UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 6-K
REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of November , 1996.
Russel Metals Inc.
Suite 210, 1900 Minnesota Court, Mississauga, Ontario L5N 3C9
(Address of principal executive office)
[Indicate by check mark whether the registrant files or will file annual reports
under cover
of Form 20-F or Form 40-F.]
Form 20-F Form 40-F
[Indicate by check mark whether the registrant by furnishing the information
contained in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule
12g3-2(b) under the Securities Exchange Act of 1934.]
Yes No
[If "Yes" is marked, indicate below the file number assigned to the registrant
in connection
with Rule 12g3-2(b):
82- ______________.]
RUSSEL METALS/NEWS
STOCK SYMBOL: TSE: RUS.A NASDAQ: RUSAF
RUSSEL METALS REPORTS THIRD QUARTER RESULTS
TORONTO (November 14, 1996) -- Russel Metals Inc. today reported that third
quarter
earnings, before a provision for divested Metals operations, rose to $5.0
million or seven cents
per share from $3.1 million or four cents per share in the third quarter of last
year. After the
provision, the Company reported a loss of three cents per share in the current
period.
The Metals provision of $9.7 million ($5.5 million after tax) includes a charge
to cover costs
related to the previously announced transaction with Samuel, Son & Co., as well
as expenses
related to the reorganization of service centers in Canada and the United
States. These
transactions are expected to improve the profitability of the ongoing Metals
operations.
Comparable Metals operations reported an operating profit in the quarter of
$11.1 million, up 7%
from the $10.4 million reported in the third quarter of last year. Metals
results for the nine months
ending September 30, 1996 remain below the comparable period last year due to
the strong
market conditions that existed in the first half of 1995. The Transport segment
reported slightly
lower operating results of $8.0 million in the quarter, down from the $8.7
million reported in the
comparable quarter last year.
A strong cash flow in the quarter reduced bank indebtedness to $46.8 million, a
decline of $44.9
million from June 30. Accordingly, interest costs of $7.4 million were down 20%
from the $9.3
million in the comparable quarter of last year.
John Pelton, Chairman and CEO of Russel Metals commented, "Metals operations
continued the
trend of improved results in the quarter, and will be strengthened as the full
impact of the recent
corporate moves is felt. The acquisition of the hot rolled bar business from
Samuel, the divestiture
of the Company's light gauge flat rolled processing businesses and the expansion
of our
international segment through the establishment of Fedmet Corp. in Houston,
Texas, are all
expected to add to Metals' profitability."
Russel Metals is one of the five largest distributors and processors of metal
and metal products in
North America through its network of 60 service centers. The Company's operating
units trade
under various names including Russel Metals, Drummond McCall, B & T Steel,
Baldwin
International, Bahcall Group, Total Distributors, Pioneer Steel & Tube, Copco
Steel, Comco Pipe
and Supply, Fedmet Corp., Russel International, and Wirth Limited. Russel Metals
also has
investments in the transportation sector.
For further information, contact:
David Fine
Vice President Planning
and Communications,
Russel Metals
(905) 819 - 7402<PAGE>
<TABLE>
<CAPTION>
RUSSEL METALS INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
($000)
<S> <C> <C>
September 30, December 31,
1996 1995
(Restated)
Current assets
Accounts receivable $226,846 $206,419
Income taxes recoverable 11,940 11,940
Inventories 211,356 242,568
Prepaid expenses and other assets 5,132 3,247
455,274 464,174
Fixed assets
Property, plant and equipment 152,567 161,526
Property held for resale 59,320 57,224
211,887 218,750
Other assets
Long-term receivable 22,714 22,676
Other investments 14,449 16,441
Deferred charges 11,656 14,218
Goodwill 11,933 12,160
Deferred income taxes 64,140 57,089
124,892 122,584
$792,053 $805,508
Current liabilities
Bank indebtedness $ 46,846 $ 63,987
Accounts payable and accrued liabilities 177,698 170,242
Current portion of long-term debt 21,585 21,264
246,129 255,493
Long-Term Debt 180,522 183,807
Shareholders' Equity 365,402 366,208
$792,053 $805,508
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RUSSEL METALS INC.
