Worthington Industries, Inc. reported net earnings of $47.6 million on net sales of $745.2 million, and net earnings of $105.5 million on net sales of $1,514.5 million for the three and six-month periods ended November 30, 2004.

Second Quarter Results — Net earnings of $47.6 million ($0.54 per diluted share) compare to $16.9 million ($0.20 per diluted share) for the same period last year. Net sales were $745.2 million, an increase of 38% from last year's $540.1 million.

Six Month Results — Net earnings were $105.5 million ($1.19 per diluted share) compare to $22.8 million and $0.26, respectively, for the same period last year. Net sales rose 46% to $1,514.5 million from $1,038.1 million last year.

Comments — "I am pleased to report our third consecutive quarter of record quarterly earnings," said John McConnell, Chairman and CEO of Worthington Industries. "These excellent results for the second quarter do not include any inventory holding benefit and were obtained when two of our key market segments — automotive and commercial construction — were not at their peak. Our core businesses and joint ventures are running very well. We have also announced several new growth opportunities during the quarter:

• Acquired the propane and specialty cylinder assets of Western Industries on September 17, 2004, adding to the product line in the Pressure Cylinders segment.
• Formed a joint venture, Dietrich Residential Construction, in the Metal Framing segment with Pacific Steel Construction to construct military housing framed with light gauge steel.
• Formed a joint venture, Dietrich Metal Framing Canada, with Encore Coils to enter the Canadian metal framing market.

"We are committed to the prudent use of capital as we grow the company," concluded McConnell.

Segment Results — In the Processed Steel Products segment, quarterly net sales rose $133.4 million (42%) to $454.8 million from $321.4 million in the comparable quarter of fiscal 2004. The increase in net sales was the result of higher selling prices (up 50%). Volumes were down 6% due entirely to the sale of the Decatur cold rolling assets in August 2004. Excluding the impact of the Decatur sale, volumes were up 2%. Operating income improved because of a widening in the spread between selling prices and material costs.

In the Metal Framing segment, net sales increased $49.4 million (35%) to $191.8 million from $142.4 million in the comparable quarter of fiscal 2004. The increase was the result of higher pricing. Volumes were down 24% as customers faced higher inventories and delayed construction projects due to increased costs. A wider spread between selling prices and material costs was responsible for a significant improvement in operating income.

In the Pressure Cylinders segment, net sales increased $22.1 million (30%) to $94.5 million from $72.4 million in the comparable quarter of fiscal 2004. The propane and specialty cylinder assets of Western Industries, acquired on September 17th, contributed $12.3 million to the sales increase. Excluding sales from the acquired assets, unit volumes were up 9% due to strong sales in most product lines. European revenues rose $4.8 million, of which $2.5 million was due to the weakened dollar. Operating income for the segment increased $2.0 million.

Worthington's unconsolidated joint ventures continued to perform well. Equity in net income of the seven unconsolidated affiliates totaled $11.7 million, up 40% from $8.4 million in the year ago quarter. The improvement was due to strong results from most of the unconsolidated joint ventures.

Worthington Industries is a leading diversified metal processing company with annual 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 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 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 a strong employee-employer partnership serve as the company's foundation.