* Q2 loss C$0.05/shr vs EPS C$0.12 last year
* Hurt by strong competition in non-residential market
* Sales rise 23 pct
* Sales helped by Q1 FabSouth acquisition
Aug 5 (Reuters) - Canadian construction company Canam Group Inc CAM.TO posted a second-quarter loss as strong competition in the non-residential construction market continued -- primarily in the United States -- exerting pressure on gross margins.
Canam, which designs and manufactures welded beams, joists and girders, posted a net loss of C$2 million, or 5 Canadian cents a share, compared with a profit of C$5.2 million, or 12 Canadian cents a share in the year-ago period.
Sales rose to C$185.4 million from C$151.2 million last year.
The company said improved sales performance during the quarter was a result of its acquisition of FabSouth in the first quarter, as well as continued high level of activity in the infrastructure market.
In February, Canam agreed to buy an additional 65 percent stake in U.S. steel fabricator FabSouth for $65 million, after it purchased 15 percent of the company -- a producer and erector of steel products at six plants in the southern United States. [ID:nN23105867]
Canam’s backlog of orders stood at C$563 million, as at June 26, compared with C$355 million, as at June 27, 2009.
Shares of the company, closed at C$7.89 Wednesday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Don Sebastian) ((firstname.lastname@example.org; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: email@example.com))