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Quarter ended September 30
($000, except for per share amounts and average shares outstanding)
Quarter Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
(Restated) (Restated)
<S> <C> <C> <C> <C>
Sales and services
Continuing Metals $308,277 $303,209 $924,079 $ 954,179
Transport 46,323 42,310 17,546 141,076
Divested Metals (10,117) (1,125) (12,871) (167)
$344,483 $344,394 $928,754 $1,095,088
Earnings from continuing operations
Continuing Metals $ 11,158 $ 10,452 $ 30,577 $ 47,741
Transport 7,982 8,685 11,945 14,220
Corporate (2,561) (2,798) (7,950) (8,043)
16,579 16,339 34,572 53,918
Losses from operations and sale of
divested Metals (10,117) (1,125) (12,871) (167)
Interest (7,356) (9,282) (21,438) (29,738)
Earnings (loss) before income taxes (894) 5,932 263 24,013
Provision for (recovery of) income taxes (359) 2,747 190 10,598
Net earnings (loss) for the period $ (535) $ 3,185 $ 73 $ 13,415
Net earnings (loss) per common share
Basic $(0.03) $0.04 $(0.07) $0.20
Fully diluted $(0.03) $0.04 $(0.07) $0.20
Average shares outstanding 51,007,864 51,007,864 51,007,864 51,007,864
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
RUSSEL METALS INC.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(UNAUDITED)
Nine Months ended September 30
($000)
<S> <C> <C>
1996 1995
(Restated)
Operating activities
Net earnings from continuing operations $ 73 $ 13,415
Depreciation and amortization 13,521 12,904
Deferred income taxes (7,138) 2,277
Accrued revenue - deferred income taxes (536) (763)
Gain on sale of fixed assets (115) (394)
Loss on sale of businesses 9,655 -
Cash from continuing operations 15,460 27,439
Changes in working capital items
Accounts receivable (19,881) (5,570)
Inventories 28,779 (16,797)
Accounts payable and accrued liabilities 4,168 26,906
Other (1,865) (2,127)
Cash from continuing operating activities 26,661 29,851
Financing activities
Decrease in long-term debt (2,248) (3,251)
Decrease in long-term receivable 498 2,576
Distributions (3,657) (3,456)
Cash used in financing activities (5,407) (4,131)
Investing activities
Purchase of fixed assets (13,373) (38,020)
Proceeds on sale of fixed assets 6,210 3,098
Proceeds on sale of businesses 16,181 34,074
Purchase of businesses (5,352) (4,857)
Other (6,844) 955
Cash used in investing activities (3,178) (4,750)
Increase in cash from continuing operations 18,076 20,970
Cash used in discontinued operations (935) (15,927)
Increase in cash 17,141 5,043
Cash position, beginning of the period (63,987) (99,122)
Cash position, end of the period $(46,846) $ (94,079)
NOTE: Cash position represents bank indebtedness.
</TABLE>
<PAGE>
Report to Shareholders
September 30, 1996
THIRD QUARTER RESULTS
Third quarter revenue was $367.3 million compared with $367.7 million a year
earlier. For the
nine months ended September 30, revenue declined 5.8% to $1,101.5 million
compared with
$1,169.6 million for the nine months of 1995. Transport comparable year to date
sales increased
7.5% over last year; however, the divestiture of White Pass Petroleum operations
effective May
31, 1995 resulted in a reduction in segment and total Company revenues for the
nine months
ended September 30, 1996 compared to the same period in 1995. Transport
operating profits
declined slightly due to competitive pricing pressures in the Tri-Line trucking
unit. Metals
revenues for the quarter from on-going operations were comparable to the same
quarter last year,
while operating profits improved 6.8% mainly related to the Trading operations.
The acquisition from Samuel, Son & Co. Ltd. of their hot rolled bar operations,
the divestiture
of the Company's light gauge flat rolled processing businesses and the related
reorganization of
Eastern Canada service centers have been substantially completed.
A provision of $9.7 million ($5.5 million after tax) has been included in the
quarter to cover
principally the costs and losses from the sale of the light gauge flat rolled
businesses, as well as
expenses related to service center reorganization in Canada and the United
States.
The Company recorded net income of $5.0 million or $0.07 per common share in the
third quarter
compared with $3.1 million or $0.04 per common share last year, prior to
provisions. Including
the provision, the unaudited net loss for the third quarter ended September 30,
1996 was $0.5
million. The unaudited net income for the nine months ended September 30, 1996
was $0.1
million compared with net income of $13.4 million for the nine months ended
September 30, 1995.
After dividend distributions, the unaudited net loss per common share was $0.03
for the third
quarter of 1996 and an unaudited net loss of $0.07 per common share for the nine
months ended
September 30, 1996. The comparable figures for 1995 were unaudited net income
per common
share of $0.04 and $0.20.
