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Russel Metals to Exceed Projected 2nd Quarter Earnings

06/12/2008 - Russel Metals says that the average analysts’ consensus earnings for the second quarter are understated by 35% to 45%.

Russel Metals Inc. announced that the average analysts’ consensus earnings for the second quarter ended June 30, 2008 are understated by 35% to 45%.
 
The average analysts consensus— earnings of $0.78—compares to reported basic earnings per common share of $0.47 in the second quarter of 2007 and $0.46 in the first quarter of 2008.

The company said that its margins have been enhanced by ongoing steel price increases in all three of its segments, boosted by consistent demand in the service center segment and increased activity in areas serviced by the company’s energy tubular products segment. The company said that current economic conditions and uncertainty on the sustainability of the steel price increases were making it difficult to project the earnings levels for the second half of 2008.

Russel Metals, one of the largest metals distribution companies in North America, conducts business in three distribution segments: metals service centers, energy tubular products and steel distributors. The company’s business is carried out 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.