Worthington Industries reported Wednesday a fiscal fourth-quarter loss as a steep drop in steel sales, inventory writedowns and restructuring costs carved into the bottom line.
For the three months ended May 31, Worthington /quotes/comstock/13*!wor/quotes/nls/wor (WOR 13.63, +0.60, +4.57%) said it lost $13.7 million, or 17 cents a share. The company had net earnings of $53.9 million, or 68 cents a share, a year ago.
Revenue for the quarter fell 46% to $471.6 million, the result of a sharply lower demand for processed steel, the Columbus, Ohio, company's core business. The crisis in the automotive industry, which included the bankruptcies of General Motors Corp. and Chrysler LLC, was a major factor behind slumping steel demand.
Much of the loss, the equivalent of 15 cents a share, was tied to a $6.3 million pre-tax inventory writedown and $6 million in restructuring charges.
Excluding these and other one-time items, the company posted a loss of 2 cents a share, less than the 3-cent a share loss analysts surveyed by FactSet Research had predicted, prompting shares to rally nearly 7% to $12.86 at the open.
I have to wonder what impact these kind of losses can have on the hockey team, which of course is propped up by Worthington Industries.
It's been extremely quiet on the arena lease issue since the initial news broke a few weeks ago. Once the "sin-tax" proposal was shelved I couldn't help but think that another "sin".... gambling.... could be the white knight that rides in and saves the day.
Then news of the following broke recently:
Ted Strickland will authorize racetrack slots by executive order and lawmakers will provide him legal protection under a stalemate-ending budget compromise struck Friday.
The order is the linchpin of a compromise with Senate Republicans, who have in turn agreed to include language in the $54 billion, two-year state budget that clarifies the state gambling law allows the lottery to include slots-like video lottery terminals.
I know this is primarily being used to balance the budget but my first thought was if the Jackets could get any piece of this to assist with their arena lease issue? Certainly doesn't look that way at the moment.
Something has to be stewing though.
Have the Jackets gotten any traction with the local politicians?
Is plan B in the works behind the scenes?
Is this just the calm before storm before the Jackets drop the re-locate hammer?
Or is this a calculated move to keep this topic buried for a bit after all the bad press that was generated earlier this offseason?
It's been a great past couple of weeks for the hockey department with the long term extension of 61 and also with the pickups of Pahlsson and Garon. That certainly stopped the bad PR bleeding.
Although this issue may be out of the hearts/minds of fans and politicians for the moment you can bet it will start generating headlines again - hopefully of the positive variety. I would like nothing better than to focus on red lines and blue lines rather than bottom lines.
Remember to keep on your county commissioners Jacket fans (contact info on right side of page) to make sure this issue doesn't sit on the backburner for long.
Of course if I get any updated information I'll certainly pass that info along.
Monday, July 20, 2009
Labels: nationwide arena lease issue