TORONTO, ONTARIO--(Marketwire - June 11, 2008)
- Russel Metals Inc. (TSX:RUS) announced today that the average
analysts consensus earnings of $0.78 for the second quarter ended June
30, 2008 are understated by 35% to 45%. Russel Metals reported basic
earnings per common share in the second quarter of 2007 of $0.47 and
$0.46 in the first quarter of 2008.
On-going steel price increases have enhanced our margins in all three
segments. Consistent demand in the service center segment and increased
activity in areas serviced by our energy tubular products segment have
favourably strengthened our projected results for the second quarter of
2008. The current economic conditions and uncertainty on the
sustainability of the steel price increases make it difficult to
project the earnings levels for the second half of 2008.
Russel Metals is one of the largest metals distribution companies in
North America. It carries on business in three distribution segments:
metals service centers, energy tubular products and steel distributors,
under various names including Russel Metals, A.J. Forsyth, Acier
Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T
Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars,
JMS Russel Metals, Leroux Steel, McCabe Steel, Megantic Metal, Metaux
Russel, Metaux Russel Produits Specialises, Milspec Industries, Pioneer
Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall,
Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply,
Wirth Steel and York-Ennis.
Statements contained in this press release that relate to Russel
Metals' beliefs or expectations as to certain future events are not
statements of historical fact and are forward-looking statements.
Russel Metals cautions readers that there are important factors, risks
and uncertainties, including but not limited to economic, competitive
and governmental factors affecting Russel Metals' operations, markets,
products, services and prices that could cause its actual results,
performance or achievements to be materially different from those
forecasted or anticipated in such forward-looking statements.
The forward-looking statements in this document reflect management's
current beliefs and are based on information currently available to
management. The material assumptions applied in making the
forward-looking statements in this document include the following:
demand from the manufacturing, resource and construction segments of
the Canadian economy will be consistent with what we experienced in the
first five months of 2008, oil and gas prices will not change
materially, the recent stability in the price of steel will either
remain constant or increase, and the Canadian dollar will maintain
recent gains while not appreciating significantly. Although the
forward-looking statements contained in this document are based upon
what management believes to be reasonable estimates and assumptions,
Russel Metals cannot ensure that actual results will not be materially
different from those expressed or implied by these forward-looking
statements.
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