Russel Metals profit falls on lower steel prices

Tue Oct 30, 2012 5:28pm EDT
 
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(Reuters) - Metal distribution company Russel Metals Inc RUS.TO posted a 14 percent fall in third-quarter profit due to lower steel prices.

For the quarter ended September 30, the company's net profit fell to C$22.5 million ($22.5 million), or 37 Canadian cents per share, from C$25.7 million, or 43 Canadian cents per share, a year earlier.

"All of our segments experienced margin pressure in the third quarter as steel prices declined due to lack of demand," Chief Executive Brian Hedges said in a statement.

Analysts on average had expected earnings of 42 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose marginally to C$712.6 million.

Russel Metals operates metal service centers across North America, and distributes steel and tubular products.

(Reporting by Julie Gordon in Toronto and Shounak Dasgupta in Bangalore; Editing by Maju Samuel)