Worthington Industries
Encyclopedia
Worthington Industries, Inc. 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.
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.
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." Fortune also named Worthington one of the "Most Admired Companies in the Metals Industry".
Worthington Industries has been on Money magazine's
list of "30 Best Performing Stocks of the Past 30 Years", and Forbes magazine
has recognized Worthington Industries as one of "America's Best Big Companies".
.. Below is a copy of the company's philosophy:
Columbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
based company is a steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
processor and a manufacturer of metal products such as light gauge steel framing
Steel frame
Steel frame usually refers to a building technique with a "skeleton frame" of vertical steel columns and horizontal -beams, constructed in a rectangular grid to support the floors, roof and walls of a building which are all attached to the frame...
for commercial and residential construction; framing systems and stairs for mid-rise buildings; pressure cylinder
Pressure vessel
A pressure vessel is a closed container designed to hold gases or liquids at a pressure substantially different from the ambient pressure.The pressure differential is dangerous and many fatal accidents have occurred in the history of their development and operation. Consequently, their design,...
products, such as propane
Propane
Propane is a three-carbon alkane with the molecular formula , normally a gas, but compressible to a transportable liquid. A by-product of natural gas processing and petroleum refining, it is commonly used as a fuel for engines, oxy-gas torches, barbecues, portable stoves, and residential central...
, oxygen
Oxygen
Oxygen is the element with atomic number 8 and represented by the symbol O. Its name derives from the Greek roots ὀξύς and -γενής , because at the time of naming, it was mistakenly thought that all acids required oxygen in their composition...
, and helium
Helium
Helium is the chemical element with atomic number 2 and an atomic weight of 4.002602, which is represented by the symbol He. It is a colorless, odorless, tasteless, non-toxic, inert, monatomic gas that heads the noble gas group in the periodic table...
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.
Divisions
- Worthington Steel is America's largest independent processor of flat-rolled steel. The company takes steel from steel producers and processes it for customers in a variety of industries including automotive, lawn and garden, construction, hardware, office furniture, electrical control, leisure and recreation, appliance, agriculture and HVAC.
- Dietrich Metal Framing is the largest manufacturer of steel framing materials in America. The company produces steel studs, floor joistsJoistA joist, in architecture and engineering, is one of the horizontal supporting members that run from wall to wall, wall to beam, or beam to beam to support a ceiling, roof, or floor. It may be made of wood, steel, or concrete. Typically, a beam is bigger than, and is thus distinguished from, a joist...
, roof trussesTrussIn architecture and structural engineering, a truss is a structure comprising one or more triangular units constructed with straight members whose ends are connected at joints referred to as nodes. External forces and reactions to those forces are considered to act only at the nodes and result in...
and other metal accessories for commercial and residential construction. - Worthington Cylinders is a global supplier of pressure cylinders. The company manufactures cylinders used in multiple capacities including liquefied petroleum gas cylinders used for gas grills and camping cylinders; refrigerant cylinders used for air conditioning systems; specialty high-pressure cylinders such as oxygen tanks used for diving; and consumer products like BalloonTime helium balloon kits.
- Worthington Steelpac Systems produces customized crateCrateA crate is a large shipping container, often made of wood, typically used to transport large, heavy or awkward items. A crate has a self-supporting structure, with or without sheathing. For a wooden container to be a crate, all six of its sides must be put in place to result in the rated strength...
s, steel palletsPalletA pallet , sometimes called a skid, is a flat transport structure that supports goods in a stable fashion while being lifted by a forklift, pallet jack, front loader or other jacking device. A pallet is the structural foundation of a unit load which allows handling and storage efficiencies...
and racks used for shipping products. Steelpac products are used for shipping in several industries and applications such as motorcycles, lawn and garden equipment and jet skis. - Worthington Integrated Building Systems is a full-service framing construction company that provides design and framing for residential and mid-rise construction. Examples include framing for hotels, assisted living facilities, multi-family housing, military housing and student dormatories.
