Samuel Manu-Tech Inc. - First Quarter Report To Shareholders 1997

April 24, 1997

First Quarter Report To Shareholders

Sales for the three months to March 31, 1997 were $154.8 Million, an increase of 46.6% over the $105.6 million achieved in the comparable period of last year. Results the first quarter include the sales of Wilton Packaging and those of the Interlake Packaging businesses which were acquired effectively January 31, 1996 and September 30, 1996 respectively.

Earnings for the first quarter were $7.2 million or $0.42 per share, an improvement of 23.6% over the $5.8 million or $0.34 per share achieved in the comparable quarter of last year.

At the Strapping Group, operating profits during the first quarter were substantially ahead of last year despite start-up costs incurred at the new polyester manufacturing facility based in Fort Mill, South Carolina. These costs negatively impacted earnings in the quarter by $0.04 per share. The Steel Pickling and Roll Form Groups together with the Steel Fab Division also turned in strong performances during the quarter with these results offsetting lower earnings at the Associated Tube Industries and Unalloy-IWRC Divisions where profitability continues to be impacted by low stainless steel prices and a highly competitive market place.

The outlook for the balance of the year continues to be positive.


Mark C. Samuel
President
April 24, 1997

CONSOLIDATED FINANCIAL SUMMARY
Three Months Ended March 31, 1997 (unaudited)
(thousands of dollars except per share amounts)



Consolidated Statement of Earnings	1ST QUARTER


	1997	1996


Net Sales	$154,802	$105,556
Costs (Income) and Expenses:
Cost of sales, selling and administration	136,671	92,962
Depreciation and amortization	5,317	2,889
Interest on long-term debt	2,162	432
Interest on short-term debt	81	391
Interest income	(50)	(108)

	144,181	96,566

Earnings Before Income Taxes	10,621	8,990
Provision for Income Taxes	3,400	3,150

Net Earnings	$7,221	$5,840

Earnings per Share	$0.42	$0.34





Consolidated Statement of Changes in Financial Position	1997	1996


Cash Provided by (Used in):
Operating Activities:
Net Earnings	$7,221	$5,840
Items not involving cash:
Depreciation and amortization	5,317	2,889
Deferred income taxes	150	170

	12,688	8,899
Change in non-cash operating working capital:
Accounts receivable	(12,023)	(4,626)
Inventories	(4,907)	(1,683)
Prepaids and sundry	2,649	(1,725)
Accounts payable and accrued liabilities	5,677	10,464
Income taxes payable	(238)	(2,690)

	3,846	8,639
Investing Activities:
Proceeds on sale of fixed assets	87	215
Purchase of fixed assets	(7,155)	(3,410)
Deferred pension costs	66
Cumulative translation adjustment	625	(174)
Business acquisitions		(8,831)

	(6,377)	(12,200)
Financing Activities:
Increase (decrease) in long-term debt, net	(4,835)	(1,821)
Decrease in post-retirement benefits other than pensions	(134)

	(4,969)	(1,821)
Dividends Paid on Common Shares	(1,383)	(1,383)

Decrease in cash during the period	(8,883)	(3,123)
Cash and Cash Equivalents, Beginning of Period	5,098	326

Cash and Cash Equivalents, End of Period	$(3,785)	$(2,797)

Cash and cash equivalents is comprised of cash less bank indebtedness.

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