| Type | Public (NYSE: WOR) |
|---|---|
| Founded | 1955 (Columbus, Ohio) |
| Headquarters | Columbus, Ohio, U.S. |
| Key people | John P McConnell, Chairman & CEO John H. McConnell, Founder George P. Stoe, President & COO Andy Rose, Vice President & CFO |
| Products | Steel |
| Employees | 6,300 |
| Website | www.worthingtonindustries.com |
Worthington Industries, Inc. (NYSE: WOR) is a diversified metal manufacturing company with annual sales of approximately $2.6 billion. The Columbus, Ohio based company is a steel processor and a manufacturer of metal products such as light gauge steel framing for commercial and residential construction; framing systems and stairs for mid-rise buildings; pressure cylinder products, such as propane, oxygen, and helium tanks, hand torches, camping cylinders, and scuba tanks; current and past model automotive service stampings; metal ceiling grid systems; steel pallets and racks; and laser welded blanks. Worthington employs approximately 6,300 people and operates 64 facilities in 11 countries. Worthington Industries has three primary business units (steel processing, metal framing and pressure cylinders) and several joint ventures.[1]
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In 1955, a young steel salesman named John H. McConnell saw an opportunity for custom processed steel. He purchased his first load of steel by borrowing $600 against his 1952 Oldsmobile and founded Worthington Industries. First year earnings were $11,000 generated from sales of $342,000.
From there, Worthington Industries expanded and added processing facilities throughout the late 1950s and 1960s. Profit sharing was instituted in 1966 and at the same time, all production workers were put on a salary rather than hourly schedule. In 1968, the company made its first public stock offering of 150,000 shares at $7.50 per share.
In 1971, Worthington Industries purchased a small cylinders business, the foundation of what is today Worthington Cylinders, one of the company's core businesses. Just a few years later, in 1976, Worthington Industries celebrated $100 million in sales.
The company continued to expand and grow throughout the 1980s. The following decade, in 1996, after working with the company for more than 20 years, John P. McConnell succeeded his father as Chairman and CEO. That same year, Worthington Industries acquired Dietrich Industries, a metal framing manufacturer serving the construction industry.
A few years later, on April 19, 2000, Worthington Industries moved to the New York Stock Exchange. In 2002, after 34 years with the company, founder and chairman emeritus John H. McConnell stepped down as a member of the board of directors. And in 2005, Worthington Industries celebrated 50 years of business.
Worthington Industries continued to grow into the new millennium. In 2006, the company entered the stainless steel market when it acquired Precision Specialty Metals in Los Angeles, California. A year later, Worthington Steel expanded internationally, forming a steel processing joint venture in Mexico with Serviacero Planos. Worthington Serviacero has three facilities in northern and central Mexico.
The following year, Worthington Industries lost its founder. On April 25, 2008, John H. McConnell, business leader and philanthropist, died. At the time of his death, the business he started back in 1955 with his first load of steel had become a $3 billion company, employing 8,000 people in 69 facilities in 11 countries.[1]
Worthington Industries has been recognized four times by Fortune magazine as one of the "100 Best Companies to Work for in America". In 2006, the "100 Best Fortune" article on Worthington Industries stated, "The steel processor's culture is based on trust and great benefits. Factory workers get a piece of the monthly profit sharing, which augments monthly salaries 40% to 100%. Join the wellness program, and your health premiums are covered."[8] Fortune also named Worthington one of the "Most Admired Companies in the Metals Industry".[9]
Worthington Industries has been on Money magazine's list of "30 Best Performing Stocks of the Past 30 Years",[10] and Forbes magazine has recognized Worthington Industries as one of "America's Best Big Companies".[11]
Worthington Industries operates under a corporate philosophy centered around Worthington's Golden Rule: "We treat our customers, employees, investors, and suppliers as we would like to be treated." This business philosophy, which started with John H. McConnell, has been studied at graduate business schools including Harvard University.[12]. Below is a copy of the company's philosophy[1]:
Worthington Industries Philosophy
- Earnings
- The first corporate goal for Worthington Industries is to earn money for its shareholders and increase the value of their investment.
- We believe that the best measurement of the accomplishment of our goal is consistent growth in earnings per share.
- Our Golden Rule
- We treat our customers, employees, investors and suppliers as we would like to be treated.
- People
- We are dedicated to the belief that people are our most important asset.
- We believe people respond to recognition, opportunity to grow and fair compensation.
- We believe that compensation should be directly related to job performance and therefore use incentives, profit sharing or otherwise, in every possible situation.
- From employees, we expect an honest day's work for an honest day's pay.
- We believe in the philosophy of continued employment for all Worthington people.
- In filling job openings every effort is expended to find candidates within Worthington, its divisions or subsidiaries.
- Customers
- Without the customer and their need for our products and services we have nothing.
- We will exert every effort to see that the customer's quality and service requirements are met.
- Once a commitment is made to a customer, every effort is made to fulfill that obligation.
- Suppliers
- We cannot operate profitably without those who supply the quality materials we need.
- We ask that suppliers be competitive in the marketplace with regard to quality, pricing, delivery and volume purchased.
- We are a loyal customer to suppliers who meet our quality and service requirements through all market conditions.
- Organization
- We believe in a divisionalized organizational structure with responsibility for performance resting with the head of each operation.
- All managers are given the operating latitude and authority to accomplish their responsibilities within our corporate goals and objectives.
- In keeping with this philosophy, we do not create excessive corporate procedures. If procedures are necessary within a particular company operation, that manager creates them.
- We believe in a small corporate staff and support group to service the needs of our shareholders and operating units as requested.
- Communication
- We communicate through every possible channel with our customers, employees, shareholders, suppliers and financial community.
- Citizenship
- Worthington Industries practices good citizenship at all levels. We conduct our business in a professional and ethical manner.
- We encourage all our people to actively participate in community affairs.
- We support worthwhile community causes.