Ontario-based service center Russel Metals Inc. announced Thursday Q1 2012 earnings of $33 million on revenues of $803 million, matching earnings of $33 million on revenues of $658 million in Q1 2011.
Revenues in the company's metals service center segment increased 18 percent to $428 million in Q1 2012 compared to the same quarter a year ago as a result of improved demand levels.
Revenues in the energy tubular products segment for Q1 increased 23 percent to $275 million compared to Q1 2011. Increased volume as a result of large line pipe orders improved the operating profits to $19 million. These large orders have lower gross margin percentages and consequently operating profits as a percentage of revenues declined to 6.9 percent. The second quarter is historically the weakest quarter for this segment as spring breakup impacts Canadian shipments.
Demand in the steel distributors segment was strong in Q1, and revenues increased 42 percent year-on-year.