This summary is based on the fourth quarter fiscal 2008 earnings call conducted by Worthington Industries. (WOR: chart) on June 26, 2008.

Management:

- Director of Investor Relations: Allison Sanders
- Chairman and CEO: John P. McConnell
- President, Chief Financial Officer, Director: John S. Christie
- Chief Operating Officer, Executive Vice President: George P. Stoe
- Controller: Richard Welch

Key Investors Issues

- Earnings rose 41% to $53.9 million or 68 cents a share.
- Sales increased 10% to $869 million from $787 million in the prior year.
- The firm acquired the assets of Sharon Stairs.

Full Year Highlights:

- Net earnings dropped 5.3% from $113.9 million or $1.32 a share to $107 million or $1.32 a share in 2007 despite sales increasing 3.2% to $3 billion.
- Cash provided by operating activities was $180.5 million compared to $180.4 million for fiscal 2007.
- During the year, the firm repurchased 6,451,500 shares, reducing total outstanding shares to 79.3 million at year end.

Fourth Quarter Highlights

The firm reported earnings of $53.9 million or 68 cents a share, up 41% compared to $38.2 million or 45 cents a share in the prior year due to revenue growth on rising prices.

- Sales of $869 million were up 10% from the $787 million for the same period last year, primarily due to higher selling prices as the firm has been raising prices to keep pace with the rapidly increasing prices of steel.
- The gross profit margin rose from 12.7% to 15.1% as a result of a wider spread between raw material costs and selling prices in the Steel Processing and Metal Framing segments. - A good deal of the spread improvement in these two segments is due to the temporary benefit of inventory holding gains, which results in selling lower priced inventory into a rising price environment.
- SG&A expense was up $12 million from the year ago quarter, with much of the increase related to variable compensation expense, which moves in conjunction with bottom line performance.

Higher compensation expense, as well as increases of professional fees offset the $6 million realized in cost reduction initiatives.

- Operating income rose from $42 million to $61 million excluding the impact of restructuring charges and does not include equity income from the nine unconsolidated joint ventures, the most significant which WAVE had record quarterly earnings.
- Equity income rose 31% to $22 million from $17 million last year due to WAVE’s record performance, the addition of Mexican steel processing joint venture and improved results at TWB.
- As a group, the nine joint ventures generated $214 million in sales during the fourth quarter and paid $17 million in dividends.
- Interest expense increased $1 million due to higher short-term borrowings.

Income expense was due to higher earnings and a change in the mix of earnings that include more domestic and less foreign earnings, which are taxed at a lower rate.

- Total debt was $480 million, which includes $100 million outstanding under the accounts receivable securitization facility.
- Short-term borrowings increased $204 million to fund $126 million in share repurchases and to support higher working capital requirements.

Total debt to capitalization ratio was 35.2% including the receivable securitization facility.

- Capital spending, excluding acquisitions was $10 million compared to depreciation of $16 million, with the lower capital spending versus depreciation mainly due to timing of projects.
- On June 2, 2008, the firm acquired the assets of Sharon Stairs, a designer and manufacturer of steel egress stair systems for the commercial construction markets.
- The board of directors declared a quarterly cash dividend of 17 cents per share payable June 29, 2008, to shareholders of record on June 15, 2008.

Segment Highlights:

- Steel processing’s sales rose 14% to $413 million from $360 million in last year’s fourth quarter as average selling prices rose 18% compared to a year ago.
- Overall direct volumes were down 3%, but sales where the firm owns the material were up 6%, with increase in direct sales volume reflecting a strategic sales effort to generate new business while the decrease in pulling sales corresponded with the lower automotive production.
- Operating income rose to $26 million, from $15 million last year, and the operating margin rose to 6.2% from 4.1%.

- Metal framing which represented 26% of revenue had sales of $226 million, up 15% from the prior year sales of $196 million, driven by higher pricing as volumes were relatively flat.
- The spread between average selling prices and material costs rose significantly compared to the year ago quarter due to the higher selling prices.
- As a result operating income was $17 million, excluding restructuring charges, compared to a loss of $0.5 million in 2007.
- Going forward, the firm anticipates that metal framing will realize additional benefits from the plant consolidations and cost reductions.

- Pressure Cylinder which represented 20% of total company revenues, had sales which were essentially flat as strength in North America was offset by slight declines in the European market.
- Volumes in North America were up 7%, driven by strength in the small 14 and 16-ounce cylinders produced in the Wisconsin facility.
- Volumes in Europe decreased 12% when compared to the exceptionally strong prior year period.
- Operating income was down from a record $26 million last year.

Operating Highlights: