November 2, 2010 / 9:25 PM / 8 years ago

UPDATE 1-Higher margins lift Russel Metals profit 30 pct

* Q3 EPS C$0.28 vs C$0.21 yr ago

* Revenue up 34 percent

TORONTO, Nov 2 (Reuters) - Canada’s Russel Metals Inc (RUS.TO) reported a 30 percent rise in quarterly profit on Tuesday, helped by higher margins, and said it sees modest short- and medium-term growth in its markets.

For the third quarter, the metals producer and distributor earned C$16.6 million ($16.4 million), or 28 Canadian cents a share, up from C$12.8 million, or 21 Canadian cents a share, a year ago.

Revenue for the company, whose three segments are metals service centers, energy tubular products and steel distributors, rose 34 percent to C$581.9 million.

Analysts on average were expecting earnings of 27 Canadian cent a share on revenue of C$510.8 million, according to Thomson Reuters I/B/E/S.

“Energy operations the next two quarters should be stronger than the last year,” said Russel Metals, which has seen an improvement in drilling activity in the energy sector in Canada and the United States.

Shares of Toronto-based Russel Metals closed at C$20.48 Tuesday on the Toronto Stock Exchange. ($ = $1.01 Canadian) (Reporting by Bhaswati Mukhopadhyay; editing by Janet Guttsman)

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