Toronto, Ontario-based metals distribution company, Russel Metals Inc. announced Thursday that net earnings rose nearly four-fold in Q1 2011 over the same period a year ago. Net earnings totaled C$33 million (US$34 million) in Q1 2011 compared to C$9 million (US$9.3 million) in Q1 2010.
Higher steel prices led the gain for Russel Metals in Q1 2011. Russel's steel distribution segment had a 40 percent increase in revenues in Q1 2011 to C$70 million (US$72.4 million) as operating profits doubled.
The energy tubular product segment had a particularly strong quarter, with sales rising 14 percent year-on-year. In the company's quarterly financial release, Russel Metals attributed to the increase to strong pricing caused by the correction of the elevated inventory levels in the sector, tightening supply and higher raw material costs for the pipe mills, as well as higher prices of flat rolled steel used to make oil country tubular goods (OCTG).