July 29, 1999 Second Quarter Report To Shareholders 1999

Sales for the six months to June 30, 1999 were $390.9 million, an increase of $28.0 million or 7.7% over the $362.9 million achieved in the comparable period of last year, while second quarter sales at $198.5 million, were $10.9 million or 5.8% ahead of last year.

Sales of the Packaging segment in the second quarter were $100.5 million which reflects an improvement of 9.2% over last year's $92.0 million. This increase was due to higher Canadian and U.S. sales which offset continued weakness in European markets. Metal Processing sales were up 1% in the quarter to $76.2 million, primarily due to higher pickling volumes arising from the new Glover Road line in Stoney Creek, Ontario which more than offset lower sales of stainless pipe and roll formed products. Distribution sales for the quarter, at $21.9 million, were ahead 8.6% over last year due to higher sales at the U.S. unit.

Earnings for the first half of 1999 were $15.9 million or $0.46 per share, which represents an increase of 16.4% over the $13.7 million or $0.39 per share earned last year. For the second quarter, earnings were $8.6 million or $0.25 per share, an increase of 15.6% over the $7.5 million or $0.21 per share earned last year.

Operating profits for the second quarter amounted to $15.9 million which is $1.4 million or 9.4% above last year. The Packaging segment had profits of $5.3 million which is substantially ahead of the $1.4 million earned last year. This increase in profits is encouraging and reflects a continuation of the trend to improved profitability reported in the first quarter. The higher profits were recorded in all geographic areas with the greatest improvement in the U.S. which last year operated at a loss. The Metal Processing segment turned in profits of $12.5 million which is a decrease of 12.4% from last year's $14.2 million. The major reason for this decrease was lower earnings at the stainless products unit due to a highly competitive pipe market while profitability from roll formed products also declined due primarily to lower sales to the railroad industry. The Distribution segment incurred a loss of $0.7 million in the quarter compared to a loss of $0.4 million last year. The major reason for this performance continues to be the U.S. unit although there were encouraging signs late in the quarter arising from higher sales and improved margins.

Effective June 1, 1999, Samuel Steel Pickling, our U.S. pickling partnership, acquired the 15.79% interest held by a minority partner. As a result the Company's ownership interest in the partnership increased from 57.89% to 68.75%. Our share of the purchase cost amounts to $3.4 million.

The outlook for the second half of 1999 remains positive. The Packaging segment is expected to continue to improve its profitability, Metal Processing profits should remain stable and the Distribution segment should achieve at least a breakeven performance.

With regard to Year 2000 readiness, the Company's Y2K Management Steering Committee has reported that there are only a few minor outstanding projects and that these will be completed in the third quarter of 1999. In addition, work is continuing on the development and refinement of a contingency plan covering all of our critical systems. The overall plan is scheduled to be completed and implemented in the third and fourth quarters respectively. Based on the work done to date by the Committee, we do not anticipate that the Year 2000 will have any significant impact on our ongoing operations or pose any significant risks that will compromise our ability to maintain normal operations in the Year 2000 and beyond. In spite of our efforts to date, however, it's not possible to be certain that all aspects of the Year 2000 affecting the Company, including those outside our direct control, will be fully resolved by year end.

Mark C. Samuel
President
July 29, 1999

Six Months ended June 30, 1999 and 1998 (unaudited)
(thousands of dollars except per share amounts)

	2ND QUARTER		SIX MONTHS
	1999	1998		1999	1998
NET SALES	$  198,537	$  187,639		$  390,930	$  362,893
COSTS (INCOME) AND EXPENSES:
Cost of sales, selling and administration	175,884	167,015		347,554	323,775
Depreciation and amortization	6,774	6,105		13,327	12,183
Interest on long-term debt	2,948	2,954		6,044	5,808
Interest on short-term debt	333	447		590	745
Interest income	(50)	(15)		(81)	(26)
	185,889	176,506		367,434	342,485
EARNINGS BEFORE INCOME TAXES	12,648	11,133		23,496	20,408
PROVISION FOR INCOME TAXES	4,000	3,650		7,600	6,750
NET EARNINGS	$     8,648	$     7,483		$     15,896	$     13,658
EARNINGS PER SHARE	$       0.25	$       0.21		$         0.46	$         0.39

