August 11, 2010 / 8:28 PM / 7 years ago

UPDATE 1-Russel Metals posts profit, says tough to keep momentum

* Q2 EPS C$0.31 meets estimates

* Q2 Revenue C$506.1 mln vs est C$561.2 mln

* Says continues to seek acquisitions

* Shares close down 4 pct

Aug 11 (Reuters) - Canada’s Russel Metals Inc (RUS.TO) posted a quarterly profit, helped by higher margins, but said it would be tough to maintain the momentum, particularly at its key service-center operations.

For the second quarter, the metals distribution company earned C$18.7 million ($17.88 million), or 31 Canadian cents a share, compared with a loss of C$24.6 million, or 41 Canadian cents a share, a year ago. Revenue rose 9 percent to C$506.1 million.

Analysts on average expected earnings of 31 Canadian cents a share, on revenue of C$561.2 million, according to Thomson Reuters I/B/E/S.

“We will be challenged to maintain this momentum, particularly in our service center operations in the summer months, but anticipate an improvement in the fall,” Chief Executive Brian Hedges said in a statement.

Russel Metals said it continues to seek potential acquisitions.

The company’s shares, which have gained about 12 percent year to date, closed down 4 percent at C$19.21 Wednesday on the Toronto Stock Exchange. ($1=1.046 Canadian Dollar) (Reporting by Gowri Jayakumar in Bangalore)

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