Russel Metals Announces Third Quarter Results

About this update from Russel Metals Inc.

[{"type":"text","content":"\n\n\nTORONTO, Nov. 7, 2013 /CNW/ - Russel Metals Inc. (TSX: RUS) today\n announced third quarter 2013 earnings of $19 million, or $0.31 per\n share on revenues of $797 million.  These results compare to earnings\n of $23 million or $0.37 per share on revenues of $713 million in the\n same quarter last year and the second quarter 2013 earnings of $0.33\n per share.  The 2013 third quarter results include a pre-tax impairment\n charge of $5 million relating to our Thunder Bay Terminals operation\n and pre-tax income due to a reduction in the projected earnout payment\n associated with the Apex Distribution acquisition of $4 million.\n\n\nRevenues in our metals service center segment slipped 4% to $367 million\n in the third quarter of 2013 compared to the 2012 third quarter due to\n lower pricing.  Demand at the metals service centers increased by 6%\n over the 2012 third quarter.  Gross margins at our metals service\n centers in the 2013 third quarter were $1 million lower than the same\n quarter last year reflecting lower steel prices.  The 2013 third\n quarter metals service center operating profits were $20 million\n compared to $23 million in the 2012 third quarter.\n\n\nRevenues in our energy products segment for the third quarter of 2013\n increased 42% or $104 million to $353 million compared to the 2012\n third quarter, primarily due to the acquisition of Apex Distribution.\n On a same store basis, our energy products segment revenues were up\n 10%.  Operating profit was consistent with the 2012 third quarter as\n the strong results from Apex Distribution were offset by inventory\n charges at our other energy products operations.  Since 2009, there\n have been changes in the energy industry caused by significant\n increases in horizontal drilling and developments in fracking. \n Conventional vertical drilling activity has remained low due to low\n natural gas prices.  Our operations have done a good job of shifting\n their traditional product mix used in conventional vertical wells to\n the higher grades of pipe and high strength couplings associated with\n the increased horizontal drilling.  The market for conventional gas\n drilling pipe products remains depressed and consequently our energy\n products segment sold slow moving inventory at a loss of $2 million and\n als...

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