Worthington Industries Inc
Worthington Industries, Inc., an Ohio corporation, is headquartered in Columbus,
Ohio. Founded in 1955, Worthington is primarily a diversified metal processing
company, focused on value-added steel processing and manufactured metal products
such as metal framing, pressure cylinders, automotive part stampings and, through
joint ventures, metal ceiling grid systems and laser welded blanks. Worthington
currently operates 44 manufacturing facilities worldwide and holds equity positions
in eight joint ventures, which operate an additional 17 manufacturing facilities
worldwide.
We report our operations in three principal business segments: Processed Steel
Products, Metal Framing and Pressure Cylinders. The Processed Steel Products
segment includes The Worthington Steel Company business unit (“Worthington Steel”)
and The Gerstenslager Company business unit (“Gerstenslager”). The Metal Framing
segment is comprised of the Dietrich Industries, Inc. business unit (“Dietrich”).
The Pressure Cylinders segment consists of the Worthington Cylinder Corporation
business unit (“Worthington Cylinders”).
We purchase steel in large quantities at regular intervals from major primary
producers, both domestic and foreign. In our Processed Steel Products segment,
we primarily purchase and process steel based on specific customer orders and
do not typically purchase steel for inventory. Our Metal Framing and Pressure
Cylinders segments purchase steel to meet our production schedules. Our raw
materials are purchased in the open market on a negotiated spot market basis
at prevailing market prices, we also enter into long-term contracts, some of
which have fixed pricing.
We employ a staff of engineers and other technical personnel and maintain fully
equipped modern laboratories to support our operations. These facilities enable
us to verify, analyze and document the physical, chemical, metallurgical and
mechanical properties of our raw materials and products. Technical service personnel
also work in conjunction with our sales force to determine the types of flat-rolled
steel required for our customers’ particular needs. Additionally, technical
service personnel design and engineer metal framing structures and provide sealed
shop drawings to the building construction markets.
To provide these services, we maintain a continuing program of developmental
engineering with respect to the characteristics and performance of our products
under varying conditions. Laboratory facilities also perform metallurgical and
chemical testing as dictated by the regulations of the U.S. Department of Transportation,
Transport Canada and other associated agencies, along with International Organization
for Standardization (ISO), and customer requirements. All design work complies
with current local and national building code requirements. Our ICBO (International
Conference of Building Officials) accredited product-testing laboratory supports
these design efforts.
The Processed Steel Products industry is fragmented and highly competitive.
We compete with many other independent intermediate processors and, with respect
to automotive stamping, captive processors owned by the automotive companies,
independent tier-one suppliers of current model components and a number of smaller
competitors. We compete primarily on the basis of product quality, our ability
to meet delivery requirements and price. Our technical service and support for
material testing and customer specific applications enhance the quality of our
products. However, we have not quantified the extent to which our technical
service capability has improved our competitive position.