November 15, 1999 Third Quarter Report To Shareholders 1999

Sales for the nine months to September 30, 1999 were $591.1 million, an increase of $40.1 million or 7.3% over the $551.0 million achieved in the comparable period of last year, while third quarter sales, at $200.2 million, were $12.1 million or 6.4% ahead of last year.

Sales of the Packaging segment in the third quarter were $100.0 million which reflects an improvement of 2.4% over last year's $97.7 million. This increase was due to higher Canadian and U.S. sales which offset continued weakness in European markets. Metal Processing sales were up 9.0% in the quarter to $77.6 million, aided by strong sales of Roll Formed products and higher pickling volumes arising from the new Glover Road line at Stoney Creek, Ontario. Distribution sales for the quarter, at $22.6 million, were ahead 17.3% over last year due to higher sales at the U.S. unit.

Earnings before goodwill amortization for the nine months of 1999 were $26.1 million or $0.76 per share, which represents an increase of 23.6% over the $21.1 million or $0.61 per share earned last year. Net earnings for the nine months to September 30, 1999 were $24.7 million or $0.72 per share, an increase of 25.2% over the $19.7 million or $0.57 per share earned last year. For the third quarter, earnings before goodwill amortization were $9.3 million or $0.27 per share, which represents an increase of 41.7% over the $6.5 million or $0.19 per share earned last year. Net earnings for the third quarter were $8.8 million or $0.26 per share, an increase of 45.1% over the $6.1 million or $0.18 per share earned last year.

Operating profits for the third quarter amounted to $16.3 million which is $3.6 million or 27.9% above last year. The Packaging segment had profits of $4.8 million which represents an increase of 80.8% over the $2.7 million earned last year. Higher profits were recorded in all geographic areas with the most significant improvement coming in the U.S. which last year operated at a break-even level for the quarter. The Metal Processing segment achieved another strong performance with profits of $12.3 million which represents an increase of 1.5% from last year's $12.1 million. Increased profits from Roll Formed products was the major reason for this improvement. The Distribution segment turned in a profit of $0.3 million in the quarter compared to a loss of $1.0 million last year. The major reason for the improved results was at the U.S. unit as a result of higher sales and improved margins.

On August 12, 1999, the Company issued a press release announcing that it had filed with The Toronto Stock Exchange a Notice of Intention to make a Normal Course Issuer Bid for its common shares. The Company is entitled to purchase up to 1,036,336 common shares of Samuel Manu-Tech Inc. during the one-year period commencing August 19, 1999. For the quarter ended September 30, 1999, 15,400 shares were purchased under the Issuer Bid.

The outlook for the fourth quarter of 1999 remains positive. Metal Processing profits should remain strong while the Packaging and Distribution segments are expected to achieve improved results compared to the fourth quarter of last year.

With regard to Year 2000 readiness, the Company's Y2K Management Steering Committee has reported that all remaining outstanding projects were successfully completed on schedule in the third quarter of 1999. In addition, a contingency plan covering all critical systems was developed and implemented in October 1999. 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 is not possible to be certain that all aspects of the Year 2000 affecting the Company, including those related to the efforts of our customers and suppliers, will be fully resolved by year end. The Committee will continue to meet on a regular monthly basis throughout the balance of 1999 and 2000 to ensure that any Y2K issues that may arise are fully addressed.

Mark C. Samuel
President
November 15, 1999

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

	3RD QUARTER		NINE MONTHS
	1999	1998		1999	1998
NET SALES	$  200,214	$  188,091		$  591,144	$  550,984
COSTS (INCOME) AND EXPENSES:
Cost of sales, selling and administration	177,758	169,538		525,312	493,313
Depreciation and amortization	6,124	5,785		18,243	16,786
Interest on long-term debt	2,908	2,842		8,952	8,650
Interest on short-term debt	306	518		896	1,263
Interest income	(59)	(37)		(140)	(63)
	187,037	178,646		553,263	519,949
EARNINGS BEFORE INCOME TAXES AND GOODWILL AMORTIZATION	13,177	9,445		37,881	31,035
PROVISION FOR INCOME TAXES	3,900	2,900		11,750	9,900
EARNINGS BEFORE GOODWILL AMORTIZATION	9,277	6,545		26,131	21,135
GOODWILL AMORTIZATION, net of income taxes	452	461		1,410	1,393
NET EARNINGS	$      8,825	$     6,084		$    24,721	$     19,742
EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION	$        0.27	$       0.19		$        0.76	$         0.61
NET EARNINGS PER SHARE	$        0.26	$       0.18		$        0.72	$         0.57

The Company has adopted the CICA's new disclosure recommendations with respect to goodwill amortization, which permits the entity to present goodwill amortization on a net-of-tax basis as a separate line item in the income statement. The comparative figures for 1998 have been restated to be consistent with the presentation adopted in 1999.

