Canam shares drop 12 percent as earnings sag

Wed Aug 6, 2008 12:11pm EDT
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TORONTO (Reuters) - Canam Group said its quarterly profit dropped 9 percent as a slumping U.S. economy helped reduce demand for its construction products, sending its shares to a year low.

Canam said on Wednesday it earned C$12.1 million, or 25 Canadian cents a share, for the quarter ended June 30, down from C$13.3 million, or 27 Canadian cents a share, for the same period last year.

Revenue fell 10.2 percent to C$196.4 million.

The company blamed weak demand for refabricated steel and other construction supplies in parts of North America for the reduced sales.

Analysts had expected an average profit of 24 Canadian cents a share.

The company's shares dropped C$1.13, or 12.2 percent, to a 52 week low of C$8.11 on the Toronto Stock Exchange.

The company also said it planned to buy back up 10 percent of its outstanding shares.

($1=$1.05 Canadian)

(Reporting by Scott Anderson)