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Friday, April 1, 2011

Worthington Reports Third Quarter Fiscal 2011 Results

Worthington Industries, Inc. (NYSE: WOR) today reported net sales of $569.4 million and net earnings of $26.3 million, or $0.35 per share, for its fiscal 2011 third quarter ended February 28, 2011. In last year’s third quarter, the Company reported net sales of $451.1 million and a net loss of $17.7 million, or $0.22 per share, which included $0.28 per share in impairment and restructuring charges.

Metal Framing’s net sales of $81.4 million were up 21%, or $13.9 million, from the prior year quarter as higher selling prices, driven by the cost of steel, increased net sales by $12.5 million. Volumes were up 1%, increasing net sales by $1.4 million. The impact of higher average selling prices increased margins by $8.7 million while lower manufacturing expenses improved margins by $1.8 million. The current quarter operating income was $2.7 million, compared to an operating loss of $9.1 million in the prior year quarter. As a result of the transaction described in the Highlights section below, operations of the Metal Framing segment have essentially been contributed into a new joint venture effective March 1, 2011. A 25% interest was retained in this joint venture, which will be unconsolidated, with its results reported as equity in net income of unconsolidated affiliates in the Company’s consolidated statements of earnings.

•On February 22, 2011, the Company reached an agreement in principle with Marubeni-Itochu Steel America Inc. (MISA) to combine Dietrich Metal Framing and ClarkWestern Building Systems in a newly-formed joint venture. This agreement closed effective March 1, 2011. In the transaction, Worthington received a 25% interest in the new joint venture, ClarkDietrich Building Systems LLC, as well as the assets of three MISA Metals Inc. steel processing locations. The joint venture will be unconsolidated and the steel processing assets and locations will be reported under the Steel Processing segment.

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