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Worthington Industries (WOR - Free Report) has purchased Amtrol, a leading manufacturer of water system tanks and pressure cylinders, for roughly $283 million. The acquisition combines the two leaders in the U.S. and European LP Gas business, adding well and water tank product lines to Worthington’s portfolio.
Amtrol is a leading producer and distributor of residential expansion and well water tanks, which are sold through large plumbing, heating, ventilation and air conditioning (PHVAC) retailers and wholesalers.
The company said that the addition of Amtrol in its portfolio strengthens its consumer products and industrial gas businesses and complements its refrigerant cylinder manufacturing capabilities. It also bodes well with the company’s core competencies in Pressure Cylinders segment as the combination expands its product offerings to retail and wholesale customers. As both companies share similar manufacturing operations and have considerable overlapping in distribution channels, it provides opportunities to improve the value proposition to customers.
Worthington’s shares have declined around 11.2% in the last three months, underperforming the Zacks categorized Metal Products-Procurement and Fabrication industry’s 4.7% fall.
Worthington reported net earnings of $35.9 million or 55 cents per share in third-quarter fiscal 2017 (ended Feb 28, 2017), up 17% year over year. However, the earnings missed the Zacks Consensus Estimate of 67 cents.
Revenues increased 8.7% year over year to $703.4 million, but trailed the Zacks Consensus Estimate of $716 million.
Revenues from Steel Processing segment increased 14% year over year to $478.2 million on the back of higher average selling price and volumes.
Net sales of Pressure Cylinders segment were down 1% year over year to $198.4 million owing to declines in oil & gas and industrial products businesses, partly offset by gains in the consumer products.
The company said that the performance of Steel Processing was commendable and the segment delivered year over year growth in the quarter. The Pressure Cylinders unit saw improved demand in camping and helium cylinders, offsetting the softness of oil & gas markets. The company also noted that its joint ventures have also contributed to steady earnings.
Worthington is seeing the benefits of its transformational initiatives across the company, including its cylinders business, and expects a strong finish to fiscal 2017.
Huntsman has expected long-term earnings growth rate of 7%.
ArcelorMittal has expected long-term earnings growth rate of 11.6%.
Chemours has expected long-term earnings growth rate of 15.5%.
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Worthington Industries Buys Amtrol, Expands Portfolio
Worthington Industries (WOR - Free Report) has purchased Amtrol, a leading manufacturer of water system tanks and pressure cylinders, for roughly $283 million. The acquisition combines the two leaders in the U.S. and European LP Gas business, adding well and water tank product lines to Worthington’s portfolio.
Amtrol is a leading producer and distributor of residential expansion and well water tanks, which are sold through large plumbing, heating, ventilation and air conditioning (PHVAC) retailers and wholesalers.
The company said that the addition of Amtrol in its portfolio strengthens its consumer products and industrial gas businesses and complements its refrigerant cylinder manufacturing capabilities. It also bodes well with the company’s core competencies in Pressure Cylinders segment as the combination expands its product offerings to retail and wholesale customers. As both companies share similar manufacturing operations and have considerable overlapping in distribution channels, it provides opportunities to improve the value proposition to customers.
Worthington’s shares have declined around 11.2% in the last three months, underperforming the Zacks categorized Metal Products-Procurement and Fabrication industry’s 4.7% fall.
Worthington reported net earnings of $35.9 million or 55 cents per share in third-quarter fiscal 2017 (ended Feb 28, 2017), up 17% year over year. However, the earnings missed the Zacks Consensus Estimate of 67 cents.
Revenues increased 8.7% year over year to $703.4 million, but trailed the Zacks Consensus Estimate of $716 million.
Revenues from Steel Processing segment increased 14% year over year to $478.2 million on the back of higher average selling price and volumes.
Net sales of Pressure Cylinders segment were down 1% year over year to $198.4 million owing to declines in oil & gas and industrial products businesses, partly offset by gains in the consumer products.
The company said that the performance of Steel Processing was commendable and the segment delivered year over year growth in the quarter. The Pressure Cylinders unit saw improved demand in camping and helium cylinders, offsetting the softness of oil & gas markets. The company also noted that its joint ventures have also contributed to steady earnings.
Worthington is seeing the benefits of its transformational initiatives across the company, including its cylinders business, and expects a strong finish to fiscal 2017.
Worthington Industries, Inc. Price and Consensus
Worthington Industries, Inc. Price and Consensus | Worthington Industries, Inc. Quote
Worthington currently carries a Zacks Rank #2 (Buy).
Stocks to Consider
Some top-ranked companies in the basic materials space include Huntsman Corporation (HUN - Free Report) , ArcelorMittal (MT - Free Report) and The Chemours Company (CC - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Huntsman has expected long-term earnings growth rate of 7%.
ArcelorMittal has expected long-term earnings growth rate of 11.6%.
Chemours has expected long-term earnings growth rate of 15.5%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>