<PAGE>
<TABLE>
<CAPTION>
REPORT ON OPERATIONS
Quarter Ended Nine Months Ended
September 30, September 30,
<S> <C> <C> <C> <C> <C> <C>
1996 Change 1996 Change
1996 1995 As % of 1995 1996 1995 As % of 1995 (in millions) (in millions)
Revenues
Continuing Metals $308.3 $303.2 1.7 % $ 924.1 $ 954.2 (3.2)%
Transport 46.3 42.3 9.5 % 117.5 141.1 (16.7)%
Continuing Operations $354.6 $345.5 2.6 % $1,041.6 $1,095.3 (4.9)%
Segment Operating Profits
Continuing Metals $ 11.1 $ 10.4 6.8 % $ 30.6 $ 47.7 (36.0)%
Transport 8.0 8.7 ( 8.1) % 11.9 14.2 (16.0)%
Continuing Operations $ 19.1 $ 19.1 - $ 42.5 $ 61.9 (31.4)%
</TABLE>
The table of results has been prepared excluding the non-recurring provisions,
losses from
operations of the divested units and corporate expenses.
During the quarter, the Company significantly increased its capabilities in
international steel
sourcing through the establishment of Fedmet Corp., providing import services to
customers in
the U.S. gulf states through principal offices in Houston, Texas.
Construction has substantially concluded on our new $12 million Milton, Ontario
plant, bringing
the first large-scale automated handling and logistics capabilities in Canada to
the Ontario and
Quebec bar products market.
OUTLOOK
Metals' initiatives taken during 1996, both to reposition our existing business
and to expand our
strongest sectors, are expected to result in improved levels of efficiency in
1997. Transport
revenue and profit prospects are strengthening, particularly in the growth of
passenger revenue
at the White Pass railway unit.
<PAGE>
Russel Metals Inc.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
For The Nine Months Ended September 30, 1996
The following management's discussion and analysis of financial condition and
results of
operations should be read in conjunction with the audited Consolidated Financial
Statements for
the year ended December 31, 1995 including the notes thereto, and the
accompanying condensed
unaudited Consolidated Financial Statements for the quarter and nine months
ended September
30, 1996. In the opinion of management, such interim information contains all
adjustments,
consisting only of normal recurring adjustments, necessary for a fair
presentation of the results of
such periods. The results of operations for the periods shown are not
necessarily indicative of the
results for the full year. All dollar references in this report are in Canadian
dollars.
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
<S> <C> <C> <C> <C> <C> <C>
1996 Change 1996 Change
1996 1995 As % of 1995 1996 1995 As % of 1995 (in thousands) (in thousands)
Revenues
Continuing Metals $308,277 $303,209 1.7 % $ 924,079 $ 954,179 (3.2)%
Transport 46,323 42,310 9.5 % 117,546 141,076 (16.7)%
Continuing Operations $354,600 $345,519 2.6 % $1,041,625 $1,095,255 (4.9)%
Segment Operating Profits
Continuing Metals $11,158 $10,452 6.8 % $ 30,577 $ 47,741 (36.0)%
Transport 7,982 8,685 ( 8.1) % 11,945 14,220 (16.0)%
Continuing Operations $19,140 $19,137 - $ 42,522 $ 61,961 (31.4)%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Return on Average Net Assets
Nine Months Ended September 30,
Annualized Operating Profit
Average Net Assets Return on Average Net
Assets
<S> <C> <C> <C> <C>
1996 1995 1996 1995
(in thousands)
Continuing Metals $331,300 $343,200 12.3% 18.6%
Transport 103,600 121,300 15.4% 15.6%
Divested Metals 18,600 37,000
Corporate and Discontinued 186,200 204,000
$639,700 $705,500
Average net assets are calculated based on opening and closing monthly positions.
