12:15AM New York – Worthington revenue rises as it passes along higher prices to customers.

Worthington Industries, Inc., a diversified metal processing company reported revenue for the third quarter ending in February 2008 increased 7% to $725.7 million from $677.3 million in same quarter of last year.

Net income in the quarter ended increased to $18.3 million, or 23 cents per share, from $5.5 million, or 6 cents per share a year ago and from 18 cents per share or $14.7 million in the second quarter of 2007.

For the nine-month period, net sales were $2,198.3 million, 1% higher than $2,185.2 million for the same period last year. Net earnings were $53.2 million, or $0.65 per diluted share, compared to $75.7 million, or $0.87 per diluted share, for the same period last year.

Year-to-date results were negatively impacted by $9.9 million in pre-tax restructuring charges, or $0.08 per share, related to early retirement, severance and plant closures.

The company eliminated $12 million in cost so far this year and with the additional cost cuts it hopes to achieve annual savings of $39 million beginning 2010.

Segment review

In the steel processing segment, quarterly net sales rose 8%, or $26.1 million, to $350.4 million from $324.3 million in the comparable quarter of fiscal 2007. Volumes rose 9% partially offset by lower average pricing (down 1%) and from the aggressive sales campaign.

In the metal framing segment, net sales increased 5%, or $8.9 million, to $182.8 million from $173.9 million in the comparable quarter of 2007, on volumes increase of 5%. While the average selling prices were comparable to the prior year period but increased 4% from the second quarter.

Selling prices are steadily rising along with rapidly rising steel raw material costs. Prices were increased in January and February and additional monthly increases have been announced through May.

In the pressure cylinders segment, net sales increased 3%, or $4.6 million, to $138.3 million from $133.7 million in the comparable quarter of fiscal 2007.

Worthington’s joint ventures added to third quarter results as equity income from the nine unconsolidated affiliates rose 16% totaling $15.7 million, compared to $13.5 million in the year ago quarter.

Stock buyback and dividend

During the quarter, 2,271,300 shares were repurchased. The purchase of 1,370,800 was completed under 10 million share authorization announced on June 13, 2005. The remaining 900,500 were purchased under a 10 million share authorization announced on September 26, 2007.

During the third quarter, $13.9 million was paid out in a regular quarterly dividend. At quarter end, the dividend yielded a 3.9% annualized return. During the third quarter, the company repurchased 2.3 million common shares, reducing total outstanding shares to 79.3 million at quarter end.

On February 19, 2008, the board of directors declared a quarterly cash dividend of $0.17 per share payable March 29, 2008, to shareholders of record on March 15, 2008.

Worthington (WOR: chart) rose 84 cents or 5.2% to $16.96.