- Gerstenslager manufactures past model body panels for several major automakers including General MotorsGeneral MotorsGeneral Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
, Ford, ChryslerChryslerChrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
, MitsubishiMitsubishiThe Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
, HondaHondais a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...
and Nissan. The company provides stampingStamping (metalworking)Stamping includes a variety of sheet-metal forming manufacturing processes, such as punching using a machine press or stamping press, blanking, embossing, bending, flanging, and coining. This could be a single stage operation where every stroke of the press produce the desired form on the sheet...
, blankingBlanking (metalworking)Blanking and piercing are shearing processes in which a punch and die are used to modify webs. The tooling and processes are the same between the two, only the terminology is different: in blanking the punched out piece is used and called a blank; in piercing the punched out piece is...
, assembly, painting, packaging, warehousing and distribution services.
Joint ventures
- Worthington Armstrong Venture (WAVE) is a joint venture between Worthington Industries and Armstrong World IndustriesArmstrong World IndustriesArmstrong World Industries, Inc. is an international designer and manufacturer of floors, ceilings and cabinets. Based in Lancaster, Pennsylvania, Armstrong operates 40 plants in 10 countries and has approximately 12,300 employees worldwide. In 2006, Armstrong’s net sales were $3.42 billion, with...
that produces suspended metal ceiling grids. - Tailor Welded Blanks (TWB Company), a joint venture with ThyssenKruppThyssenKruppThyssenKrupp AG is a German multinational conglomerate corporation headquartered in Duisburg Essen, Germany. The corporation consists of 670 companies worldwide. While ThyssenKrupp is one of the world's largest steel producers, the company also provides components and systems for the automotive...
, produces laser welded blanks for the automotive industry. - Worthington Specialty Processing (WSP) is Worthington's first joint venture. Established in 1986, WSP is a partnership with U.S. SteelU.S. SteelThe United States Steel Corporation , more commonly known as U.S. Steel, is an integrated steel producer with major production operations in the United States, Canada, and Central Europe. The company is the world's tenth largest steel producer ranked by sales...
. The company toll processes wide sheet steel for the automotive industry. - Spartan Steel Coating is a joint venture between Severstal North AmericaSeverstal North AmericaSeverstal North America is a subsidiary of the Russian Severstal Group which operates an integrated steel mill Severstal Dearborn located at the Rouge Complex in Dearborn, Michigan. The Severstal Dearborn facility was formerly known as Rouge Steel....
and Worthington. Spartan produces light gauge hot-dipped galvanized steelGalvanizationGalvanization is the process of applying a protective zinc coating to steel or iron, in order to prevent rusting. The term is derived from the name of Italian scientist Luigi Galvani....
mostly used for automotive applications. - Serviacero Worthington is a joint venture with Serviacero Planos. It operates two steel service centers in central MexicoMexicoThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
. - LEFCO Worthington, a joint venture between Steelpac and LEFCO Industries, manufactures engineered wood crates, specialty pallets and steel racking systems.
History
In 1955, a young steel salesman named John H. McConnellJohn H. McConnell
John Henderson McConnell was the founder of Worthington Industries, which manufactures processed steel products, pressure cylinders, and metal framing. He was the founder, majority owner, chairman, and governor of the Columbus Blue Jackets NHL team...
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
Profit sharing
Profit sharing, when used as a special term, refers to various incentive plans introduced by businesses that provide direct or indirect payments to employees that depend on company's profitability in addition to employees' regular salary and bonuses...
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
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. 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.
Awards and achievements
Worthington Industries has been recognized four times by Fortune magazineFortune (magazine)
Fortune is a global business magazine published by Time Inc. Founded by Henry Luce in 1930, the publishing business, consisting of Time, Life, Fortune, and Sports Illustrated, grew to become Time Warner. In turn, AOL grew as it acquired Time Warner in 2000 when Time Warner was the world's largest...
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." Fortune also named Worthington one of the "Most Admired Companies in the Metals Industry".
Worthington Industries has been on Money magazine's
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
list of "30 Best Performing Stocks of the Past 30 Years", and Forbes magazine
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
has recognized Worthington Industries as one of "America's Best Big Companies".
Philosophy
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 UniversityHarvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
.. Below is a copy of the company's philosophy: