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Worthington Industries: Joint Ventures Vital to Bottom Line


Apr. 7 2015, Updated 8:56 p.m. ET

Worthington joint ventures

Previously in this series, we learned how Worthington Industries (WOR) has grown by acquiring other companies. These acquisitions have helped it increase both its revenues and profits. On top of acquiring full stakes in some companies, Worthington has formed several joint ventures. In this part, we’ll look at some of the major ones.

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Major joint ventures

WAVE (Worthington Armstrong Venture) and ClarkDietrich are Worthington’s two biggest joint ventures. WAVE was created in 1993, and Worthington has a 50% stake in this joint venture. WAVE is a global leader in suspension ceiling systems. WAVE products are mainly sold under the Armstrong brand. A major part of WAVE’s sales come from the renovation market.

Worthington has a 25% stake in ClarkDietrich. The principal stake is held by its joint venture partner, ClarkWestern Building Systems. ClarkDietrich is a leading manufacturer of light gauging steel products in the United States. The joint venture, which has 13 manufacturing facilities, was created in 2011.


ArtiFlex Manufacturing is Worthington’s 50% joint venture with International Tooling Solutions. It provides engineering, stamping, and assembly solutions to the automobile industry. ArtiFlex has six manufacturing facilities in the United States.

As noted previously, the automobile sector is Worthington’s biggest customer base. ArcelorMittal (MT) and Allegheny Technologies (ATI) are other leading suppliers to the automobile industry. ATI currently forms 3.9% of the SPDR S&P Metals and Mining ETF (XME). US Steel (X) forms 3.2% of XME.

Worthington also has a 50% stake in Serviacaro, a steel processor in Mexico. Serviacaro has three manufacturing plants in Mexico.

Income from these joint ventures make up a significant portion of Worthington’s income. We’ll discuss how significant, in our next part.


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