What happened

Shares of Worthington Industries (WOR 1.39%) were tumbling today after the industrial manufacturing company posted disappointing top-line results in its fiscal first-quarter earnings report.

As of 10:51 a.m. ET, the stock was down 14.1%.

So what

Worthington, which is a steel processor and manufacturer of pressure cylinders for products like propane, among other product lines, said that revenue fell 15% in the quarter to $1.19 billion, missing estimates at $1.23 billion.

The company said lower average selling prices in steel processing as well as lower overall volumes were responsible for the decline in revenue.

Despite that slide on the top line, gross profit jumped 17% to $197.5 million due to higher spreads in steel processing and a $17 million gain on the value of its inventory, which was offset by lower volumes in consumer products. 

As a result, adjusted earnings per share increased from $1.61 in the quarter a year ago to $2.06, which edged out estimates at $2.04.

CEO Andy Rose said, "Our businesses continue to perform well despite some economic uncertainty and signs that consumers are stretched. Our experienced teams continue to navigate the current environment exceptionally well, and we are well positioned with an outstanding balance sheet."

Now what

Worthington didn't give specific guidance for the coming quarter other than the statement above, which implies that challenges in its consumer segment and in the macro environment will persist. 

Despite the solid bottom-line result, falling prices for steel and weakness in the remainder of the business explain why the stock was falling today.

The company is also planning to split its business in two, Worthington Steel and Worthington Enterprises. That move will allow investors to get exposure to a pure-play steel company and for each company to focus on the appropriate value-creation and growth strategies.

Spin-offs have proven popular in the past and can deliver upside to investors. The company currently trades at a price-to-earnings ratio of just 10. Worthington is targeting early December for the separation.