Worthington Enterprises urges compliance with DOT safety advisory on foreign-manufactured pressure cylinders to ensure consumer safety.
Quiver AI Summary
Worthington Enterprises Inc. is urging stakeholders in the pressure cylinder market to heed a safety advisory issued by the U.S. Department of Transportation concerning unsafe cylinders primarily imported from non-U.S. manufacturers. As the only American producer of various steel cylinders used for critical applications, Worthington highlights that many cylinders sold by major retailers lack proper safety certification and compliance with DOT or UN standards, posing significant safety risks. CEO Joe Hayek expressed the company's commitment to maintaining high safety standards and cooperation with the government to improve oversight, emphasizing the need for new regulations to inspect foreign-manufactured cylinders. The proposed Compressed Gas Cylinder Safety and Oversight Improvements Act aims to set forth such regulations. Worthington operates numerous manufacturing facilities across the U.S. and is dedicated to ensuring the quality and safety of its products.
Potential Positives
- Worthington Enterprises is the only American manufacturer of various sizes of steel cylinders, positioning the company as a key player in ensuring safety and compliance in critical infrastructure applications.
- The company is actively collaborating with PHMSA and Congress to promote safety regulations for pressure cylinders, demonstrating a commitment to public safety and industry standards.
- Worthington's long-standing adherence to DOT safety standards for over 50 years strengthens its reputation as a reliable and safe choice compared to non-compliant foreign products.
- The company’s involvement in the legislative process regarding compress gas cylinder safety may enhance its brand recognition and trust among consumers, contractors, and retailers.
Potential Negatives
- The press release highlights significant safety concerns regarding the sale of non-compliant pressure cylinders, which could damage the company's reputation if consumers associate these safety risks with Worthington Enterprises' products.
- The mention of competition from foreign manufacturers, particularly Chinese companies, could be seen as a negative for Worthington Enterprises, suggesting they face challenges in maintaining market share and product integrity.
- The need for legislative action (the Compressed Gas Cylinder Safety and Oversight Improvements Act of 2023) indicates a potential regulatory burden, which could impact operational costs and compliance for the company moving forward.
FAQ
What is the safety advisory from the U.S. DOT about?
The advisory warns about unsafe pressure cylinders sold mainly by non-U.S. manufacturers that do not meet safety standards.
Why are non-compliant cylinders a concern?
These cylinders lack required certifications and can pose safety risks during their use in activities like grilling or refrigerant recovery.
What is Worthington Enterprises' role in cylinder manufacturing?
Worthington Enterprises is the only American manufacturer of various steel cylinders used for critical infrastructure applications.
What actions does Worthington support regarding cylinder safety?
Worthington advocates for regulations to ensure safety and compliance of foreign-manufactured cylinders sold in the U.S.
How can consumers ensure they use safe cylinders?
Consumers should verify that the cylinders they purchase comply with PHMSA regulations and are authorized for safe use.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$WOR Insider Trading Activity
$WOR insiders have traded $WOR stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $WOR stock by insiders over the last 6 months:
- JOSEPH B HAYEK (EVP and CFO) purchased 2,500 shares for an estimated $100,525
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$WOR Hedge Fund Activity
We have seen 113 institutional investors add shares of $WOR stock to their portfolio, and 134 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ARROWSTREET CAPITAL, LIMITED PARTNERSHIP removed 247,998 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $10,279,517
- MILLENNIUM MANAGEMENT LLC added 240,927 shares (+2198.8%) to their portfolio in Q3 2024, for an estimated $9,986,424
- CITADEL ADVISORS LLC added 222,674 shares (+47276.9%) to their portfolio in Q3 2024, for an estimated $9,229,837
- BLACKROCK, INC. added 187,130 shares (+3.8%) to their portfolio in Q3 2024, for an estimated $7,756,538
- PACER ADVISORS, INC. added 156,762 shares (+9.7%) to their portfolio in Q4 2024, for an estimated $6,287,723
- RENAISSANCE TECHNOLOGIES LLC added 121,114 shares (+713.0%) to their portfolio in Q3 2024, for an estimated $5,020,175
- MORGAN STANLEY added 96,902 shares (+34.6%) to their portfolio in Q3 2024, for an estimated $4,016,587
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
COLUMBUS, Ohio, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE: WOR) is encouraging consumers, contractors, retailers and other users of pressure cylinders to follow the January 13, 2025, safety advisory issued by the U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) regarding unsafe cylinders manufactured primarily by non-U.S. companies. Worthington Enterprises is the only American manufacturer of many sizes of steel cylinders, which are used for various critical infrastructure purposes such as cooking, home heating, refrigeration/cooling, foam insulation, sealants and adhesives.