</TABLE>
Segment Information
Metals - The following table shows the revenues and operating profits and the
changes for the
business segments of the Metals operations for the periods indicated:
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
<S> <C> <C> <C> <C> <C> <C>
1996 Change 1996 Change
1996 1995 As % of 1995 1996 1995 As % of 1995
(in thousands) (in thousands)
Revenues
Service Centers $188,816 $177,254 6.5 % $569,933 $ 566,511 0.6%
Specialty Metals
and Trading 119,461 125,955 (5.2)% 354,146 387,668 (8.6)%
Continuing Metals 308,277 303,209 1.7 % 924,079 954,179 (3.2)%
Divested Metals 12,660 22,145 59,900 74,374
$320,937 $325,354 (1.4) % $983,979 $1,028,553 (4.3)%
Segment Operating Profits
Service Centers $ 5,383 $ 5,439 (1.0) % $15,254 $29,213 (47.8)%
Specialty Metals
and Trading 5,775 5,013 15.2 % 15,323 18,528 (17.3)%
Continuing Metals 11,158 10,452 6.8 % 30,577 47,741 (36.0)%
Divested Metals (10,117) (1,125) (12,871) (167)
$ 1,041 $ 9,327 (88.8) % $17,706 $47,574 (62.8)%
</TABLE>
On August 30, 1996 the Company finalized two previously announced transactions
with Samuel,
Son & Co., Limited. In one transaction, the Company acquired the majority of
Samuel's general
line carbon hot rolled bar business in Canada for $4.3 million. In the other
transaction, Samuel
acquired the carbon steel light gauge flat rolled coil business of the Company
in Ontario and
Quebec for proceeds of $15.8 million. Samuel will be a primary source of supply
for the
Company's carbon, stainless and aluminum flat rolled general line requirements.
The Company
will continue to service the general line carbon, stainless and aluminum sheet
requirements of its
20,000 customers.
The Company retains its heavy gauge flat rolled coil resale and processing
business operating
under the name B&T Steel. It also continues its flat rolled coil business in
locations outside of
Ontario and Quebec.
On October 22, 1996, the Company announced that it had agreed to sell its carbon
steel toll-processing center in Hamilton, Ontario to Cold Metals Products
Company, Ltd. for $7.8 million.
This transaction closed November 1, 1996.
The divested metals segment presented in the table above includes the businesses
sold to Samuel,
Son & Co., Limited and Cold Metals Products Company, Ltd. The segment operating
profit for
divested Metals operations includes a provision of $9.7 million. This provision
represents the costs
and losses as a result of these two transactions, as well as costs related to
the downsizing of the
head office operations.
Metals revenues from continuing operations increased 1.7% for the third quarter
of 1996
compared to the same period in 1995 and decreased 3.2% year-to-date, compared
with the first
nine months of 1995.
The increase in service center revenues for the third quarter of 1996 compared
to the third
quarter of 1995 relates to higher volumes offset partially by lower average
selling price per ton.
For the nine months ended September 30, 1996, the service center revenues
approximate revenues
for the same period in 1995.
The lower pricing resulted in a 1.0% decrease in segment operating profits for
service centers in
the third quarter of 1996 compared to the third quarter of 1995. Steel pricing
levels experienced
in the third quarter are expected to continue for the balance of 1996.
Specialty Metals and Trading combined had lower sales of 5.2% in the third
quarter of 1996
compared to the third quarter 1995. This is a result of a combination of
reduced volumes and
lower pricing in the specialty businesses, and lower imports in the Trading
operations. On a year-to-date basis to September 30, 1996, Trading revenues
are approximately 4.3% less than year-to-date September 30, 1995, and specialty
businesses account for the remainder of the decrease in
revenues compared to 1995.
Trading segment operating profits improved slightly for the third quarter of
1996 compared to the
third quarter of 1995 due to higher gross margins on products imported in 1996.
Specialty Metal
businesses had a higher segment operating profit for the third quarter of 1996
compared to the
third quarter of 1995 due primarily to improved operating profits in the tubular
operations.
Transport - Transport operations had increased revenue of 9.5% in the third
quarter of 1996
compared to the same period in 1995. Thunder Bay Terminals experienced similar
revenues and
operating profits as compared to the same periods last year. Tri-Line trucking
operations had
increased revenue of 8.8% due to higher volumes although lower pricing resulted
in operating
profits of 4.0% for the third quarter 1996 compared to 5.1% for the third
quarter of 1995. White
Pass Rail had a strong finish to the tourist season with revenues for the
quarter approximately
17.4% higher than third quarter 1995, due to higher passenger counts.
Reduced revenue and operating profits in the Transport operations for the nine
months ended
September 30, 1996, as compared with the same period in 1995, relate primarily
to the inclusion
in the 1995 results of the White Pass Petroleum operations, which were sold
effective May 31,
1995.
Consolidated Results
Revenues - The decrease in consolidated revenues for the quarter of 0.1% results
from a decrease
in Metals offset by an increase in Transport as discussed above.
