Russel Metals’ pipe division remains strong as overall earnings drop

Friday, 03 August 2012 01:11:13 (GMT+3)   |  

On Thursday, Toronto, Ontario-based metals service center Russel Metals Inc. announced that in Q2 2012, earnings totaled $23 million on revenues of $719 million, compared to earnings of $31 million in Q2 2011.

Revenues in the metals service center segment increased 11 percent to $432 million in Q2 compared to 2011 on stronger demand levels. Gross margins, however, were 20.4 percent compared to 23.7 percent in Q2 2011 as inventory holding gains experienced last year were not repeated.

In the energy tubular products segment for Q2 2012, revenues increased 32 percent to $192 million compared to Q2 2011 as a result of large line pipe orders in US operations and strong demand in operations servicing the Alberta oil sands.

In the steel distribution segment, revenues increased 11 percent in the Q2 2012 quarter to $92 million compared to the 2011 second quarter. Gross margins in this segment were down to 13.9 percent compared to the 18.8 percent experienced in the 2011 second quarter.


Similar articles

Earnings rise for MRC Global despite lower OCTG and line pipe sales

05 Aug | Steel News

Pipe market volatility and high inventories affecting Canada’s Bri-Chem

15 May | Steel News

Energy segment remains bright spot for Russel Metals

06 May | Steel News

Bri-Chem reports drop in steel pipe sales amid lower drilling activity

16 Nov | Steel News

Russel Metals earns $23 million in Q3 on growing energy pipe activity

01 Nov | Steel News

Energy tubular sales boost Q1 earnings for Russel Metals

04 May | Steel News

Russel Metals has excellent year with earnings reaching C$118 million

16 Feb | Steel News

Earnings triple for Russel Metals in Q3

04 Nov | Steel News

Russel Metals sees improved earnings in Q2

04 Aug | Steel News

Turkish hollow section prices rise but slow demand keeps market under pressure

06 Feb | Tube and Pipe