter of fiscal 2006 compared to the fourth quarter of fiscal 2005. Pricing, volume and spread all improved relative to the third quarter of fiscal 2006 and trended up throughout the quarter.

In the Metal Framing segment, net sales decreased 1% ($3.0 million) to $219.1 million from $222.1 million in the comparable quarter of fiscal 2005. Volumes improved 3% but were offset by lower pricing, down 5% compared to the year-ago quarter. Increased demand for construction products and rising raw material costs, primarily galvanized steel, have supported a series of industry-wide price increases beginning in April 2006. Operating income in the month of May was more than double any other month of the year. For the quarter, operating income declined $1.9 million, compared to the prior-year period, due to a $2.7 million charge (recorded in cost of goods sold) associated with the recent closure of the LaPorte, Ind., facility. The closure of this facility was one of many efficiencies generated from the fiscal 2003 acquisition of Unimast and is expected to result in annual savings of $1.3 million.

In the Pressure Cylinders segment, net sales increased 7% ($9.5 million) to a record $137.7 million from $128.2 million in the comparable quarter of fiscal 2005. Excluding 14.1 oz. disposable cylinders, which declined 1.1 million units, unit volumes increased 5%. Average selling prices improved due to price increases in certain product lines, to cover increased material costs, and due to product mix. Strong results in Europe, where profitability more than doubled, and plant consolidation savings, realized from the Wisconsin operations acquired in the prior fiscal year, led to an 82% improvement in operating income from the prior year. Operating income set a record for both the quarter and the year.

Worthington's joint ventures added significantly to fourth quarter results. Equity in the net income of five unconsolidated affiliates totaled a record $20.8 million for the quarter, compared to $14.1 million in the year ago quarter, a 48% increase. Both WAVE and TWB had record quarters and WAVE had a record year.

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 8,000 people and operates 62 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.