August 3, 2010 / 9:07 PM / 7 years ago

UPDATE 1-Samuel Manu-Tech posts Q2 profit

* Q2 EPS C$0.03 vs loss C$0.31/shr yr ago

* Q2 sales up 17.3 pct

* Sees downward pressure on carbon steel pricing in Q3

Aug 3 (Reuters) - Canadian steel and plastic distributor Samuel Manu-Tech Inc (SMT.TO) posted a quarterly profit, helped by better performances at its packaging and metal processing segments.

For the second quarter, the company reported net income of C$1.0 million, or 3 Canadian cents a share, compared with net loss of C$10.0 million, or 31 Canadian cents a share, a year earlier.

Sales rose 17.3 percent to C$184.9 million.

“Our outlook remains cautious, however, as ongoing margin pressure and the sustainability of the recovery in the North American economy remain uncertain,” Chief Executive Mark Samuel said in a statement.

The company’s packaging segment generated an operating profit of C$2.7 million in the second quarter, compared with an operating loss of C$5.7 million, a year ago.

Its metal processing segment posted an operating profit of C$3.7 million, compared with an operating loss of C$8.0 million, a year earlier.

The company said it expects continued downward pressure on carbon steel pricing levels in the third quarter and also sees stainless steel pricing levels to go down further in the second half of the year, partly due to reduced seasonal demand and lower surcharges.

Shares of the Toronto-based company closed at C$7.44 Tuesday on the Toronto Stock Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Maju Samuel)

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