In its advisory, PHMSA described the safety issue by writing, “Cylinders that are not authorized for the safe filling or transport of gases are being sold online by major retailers. PHMSA is particularly concerned that these cylinders are not manufactured to a DOT specification or UN standard, lack certification markings as required by [PHMSA’s regulations], and are being sold to consumers, and HVAC personnel and service technicians. For cylinders that are used for activities such as outdoor grilling or camping, consumers should ensure their cylinders are in compliance with [PHMSA’s regulations] for their own safety. Likewise, technicians are supposed to use authorized DOT specification or UN standard cylinders to extract or recover refrigerant gas from systems in need of repair or replacement, so that the cylinder can be safely and legally transported.”
Joe Hayek, president and chief executive officer, Worthington Enterprises, said, “We are grateful for PHMSA’s work to keep Americans safe, and we share the agency’s concerns about the proliferation of non-compliant cylinders making their way into and throughout our country. There is mounting evidence that companies in China and other countries are undermining DOT’s pressurized cylinder quality and safety standards that Worthington has adhered to for more than 50 years. The sale of non-compliant cylinders and the shipping of hazardous material in those cylinders without required markings creates safety risks that need to be addressed.”
The Compressed Gas Cylinder Safety and Oversight Improvements Act of 2023 (H.R. 3404 and S. 1632) is an important part of the solution. The proposed bill, which was introduced by a bipartisan group of co-sponsors from the U.S. Senate and U.S. House of Representatives, seeks to require the U.S. Secretary of Transportation to establish regulations relating to cylinders manufactured in foreign countries and sold in the United States. Regulations could include facility inspections and other protocols to ensure safety and compliance. While this bill was not enacted before the end of the last Congressional session, Worthington Enterprises is eager to collaborate with the new Congress and the Trump administration to enact these reforms in 2025.
Hayek concluded, “These products, which are growing in variety and volume, are potentially unsafe and put users in danger. The risks presented will only grow in the absence of consistent inspection and accountability. We are looking forward to working with Congress and the professional leadership at PHMSA to champion high-quality and safe products made in America.”
Worthington Enterprises manufacturers cylinders in the United States at facilities in Maize, Kansas; Paducah, Kentucky; Columbus, Jefferson and Westerville, Ohio; West Warwick, Rhode Island; and, Chilton, Wisconsin.
About Worthington Enterprises
Worthington Enterprises (NYSE: WOR) is a designer and manufacturer of market-leading brands that help enable people to live safer, healthier and more expressive lives. The Company operates with two primary business segments: Building Products and Consumer Products. The Building Products segment includes cooking, heating, cooling and water solutions, architectural and acoustical grid ceilings and metal framing and accessories. The Consumer Products segment provides solutions for the tools, outdoor living and celebrations categories. Product brands within the Worthington Enterprises portfolio include Balloon Time®, Bernzomatic®, Coleman® (propane cylinders), CoMet®, Garden Weasel®, General®, HALO™, Hawkeye™, Level5 Tools®, Mag Torch®, NEXI™, Pactool International®, PowerCore™, Ragasco®, Well-X-Trol® and XLite™, among others. The Company also serves the growing global hydrogen ecosystem via a joint venture focused on on-board fueling systems and gas containment solutions.
Headquartered in Columbus, Ohio, Worthington Enterprises and its joint ventures employ approximately 6,000 people throughout North America and Europe.
Founded in 1955 as Worthington Industries, Worthington Enterprises follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Worthington Enterprises achieves this outcome by empowering its employees to innovate, thrive and grow with leading brands in attractive markets that improve everyday life. The Company engages deeply with local communities where it has operations through volunteer efforts and The Worthington Companies Foundation , participates actively in workforce development programs and reports annually on its corporate citizenship and sustainability efforts . For more information, visit worthingtonenterprises.com .
Forward-Looking Statements
Statements by Worthington Enterprises that are not limited to historical information constitute “forward-looking statements” under federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from those expected by Worthington Enterprises. Readers should evaluate forward-looking statements in the context of such risks, uncertainties and other factors, many of which are described in Worthington Enterprises’ filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements are qualified by the cautionary statements included in Worthington Enterprises’ SEC filings and other public communications. This press release speaks only as of the date hereof. Worthington Enterprises does not undertake any obligation to update or revise its forward-looking statements except as required by applicable law or regulation.
Sonya L. Higginbotham
Senior Vice President
Chief of Corporate Affairs, Communications and Sustainability
614.438.7391
[email protected]
Marcus A. Rogier
Treasurer and Investor Relations Officer
614.840.4663
[email protected]
200 West Old Wilson Bridge Rd.
Columbus, Ohio 43085
WorthingtonEnterprises.com