Ontario-based Russel Metals reported Q12013 earnings of $22 million on revenues of $822 million. These results compare to the earnings of $33 million on revenues of $803 million in the same quarter last year and are above the Q4 2012 earnings of $0.34 per share.
Revenues in the metals service center segment decreased 16 percent to $359 million in Q1 2013 compared to Q1 2012 due to lower demand levels. Gross margins at metals service centers improved from Q4 2012 and were slightly lower than the same quarter last year reflecting the leveling off of steel prices.
Revenues in the energy products segment for Q1 2013 increased 42 percent or $114 million to $389 million compared to Q1 2012, aided by the Apex Distribution revenues which were $118 million in Q1. Gross margins at energy products improved from both the 2012 fourth and first quarters to 15.3 percent from 13.1 percent and 13.7 percent, respectively.
Revenues in the steel distributors segment decreased by 26 percent to $74 million in Q1 2013 compared to Q1 2012 due to lower demand levels. Operating profits for Q1 2012 decreased to $5 million from $10 million for Q1 2012.
Brian R. Hedges, President and CEO, commented "The volume decline experienced throughout the service center industry was also felt by Russel Metals. The decline in volume in the first quarter impacted most sectors and was exacerbated by fewer working days in 2013 due to the timing of the Easter holidays and inclement weather following the relatively mild weather experienced in 2012. The drop in Canada was more severe than the US and reflects the impact on the Canadian economy of the energy slowdown in Alberta for both the oil sands and conventional gas drilling activities."