Nine Months ended September 30, 1999 and 1998 (unaudited)
(thousands of dollars)

	3RD QUARTER		NINE MONTHS
NET SALES	1999	1998		1999	1998
Packaging	$   100,004	$    97,661		$   297,716	$    283,101
Metal Processing	77,562	71,130		228,890	211,085
Distribution	22,648	19,300		64,538	56,798
Consolidated	$   200,214	$  188,091		$   591,144	$    550,984

	3RD QUARTER		NINE MONTHS
EARNINGS (LOSS) BEFORE INTEREST AND GOODWILL AMORTIZATION	1999	1998		1999	1998
Packaging	$     4,834	$    2,674		$    14,971	$    7,719
Metal Processing	12,307	12,125		37,265	37,618
Distribution	290	(1,011)		(1,312)	(1,421)
Corporate	(1,099)	(1,020)		(3,335)	(3,031)
Consolidated	$   16,332	$  12,768		$    47,589	$  40,885

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

	1999	1998
ASSETS
CURRENT ASSETS:
Cash and short-term deposits	$       3,819	$      3,888
Accounts receivable	122,897	118,701
Inventories	142,007	162,459
Prepaids and sundry	3,856	4,992
	272,579	290,040
FIXED ASSETS	182,385	186,002
DEFERRED PENSION COSTS	4,462	3,252
INTANGIBLE ASSETS	55,472	61,923
	$   514,898	$   541,217
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank indebtedness	$     14,391	$     50,592
Accounts payable and accrued liabilities	101,192	98,629
Dividends payable	1,395	1,393
Income taxes payable	1,010	999
Current portion of long-term debt	12,425	1,659
	130,413	153,272
LONG-TERM DEBT	150,931	170,227
POST-RETIREMENT BENEFITS
OTHER THAN PENSIONS	4,186	4,929
DEFERRED INCOME TAXES	6,001	6,391
	291,531	334,819
SHAREHOLDERS' EQUITY:
Capital stock	27,945	27,959
Retained earnings	186,824	164,100
Cumulative translation adjustment	8,598	14,339
	223,367	206,398
	$   514,898	$   541,217

Nine Months ended September 30, 1999 and 1998 (unaudited)
(thousands of dollars)

	1999	1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$       24,721	$       19,742
Items not involving cash:
Depreciation and amortization	18,243	16,786
Goodwill amortization	1,810	1,793
Deferred income taxes	544	680
Increase in deferred pension costs	(951)	(52)
Decrease in post-retirement benefits other than pensions	(504)	(369)
	43,863	38,580
Change in non-cash operating working capital:
Increase in accounts receivable	(15,993)	(15,729)
(Increase) decrease in inventories	12,081	(8,576)
Increase in prepaids and sundry	(387)	(2,491)
Increase in accounts payable and accrued liabilities	18,872	18,191
Decrease in income taxes payable	(371)	(1,668)
	58,065	28,307
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds on sale of fixed assets	2,869	410
Purchase of fixed assets and intangible assets	(15,253)	(30,634)
Business acquisition	(3,444)	(7,984)
	(15,828)	(38,208)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of common shares	(126)	(438)
Increase in long-term debt	4,704	13,351
Repayment of long term debt	(17,100)	(17,695)
Dividends paid on common shares	(4,145)	(4,148)
	(16,667)	(8,930)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	491	2,166
INCREASE (DECREASE) IN CASH DURING THE PERIOD	26,061	(16,665)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	(36,633)	(30,039)
CASH AND CASH EQUIVALENTS, END OF PERIOD	$    (10,572)	$     (46,704)

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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