Russel Metals Inc., a steel processor and distributor, pared losses after falling the most in 11 months as the company reported earnings that missed expectations due to lower volume, especially in the oil and gas industry.
Russel fell 0.3 percent to C$26.89 at 4 p.m. in Toronto today after slumping as much as 3.6 percent earlier, the biggest intraday slide since June 2012. Shares in the Mississauga, Ontario-based company have dropped 2.6 percent this year.
The company yesterday reported adjusted earnings of 36 cents a share for the first quarter, short of analysts’ average estimates of 45 cents according to a Bloomberg survey and below 53 cents reported a year ago.
“The decline in volume in the first quarter impacted most sectors,” Brian Hedges, chief executive officer at Russel, said in a statement. “The drop in Canada was more severe than the U.S. and reflects the impact on the Canadian economy of the energy slowdown in Alberta for both the oil sands and conventional gas drilling activities.”
Russel distributes tubes and piping to the oil and gas industry, primarily in western Canada and the U.S.