Middletown Forum : Worthington Steel to Cut 300 Jobs

Worthington Announces Workforce Reductions and Closings
300 Jobs Cut; Three Plants Closing

COLUMBUS, Ohio, December 5, 2008 - Worthington Industries (NYSE: WOR) today
announced actions the company is taking to reduce the workforce by approximately 300
employees in the steel processing and metal framing business segments, approximately 4% of
the total workforce. These actions are in addition to the previously announced (October 23)
closings and job cuts.
Dietrich Metal Framing continues to be heavily impacted by the steep drop off in construction
that has resulted from the global financial crisis and, along with steel processing, has seen a
dramatic decline in pricing and demand. To mitigate the negative impacts of the current
business environment, Dietrich will close its Lunenburg, Mass., facility by February 28, 2009,
and suspend operations at two facilities: Miami, Fla., by the end of February, and Phoenix,
Ariz., by the end of January. Dietrich intends to re-open the Florida and Arizona facilities if
business returns, but in the meantime, the McDonough, Ga., facility will service the Florida
market and the Colton, Calif., facility will provide product to the Arizona market.
Massachusetts customers will be served by the Boonton, N.J., operation. The total number of
employees in the metal framing segment impacted by the closings is 125, approximately 9% of
the workforce.
The steel processing segment will reduce its workforce across all locations by approximately
12% or 186 employees. The job cuts include both hourly and salaried employees. The
company is also reducing work schedules to better align with the lower market demand and
employees are being asked to take unpaid time off.
It is estimated that these workforce reductions and plant closings will result in annual savings
of approximately $17 million, with restructuring charges of approximately $5 million primarily
due to severance costs and asset write-downs. Additionally, there should be a significant
reduction in overall compensation expense as profit sharing and bonuses are expected to
decline substantially as earnings are negatively impacted by the depressed market conditions.
Worthingtons profit sharing and bonuses have long made up a far greater percentage of
compensation than in most companies. The company continues to be focused on reducing all
costs; accelerating Transformation initiatives; selling non-core assets; and taking necessary
steps to reduce cash requirements and maintain liquidity.
These are unprecedented times for this industry and our company, said John P. McConnell,
Chairman and CEO of Worthington Industries. We are reluctantly taking these actions, as
they are needed to reduce operating costs in response to market conditions and the
extraordinary economic environment. The Transformation effort that we began nine months
ago continues to help us drive improvements in our operations, sales and sourcing even in this
depressed business cycle, and positions us for success when demand returns. McConnell
added, While steel processing and metal framing have been severely impacted by
deterioration in the automotive and construction markets, pressure cylinders has been less
affected and continues to perform well.
Worthington Industries is a leading diversified metal processing company with annual sales of
approximately $3 billion. The Columbus, Ohio, based company is North Americas premier
value-added steel processor and a leader in manufactured metal products such as metal
framing, pressure cylinders, automotive past model service stampings, metal ceiling grid
systems and laser welded blanks. Worthington employs approximately 7,500 people and
operates 68 manufacturing facilities in 10 countries.
Founded in 1955, the company operates under a long-standing corporate philosophy rooted in
the golden rule, with earning money for its shareholders as the first corporate goal. This
philosophy, an unwavering commitment to the customer, and one of the strongest
employee/employer partnerships in American industry serve as the companys foundation.
Safe Harbor Statement
The company wishes to take advantage of the Safe Harbor provisions included in the Private
Securities Litigation Reform Act of 1995 (the Act). Statements by the company relating to
projected timing, results, cost savings, costs and charges, expenditures, impacts and benefits
from Transformation efforts, consolidations, transition plans, plant closings, cost reduction
efforts, layoffs and other workforce reductions, or other new initiatives; expected cost savings,
profitability, balance sheet strength or financial strength; future or expected growth, growth
opportunities, performance, sales, results, earnings, profit sharing or bonuses; projected
capacity and working capital needs; pricing trends for raw materials and finished goods, and
the impact of pricing changes; anticipated capital expenditures and asset sales; expectations
for company and customer inventories, jobs and orders; expectations for the economy and
markets; expectations for improvements in efficiencies or the supply chain; expectations for
improving margins and increasing shareholder value; and other non-historical matters
constitute forward-looking statements within the meaning of the Act.
Because they are based on beliefs, estimates and assumptions, forward-looking statements
are inherently subject to risks and uncertainties that could cause actual results to differ
materially from those projected. Any number of factors could affect actual results, including,
without limitation: the effect of national, regional and worldwide economic conditions generally
and within major product markets, including a prolonged or substantial economic downturn;
product demand and pricing; changes in product mix, product substitution and market
acceptance of the companys products; fluctuations in pricing, quality or availability of raw
materials (particularly steel), supplies, transportation, utilities and other items required by
operations; effects of facility closures and the consolidation of operations; the effect of
consolidation and other changes within the steel, automotive, construction and related
industries; failure to maintain appropriate levels of inventories; the ability to realize targeted
expense reductions such as head count reductions, facility closures and other expense
reductions; the ability to realize other cost savings and operational efficiencies and
improvements on a timely basis; the overall success of, and the ability to integrate, newlyacquired
businesses and achieve synergies therefrom; capacity levels and efficiencies within
facilities and within the industry as a whole; financial difficulties (including bankruptcy filings) of
customers, suppliers, joint venture partners and others with whom the company does
business; the effect of disruption in business of suppliers, customers, facilities and shipping
operations due to adverse weather, casualty events, equipment breakdowns, acts of war or
terrorist activities or other causes; changes in customer inventories, spending patterns, product
choices, and supplier choices; risks associated with doing business internationally, including
economic, political and social instability, and foreign currency exposure; the ability to improve
and maintain processes and business practices to keep pace with the economic, competitive
and technological environment; adverse claims experience with respect to workers
compensation, product recalls or liability, casualty events or other matters; deviation of actual
results from estimates and/or assumptions used by the company in the application of its
significant accounting policies; level of imports and import prices in the companys markets; the
impact of judicial rulings and governmental regulations, both in the United States and abroad;
and other risks described from time to time in the companys filings with the United States
Securities and Exchange Commission.