Operating Profits - The continuing operations had a segment operating profit for
the quarter ended
September 30, 1996, equivalent to the same quarter last year. The segment
operating profit
including divested operations was $9.0 million for the quarter ended
September 30, 1996,
compared to $18.0 million for the same quarter of 1995.
Interest Expense - The following table shows the components of interest expense.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Third Second First Fourth Third
Quarter Quarter Quarter Quarter Quarter
1996 1996 1996 1995 1995
(in thousands)
Interest
Long-term
Fixed Rate $ 861 $ 861 $ 856 $ 863 $ 870
Floating Rate 4,672 4,334 4,670 4,512 5,507
Short-term
Operating Loans 1,823 1,855 1,506 2,588 2,905
$7,356 $7,050 $7,032 $7,963 $9,282
</TABLE>
During the second quarter of 1996, the Company adopted the disclosure and
presentation
required under the new financial instruments section of the CICA Handbook
related to
Convertible Debentures. This presentation splits the 9% Convertible Debentures,
previously
disclosed under shareholders' equity, into a debt component and a shareholders'
equity
component. Correspondingly, the interest expense has been reduced to show only
the portion
related to the liability and the remainder of the payment to debenture holders
net of tax is treated
as a distribution from retained earnings. The income statement impact of the
change was to
increase net income by $2.0 million for the nine months ended September 30, 1996
and $1.8
million for the nine months ended September 30, 1995. The earnings per share
remains
unchanged.
The lower floating rate long-term debt interest expense for the third quarter of
1996 compared
to the third quarter of 1995, primarily related to a more favourable interest
rate in 1996. The
reduction in short-term interest for the quarter ended September 30, 1996
compared to the
quarter ended September 1995 is a result of the lower level of borrowings plus a
lower interest rate
in the third quarter of 1996 compared to the same period in 1995.
Net Earnings - Net loss for the quarter was $0.5 million compared to earnings of
$3.1 million for
the same quarter in 1995. Year-to-date net earnings from operations are $0.1
million compared
to net earnings of $13.4 million for year-to-date 1995. The reduction is a
result of the loss on the
sale of the flat rolled coil business and lower Transport segment profits offset
by lower interest
expense. Excluding divested operations, the net earnings for the quarter ended
and year to date
September 30, 1996, were $5.2 million and $7.4 million, respectively.
Liquidity and Capital Resources
The average net assets employed, shown on page two, set forth the operating
assets of the
Company for the Metals and Transport operations. The remaining $186.2 million
of corporate
assets mainly relates to discontinued operations and assets held for resale.
The net reduction in
assets since September 30, 1995 mainly relates to the sale of the flat rolled
operations in August
1996 and Cashway operations in November 1995.
Corporate assets and assets held for resale are comprised of the following
items:
<TABLE>
<CAPTION>
<S> <C> <C>
As at September 30,
1996 1995
Deferred Tax Debits and Taxes Recoverable $ 76.1 $ 65.7
Working Capital - Discontinued Operations -- 36.3
Property Held For Resale 59.3 65.1
Minority Equity Interest in Divested Operations 11.9 13.1
Deferred Financing Costs 6.9 7.0
Debt in Divested Operations 22.7 12.1
Other 10.1 0.9
TOTAL $187.0 $200.2
</TABLE>
During the nine months ended September 30, 1996, the Company generated
$17.1 million cash.
Continuing operations generated cash from operations of $15.5 million and $11.2
million from
working capital, primarily related to reduced inventory levels in the Metals
segment. Proceeds on
sale of businesses, including the carbon steel light gauge flat rolled operation
generated cash of
$16.2 million, while acquisitions of metals businesses utilized $5.4 million.
Capital expenditures
incurred, mainly in the service center operations, utilized $6.2 million.
Discontinued operations
consumed $0.9 million during the period to fund previously agreed capital
expenditures on
properties leased to Cashway Building Centres.
For the nine months ended September 30, 1995, the Company generated $5.0 million
cash.
Continuing operations generated cash from operations of $27.4 million and $2.5
million from
working capital. The sale of the White Pass Petroleum operations generated cash
of $34.1
million, while the reconstruction of the White Pass Rail dock and other capital
expenditures
utilized cash of $38.1 million. Discontinued operations consumed $15.9 million
in cash primarily
related to seasonal accounts receivable and inventory buildup at Cashway
Building Centres.
The Company currently has a $350 million banking facility. Under the terms of
its credit
agreement, the amount which the Company may draw down fluctuates based on
specified ratios.
At September 30, 1996, the Company was entitled to borrow up to $199 million.
At September
30, 1996, $43.3 million was utilized for bank borrowings and $26.7 million for
letters of credit.
The Company has no significant long-term debt repayments scheduled before 1998.
The current
portion of long-term debt as at September 30, 1996 includes $16.6 million
related to the 10.2%
debentures retractable annually until due on July 13, 1998 and $5.0 million
related to the current
portion of the 9% convertible debentures (see discussion under consolidated
results interest
expense).
The ratio of current assets to current liabilities was 1.9 at September 30, 1996
and 1.8 at December
31, 1995. The debt to equity ratio was 0.7 at September 30, 1996 and
December 31, 1995.
OUTLOOK
Metals' initiatives taken during 1996, both to reposition our existing business
and to expand our
strongest sectors, are expected to result in improved levels of efficiency in
1997. Transport
revenue and profit prospects are strengthening, particularly in the growth of
passenger revenue
at the White Pass railway unit.
<PAGE>
<TABLE>
<CAPTION>
Russel Metals Inc.
Reconciliation of Net Income to U.S. GAAP
Quarter and Nine Months Ended September 30, 1996
(000)
<S> <C> <C> <C> <C>
Quarter Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Net earning (loss) as shown on the
financial statements $(535) $3,185 $ 73 $13,415
Items having the effect of
increasing reported income
Amortization of unrealized
exchange loss (gain) on
long-term debt 14 (51) 48 (45)
Items having the effect of decreasing
reported income
Unrealized exchange gain
on long-term debt 23 259 64 499
Distribution - 9% Convertible
Debentures (681) (606) (1,970) (1,768)
_____ _____ _____ _____
Net income (loss) according
to U.S. GAAP $(1,179) $2,787 $(1,785) $12,101
</TABLE>
<PAGE>
RUSSEL METALS/NEWS
FOR IMMEDIATE RELEASE
STOCK SYMBOL: TSE: RUS.A
NASDAQ: RUSAF
RUSSEL METALS DECLARES DIVIDEND
FOR CLASS II PREFERRED SHARES, SERIES C
TORONTO (November 14, 1996) -- Russel Metals Inc. announced today that it has
declared a
dividend of 46.875 cents per share on its Convertible Class II Preferred Shares,
Series C, payable
on December 15, 1996 to shareholders of record at the close of business on
November 28, 1996.
Russel is one of North America's five largest metals distribution and processing
organizations
through its network of 47 Canadian and 13 U.S. service centers, which provide
and process a
wide range of carbon steel and alloy metal products.
-30-
For further information, contact:
David Fine,
Vice President
Planning and Communications
Russel Metals
(905) 819-7402
RUSSEL METALS/NEWS
STOCK SYMBOL: TSE: RUS.A
NASDAQ: RUSAF
RUSSEL METALS SELLS STEEL TOLL-PROCESSING CENTRE
TORONTO (October 22, 1996)--Russel Metals Inc. today announced that it has
agreed to sell its steel
toll-processing centre in Hamilton, Ontario to Cold Metals Products, Inc. (NYSE:
CLQ) for $7.8
million. The sale is expected to close by early November.
Wayne Mang, President of Russel Metals Inc. commented, "The operation we are
selling is involved
solely in the toll-processing of light gauge flat rolled steel. This sale
follows the transaction with
Samuel, Son & Co. and completes our exit from the flat rolled light gauge
processing business. Russel
will continue to focus on what we do best - full line distribution of general
line products, specialty
metals niches and international trading. These are all strong growth areas for
us."
Although Russel is exiting the processing of light gauge material, the Company
will continue to
distribute a full range of cut sheet products through its full line distribution
units to customers in
Canada and the U.S. In addition, B & T Steel, a heavy gauge flat rolled
processing unit in Hamilton,
Ontario continues with Russel Metals as a successful niche unit.
Russel Metals is one of the five largest processors of metal and metal products
in North America
through its network of 58 service centers. The Company's operating units trade
under various
names including, Russel Metals, Drummond McCall, Baldwin International, I.
Bahcall Steel & Pipe,
Total Distributors, Pioneer Steel & Tube, B & T Steel, Comco Pipe and Supply and
Wirth Limited.
Russel Metals also has investments in the transportation sector.
For further information, contact:
David Fine
Vice President, Planning and Communications
(905) 819-7402<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Russel Metals Inc.
(Registrant)
Date: November 14, 1996 By:
Randall B. Williamson
Vice-President, Treasurer and
Assistant
Secretary
