Investment in Unconsolidated Affiliate

6 Months Ended

Nov. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Note 3 – Investment in Unconsolidated Affiliate

The Company owns a noncontrolling interest (50%) in one unconsolidated joint venture, Serviacero Worthington. The Company accounts for its investment in Serviacero Worthington using the equity method of accounting. Serviacero Worthington provides steel processing services, such as pickling, blanking, slitting, multi-blanking and cutting-to-length, to customers in a variety of industries including automotive, appliance and heavy equipment.

The Company received distributions from Serviacero Worthington totaling $5.0 million and $0 during the six months ended November 30, 2024 and November 30, 2023, respectively.

The following tables summarize certain financial information of Serviacero Worthington as of the dates, and for the periods, presented:


	November 30,		May 31,
(In millions)	2024		2024
Cash and cash equivalents	$	20.8	$	5.7
Other current assets		249.3		274.7
Noncurrent assets		58.4		58.3
Total assets	$	328.5	$	338.7

Current liabilities		53.7		64.7
Other noncurrent liabilities		5.1		5.2
Equity		269.7		268.8
Total liabilities and equity	$	328.5	$	338.7


	Three Months Ended					Six Months Ended
	November 30,			November 30,		November 30,		November 30,
(In millions)	2024			2023		2024		2023
Net sales	$	138.7		$	163.4	$	287.2	$	315.3
Gross margin		9.6			18.6		25.2		39.9
Operating income		5.5			15.2		17.2		33.1
Depreciation and amortization		1.2			1.1		2.3		2.1
Interest expense		—			—		—		—
Income tax expense		5.8			6.3		12.6		7.0
Net earnings (loss)		(1.7	)		7.6		0.9		25.5

The following table presents the net earnings of Serviacero Worthington attributable to the Company for the periods presented:


	Three Months Ended					Six Months Ended
	November 30,			November 30,		November 30,		November 30,
(In millions)	2024			2023		2024		2023
Equity in net income (loss) of unconsolidated affiliate	$	(0.9	)	$	3.8	$	0.4	$	12.8