April 28, 1999 First Quarter Report To Shareholders 1999

Sales for the three months to March 31, 1999 were $192.4 million, an increase of $17.1 million or 9.8% over the $175.3 million achieved in the comparable period of last year. Sales of the Packaging segment were $97.2 million which reflects an improvement of 4.1% over last year's $93.4 million. Although aggregate sales were in line with expectations, higher Canadian and U.S. sales offset continued weakness in European markets. Metal Processing sales were up 16.5% in the quarter to $75.1 million aided by higher pickling volumes as a result of the commissioning in the quarter of the new Glover Road line in Stoney Creek, Ontario, as well as strong sales of roll formed products. Distribution sales for the quarter, at $20.0 million, were ahead 15.3% over last year primarily due to including sales for a full quarter of the U.S. unit, Energy Steel Products, which was acquired effective February 10, 1998.

Earnings for the first quarter were $7.2 million or $0.21 per share, which reflects an increase of 17.4% over the $6.2 million or $0.18 per share achieved in the comparable quarter of last year.

Operating profits for the quarter amounted to $14.2 million which is $1.8 million or 14.1% above last year. The Packaging segment had profits of $3.7 million which is $1.2 million or 48.7% higher than last year's $2.5 million. This improvement is due to the U.S. unit which experienced higher sales, primarily of steel strapping, and lower plastic manufacturing costs. The Metal Processing segment turned in a strong performance with profits of $12.5 million which represents an increase of 11% over last year's $11.3 million. Within this segment, profits from roll formed products were well ahead of last year due to continued strong demand from the railroad industry while earnings from pickling operations were down from the previous year due to start-up costs related to the new Glover Road line and reduced Technology income. The Distribution Segment incurred a loss of $0.9 million in the quarter compared to break-even earnings last year. Although softer than anticipated market conditions resulted in lower earnings in Canada compared to last year, the major reason for the loss in the quarter was the U.S. unit which continues to experience highly competitive business conditions and low margins.

The outlook for the second quarter is positive. The Packaging segment is expected to continue to improve its profitability while Metal Processing will remain strong. Although losses are expected again in the Distribution segment, it is anticipated that these will be at a lower level than during the first quarter.

Mark C. Samuel

President

April 28, 1999

Three Months ended March 31, 1999 and 1998 (unaudited)
(thousands of dollars except per share amounts)

	1ST QUARTER
	1999	1998
NET SALES	$   192,393	$  175,254
COSTS (INCOME) AND EXPENSES:
Cost of sales, selling and administration	171,670	156,760
Depreciation and amortization	6,553	6,078
Interest on long-term debt	3,096	2,854
Interest on short-term debt	257	298
Interest income	(31)	(11)
	181,545	165,979
EARNINGS BEFORE INCOME TAXES	10,848	9,275
PROVISION FOR INCOME TAXES	3,600	3,100
NET EARNINGS	$        7,248	$     6,175
NET EARNINGS PER SHARE	$          0.21	$       0.18

Three Months ended March 31, 1999 and 1998
(thousands of dollars)

	1ST QUARTER
NET SALES	1999	1998
Packaging	$    97,237	$    93,392
Metal Processing	75,125	64,489
Distribution	20,031	17,373
Consolidated	$  192,393	$  175,254

	1ST QUARTER
EARNINGS (LOSS) BEFORE INTEREST	1999	1998
Packaging	$     3,666	$     2,465
Metal Processing	12,489	11,256
Distribution	(915)	4
Corporate	(1,070)	(1,309)
Consolidated	$   14,170	$   12,416

March 31, 1999 and 1998 (unaudited)
(thousands of dollars)

	1999	1998
ASSETS
CURRENT ASSETS:
Cash and short-term deposits	$      6,393	$      2,808
Accounts receivable	117,404	108,710
Inventories	148,187	155,149
Prepaids and sundry	2,748	5,400
	274,732	272,067
FIXED ASSETS	187,776	166,430
DEFERRED PENSION COSTS	3,921	2,895
INTANGIBLE ASSETS	58,641	60,382
	$   525,070	$   501,774
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank indebtedness	$     35,460	$     43,306
Accounts payable and accrued liabilities	92,675	93,933
Dividends payable	1,395	1,395
Income taxes payable	1,493	1,535
Current portion of long-term debt	1,223	1,937
	132,246	142,106
LONG-TERM DEBT	173,792	160,093
POST-RETIREMENT BENEFITS
OTHER THAN PENSIONS	4,579	4,849
DEFERRED INCOME TAXES	5,638	5,938
	316,255	312,986
SHAREHOLDERS' EQUITY:
Capital stock	27,958	27,989
Retained earnings	172,227	153,706
Cumulative translation adjustment	8,630	7,093
	208,815	188,788
	$   525,070	$   501,774

Three Months ended March 31, 1999 and 1998 (unaudited)
(thousands of dollars)

	1999	1998
CASH PROVIDED BY (USED IN):
OPERATING ACTIVITIES:
Net earnings	$     7,248	$     6,175
Items not involving cash:
Depreciation and amortization	6,553	6,078
Deferred income taxes	181	227
Deferred pension costs	(226)	(43)
Post-retirement benefits other than pensions	(289)	(153)
	13,467	12,284
Change in non-cash operating working capital:
Accounts receivable	(8,812)	(9,216)
Inventories	9,313	(6,896)
Prepaids and sundry	793	(3,047)
Accounts payable and accrued liabilities	8,824	16,048
Income taxes payable	214	(1,172)
	23,799	8,001
INVESTING ACTIVITIES:
Proceeds on sale of fixed assets	100	192
Purchase of fixed assets and intangible assets	(4,605)	(7,158)
Cumulative translation adjustment	(2,433)	720
Business acquisition	--	(7,984)
	(6,938)	(14,230)
FINANCING ACTIVITIES:
Decrease in long-term debt, net	(7,913)	(2,847)
	(7,913)	(2,847)
DIVIDENDS PAID ON COMMON SHARES	(1,382)	(1,383)
INCREASE (DECREASE) IN CASH DURING THE PERIOD	7,566	(10,459)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	(36,633)	(30,039)
CASH AND CASH EQUIVALENTS, END OF PERIOD	$    (29,067)	$    (40,498)

Cash and cash equivalents is comprised of cash and short-term deposits less bank indebtedness.

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