Six Months ended June 30, 1999 and 1998 (unaudited)
(thousands of dollars)

	2ND QUARTER		SIX MONTHS
NET SALES	1999	1998		1999	1998
Packaging	$    100,475	$    92,048		$    197,712	$    185,440
Metal Processing	76,204	75,466		151,329	139,955
Distribution	21,858	20,125		41,889	37,498
Consolidated	$  198,537	$  187,639		$    390,930	$    362,893

	2ND QUARTER		SIX MONTHS
EARNINGS (LOSS) BEFORE INTEREST	1999	1998		1999	1998
Packaging	$    5,275	$    1,410		$    8,941	$    3,875
Metal Processing	12,469	14,237		24,958	25,493
Distribution	(687)	(414)		(1,602)	(410)
Corporate	(1,178)	(714)		(2,248)	(2,023)
Consolidated	$  15,879	$  14,519		$  30,049	$   26,935

June 30, 1999 and 1998 (unaudited)
(thousands of dollars)

	1999	1998
ASSETS
CURRENT ASSETS:
Cash and short-term deposits	$      10,739	$      5,190
Accounts receivable	118,711	113,328
Inventories	143,860	162,802
Prepaids and sundry	2,708	6,194
	276,018	287,514
FIXED ASSETS	185,565	175,796
DEFERRED PENSION COSTS	3,946	2,990
INTANGIBLE ASSETS	56,122	60,848
	$   521,651	$   527,148
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank indebtedness	$     26,110	$     50,218
Accounts payable and accrued liabilities	95,447	94,238
Dividends payable	1,395	1,394
Income taxes payable	1,062	1,792
Current portion of long-term debt	13,243	1,984
	137,257	149,626
LONG-TERM DEBT	160,041	168,768
POST-RETIREMENT BENEFITS
OTHER THAN PENSIONS	4,382	4,918
DEFERRED INCOME TAXES	5,820	6,164
	307,500	329,476
SHAREHOLDERS' EQUITY:
Capital stock	27,958	27,981
Retained earnings	179,493	159,660
Cumulative translation adjustment	6,700	10,031
	214,151	197,672
	$   521,651	$   527,148

Six Months ended June 30, 1999 and 1998 (unaudited)
(thousands of dollars)

	1999	1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$    15,896	$    13,658
Items not involving cash:
Depreciation and amortization	13,327	12,183
Deferred income taxes	363	453
Increase in deferred pension costs	(613)	(16)
Decrease in post-retirement benefits other than pensions	(294)	(195)
	28,679	26,083
Change in non-cash operating working capital:
Increase in accounts receivable	(12,396)	(12,540)
(Increase) decrease in inventories	9,412	(12,372)
(Increase) decrease in prepaids and sundry	737	(3,912)
Increase in accounts payable and accrued liabilities	13,692	15,444
Decrease in income taxes payable	(280)	(942)
	39,844	11,761
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds on sale of fixed assets	766	357
Purchase of fixed assets and intangible assets	(11,754)	(19,430)
Business acquisition	(3,444)	(7,984)
	(14,432)	(27,057)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of common shares	--	(153)
Increase in long term debt	3,850	13,351
Repayment of long term debt	(5,632)	(11,590)
Dividends paid on common shares	(2,764)	(2,767)
	(4,546)	(1,159)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	396	1,466
INCREASE (DECREASE) IN CASH DURING THE PERIOD	21,262	(14,989)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	(36,633)	(30,039)
CASH AND CASH EQUIVALENTS, END OF PERIOD	$    (15,371)	$    (45,028)

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

The Consolidated Cash Flow Statements have been prepared in conformity with the new CICA Handbook section 1540.  The comparative figures for 1998 have been restated to be consistent with the method adopted in 1999.

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