NEWS
FOR IMMEDIATE RELEASE
TSX STOCK SYMBOLS: RUS, RUS.PR.C
RUSSEL METALS REPORTS Q2 RESULTS OF CDN $0.08 PER SHARE
TORONTO, CANADA -- July 24, 2003 -- Russel Metals Inc. today announced unaudited net earnings of $3.6 million or $0.08 basic earnings per share for the second quarter ended June 30, 2003, a decrease of 64% compared to last year's second quarter earnings of $0.22 per share. The Company experienced a decline in segment operating profits in all three areas due to lower margins and weaker demand.
The net earnings for the six months ended June 30, 2003 were $7.2 million compared to $12.6 million for the six months ended June 30, 2002. The earnings per share for the six months ended June 30, 2003 were $0.16 versus $0.30 in the same period for 2002.
Total revenues were $706.7 million for the six months ended June 30, 2003, a 4% increase compared to $677.4 million for the same period in 2002. The increase in the six month consolidated revenues is attributable to higher selling prices in service centers and increased volume in the energy sector.
Total revenues of $339.8 million for the three months ended June 30, 2003 were slightly down compared to the second quarter of 2002 revenue of $351.5 million. The revenue decline is mainly related to weak demand and an over supply of product in North America.
Bud Siegel, President and CEO commented, "Subsequent to March 2002, market prices quickly escalated because of the U.S. Section 201 steel import tariffs and safeguard measures, albeit without a corresponding increase in demand. In the first half of 2003, demand has remained uneven, both new and previously idled tonnage have come on-stream and prices have dropped dramatically from last year's highs. Russel Metals has responded by reducing operating costs and rationalizing its balance sheet, generating almost $27 million in cash from operations. I believe the balance of 2003 will be very difficult for the industry unless there is a rationalization of capacity and an increase in demand."
Subsequent to the quarter end, Russel Metals successfully completed the acquisition of Acier Leroux inc. Mr. Siegel went on to state, "The management of Russel Metals and Acier Leroux are actively evaluating the opportunities presented by the acquisition and I am extremely pleased with the strengths we have identified in our combined operations. We anticipate the integration of the two companies to be completed by early 2004."
The Company will be holding an Investor Conference Call on Friday, July 25, 2003 at 9:00 a.m. EST to review its second quarter results for 2003. The dial-in-telephone number for the call is 1-888-433-1657.
For those unable to participate in the conference call, it will be recorded and available for listening at 1-800-558-5253 until midnight, August 1. You will be required to enter reservation number 21014581 in order to access the call.
Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three metals distribution segments: service center, energy sector and import/export, under various names including Russel Metals, A.J. Forsyth, Acier Dollard, Acier Leroux, Acier Loubier, Acier Richler, Armabec, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Drummond McCall, Ennisteel, Fedmet Tubulars, Leroux Steel, McCabe Steel, Mégantic Métal, Métaux Russel, Milspec Industries, Poutrelles Delta, Pioneer Pipe, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Transfo-Métal, Triumph Tubular & Supply, Vantage Laser, Wirth Steel and York Steel.
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For further information, contact:
Brian R. Hedges, C.A.
Executive Vice President
and Chief Financial Officer
Russel Metals Inc.
(905) 819-7401
Web site : www.russelmetals.com
e-mail: info@russelmetals.com
