Worthington Industries, Inc. WOR declared that its Alternative Fuels business has inked a multi-year contract with Teijin Engineering for supplying Type 3 composite hydrogen cylinders to a major Japanese automotive OEM. These hydrogen cylinders will be used on a new hydrogen fuel cell vehicle. Under the agreement, Worthington will supply cylinders for automobiles in the Japanese market in early 2016 and later in the U.S.
Wayne Powers, general manager of Worthington’s Alternative Fuels business stated that the company is the pioneer of 10,000 PSI, Type 3 composite cylinders with UN-GRT heavy-duty testing approvals. He added that this agreement has a term of five years during which Worthington will supply two cylinders each to around 5,000 vehicles. Hence, manufacturing capabilities need to be increased at the company’s Pomona, CA facility.
Worthington, which has been working with Teijin Engineering and operating in Japan for more than 20 years, is looking forward to the latest project.
Worthington reported net sales of $758.1 million for first-quarter fiscal 2016 (ended Aug 31, 2015), down 12% year over year due to lower volume in all business segments and lower average selling prices in Steel Processing. Net income for the quarter was $31.4 million, or 48 cents per share. The company is optimistic about its performance in the second quarter amid a challenging environment.
Worthington currently carries a Zacks Rank #2 (Buy).
Other companies worth considering in the basic materials sector are Coeur Mining, Inc. CDE Grupo Simec S.A.B. de C.V. SIM and Taseko Mines Ltd. TGB, all carrying a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment