Russel Metals Inc.
TSX : RUS

Russel Metals Inc.

June 11, 2008 13:27 ET

Russel Metals to Exceed Street Expectations for Second Quarter Earnings

TORONTO, ONTARIO--(Marketwire - June 11, 2008) - Russel Metals Inc. (TSX:RUS) announced today that the average analysts consensus earnings of $0.78 for the second quarter ended June 30, 2008 are understated by 35% to 45%. Russel Metals reported basic earnings per common share in the second quarter of 2007 of $0.47 and $0.46 in the first quarter of 2008.

On-going steel price increases have enhanced our margins in all three segments. Consistent demand in the service center segment and increased activity in areas serviced by our energy tubular products segment have favourably strengthened our projected results for the second quarter of 2008. The current economic conditions and uncertainty on the sustainability of the steel price increases make it difficult to project the earnings levels for the second half of 2008.

Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors, under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Metaux Russel Produits Specialises, Milspec Industries, Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.

Statements contained in this press release that relate to Russel Metals' beliefs or expectations as to certain future events are not statements of historical fact and are forward-looking statements. Russel Metals cautions readers that there are important factors, risks and uncertainties, including but not limited to economic, competitive and governmental factors affecting Russel Metals' operations, markets, products, services and prices that could cause its actual results, performance or achievements to be materially different from those forecasted or anticipated in such forward-looking statements.

The forward-looking statements in this document reflect management's current beliefs and are based on information currently available to management. The material assumptions applied in making the forward-looking statements in this document include the following: demand from the manufacturing, resource and construction segments of the Canadian economy will be consistent with what we experienced in the first five months of 2008, oil and gas prices will not change materially, the recent stability in the price of steel will either remain constant or increase, and the Canadian dollar will maintain recent gains while not appreciating significantly. Although the forward-looking statements contained in this document are based upon what management believes to be reasonable estimates and assumptions, Russel Metals cannot ensure that actual results will not be materially different from those expressed or implied by these forward-looking statements.

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