November 8, 2000 Third Quarter Report To Shareholders 2000

Sales for the nine months to September 30, 2000 were $619.3 million, an increase of $28.2 million or 4.8% over the $591.1 million achieved in the comparable period of last year, while third quarter sales at $203.0 million, were $2.8 million or 1.4% ahead of last year.

Sales of the Packaging segment in the third quarter were $100.8 million which reflects an increase of $0.8 million over last year's $100.0 million. This increase was marginally above last year due to higher Canadian and U.S. sales which offset weakness in European markets. Metal Processing sales in the quarter at $77.5 million were virtually unchanged from last year with higher sales in the quarter from steel pickling and pressure vessels offset by lower sales of roll form products and stainless steel pipe and tube. WorldClass Processing, which was acquired effective June 22, 2000, contributed to the higher sales from steel pickling. Distribution sales for the quarter, at $24.7 million, were ahead 9.2% over last year due to higher sales at the U.S. unit.

Earnings before goodwill amortization for the first nine months of 2000 were $26.0 million or $0.76 per share, which is comparable to the $26.1 million or $0.76 per share earned last year. Net earnings for the nine months to September 30, 2000 were $24.6 million or $0.72 per share compared to $24.7 million or $0.72 per share earned last year. For the third quarter, earnings before goodwill amortization were $8.4 million or $0.25 per share, which represents a decrease of 10% from the $9.3 million or $0.27 earned last year. Net earnings for the third quarter were $7.9 million or $0.23 per share, a decrease of 10.5% from the $8.8 million or $0.26 per share earned last year.

Operating profits for the third quarter amounted to $14.4 million which is $1.9 million or 12% below last year. The Packaging segment had profits of $4.3 million which is 10.3% below the $4.8 million earned last year. Although the Canadian unit enjoyed strong results and profits were higher in the U.K., overall earnings were down because of the continuing under performance in the U.S. 

The Metal Processing segment turned in profits of $10.7 million which is a decrease of 12.8% from last year's $12.3 million. The major reason for the shortfall is a decline in earnings from roll formed products due to reduced sales of custom products to the railroad industry. Profits from Pickling operations were ahead of last year aided by a contribution from WorldClass Processing.

Distribution earnings for the quarter at $0.5 million are ahead of last year with both the Canadian and U.S. units contributing to the improvement. Earnings were, however, lower than those achieved in both the first and second quarters reflecting the impact of summer shutdowns and increased competition in the U.S.

On August 15, 2000, 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 1,713,277 Common Shares of Samuel Manu-Tech Inc. during the one-year period commencing August 19, 2000. For the quarter ended September 30, 2000, 276,500 shares were purchased under the current issuer bid as well as the Company's previous issuer bid which expired August 18, 2000.

It is expected that softening business conditions in many of the markets served by the Company will continue through the fourth quarter.

Mark C. Samuel
President and CEO
November 2000

Nine Months ended September 30, 2000 and 1999 (unaudited)
(thousands of dollars except per share amounts)

	3RD QUARTER		NINE MONTHS
	2000	1999		2000	1999
NET SALES	$  203,038	$  200,214		$  619,287	$  591,144
COSTS (INCOME) AND EXPENSES:
Cost of sales, selling and administration	181,712	177,758		554,029	525,312
Depreciation and amortization	6,946	6,124		19,862	18,243
Interest on long-term debt	3,131	2,908		8,784	8,952
Interest on short-term debt	450	306		1,107	896
Interest income	(92)	(59)		(259)	(140)
	192,147	187,037		583,523	553,263
EARNINGS BEFORE INCOME TAXES AND GOODWILL AMORTIZATION	10,891	13,177		35,764	37,881
PROVISION FOR INCOME TAXES	2,500	3,850		9,750	11,750
EARNINGS BEFORE GOODWILL AMORTIZATION	8,391	9,327		26,014	26,131
GOODWILL AMORTIZATION, net of income taxes	491	502		1,429	1,410
NET EARNINGS	$      7,900	$      8,825		$    24,585	$    24,721
EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION	$        0.25	$        0.27		$        0.76	$        0.76
NET EARNINGS PER SHARE	$        0.23	$        0.26		$        0.72	$        0.72

Nine Months ended September 30, 2000 and 1999 (unaudited)
(thousands of dollars)

	3RD QUARTER		NINE MONTHS
NET SALES	2000	1999		2000	1999
Packaging	$  100,790	$   100,004		$    312,460	$   297,716
Metal Processing	77,521	77,562		229,070	228,890
Distribution	24,727	22,648		77,757	64,538
Consolidated	$  203,038	$   200,214		$    619,287	$   591,144

	3RD QUARTER		NINE MONTHS
EARNINGS BEFORE INTEREST AND GOODWILL AMORTIZATION	2000	1999		2000	1999
Packaging	$    4,338	$     4,834		$    13,713	$    14,971
Metal Processing	10,722	12,307		31,981	37,265
Distribution	545	290		2,854	(1,312)
Corporate	(1,225)	(1,099)		(3,152)	(3,335)
Consolidated	$  14,380	$   16,332		$  45,396	$    47,589

September 30, 2000 and 1999 (unaudited)
(thousands of dollars)

	2000	1999
ASSETS
CURRENT ASSETS:
Cash and short-term deposits	$      4,555	$       3,819
Accounts receivable	128,499	122,897
Inventories	157,336	142,007
Prepaids and sundry	4,528	3,856
	294,918	272,579
FIXED ASSETS	208,175	182,385
DEFERRED PENSION COSTS	4,322	4,462
INTANGIBLE ASSETS	51,515	55,472
	$   558,930	$   514,898
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank indebtedness	$     33,081	$     14,391
Accounts payable and accrued liabilities	99,782	101,192
Dividends payable	1,716	1,395
Income taxes payable	2,360	1,010
Current portion of long-term debt	12,028	12,425
	148,967	130,413
LONG-TERM DEBT	158,764	150,931
POST-RETIREMENT BENEFITS
OTHER THAN PENSIONS	3,865	4,186
FUTURE INCOME TAXES	13,644	6,001
	325,240	291,531
SHAREHOLDERS' EQUITY:
Capital stock	27,508	27,945
Retained earnings	200,764	186,824
Cumulative translation adjustment	5,418	8,598
	233,690	223,367
	$   558,930	$   514,898

Number of common shares outstanding	33,989,040	34,529,140
Number of options outstanding	459,000	215,000

Effective January 1, 2000 the Company adopted the new recommendations of the CICA with respect to accounting for income taxes and accounting for employee future benefits. The cumulative effect of adopting the liability method of tax allocation, on a retroactive basis without restating the financial statements of prior periods, was a decrease to retained earnings of $10,004, an increase to the cumulative translation adjustment of $503 and an increase to future income taxes of $9,501. The effect of adopting the recommendation with respect to employee future benefits, on a prospective basis, was not material.

Nine Months ended September 30, 2000 and 1999 (unaudited)
(thousands of dollars)

	2000	1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$    24,585	$       24,721
Items not involving cash:
Depreciation and amortization	19,862	18,243
Goodwill amortization	1,779	1,810
Increase (decrease) in future income taxes	(137)	544
Increase in deferred pension costs	(255)	(951)
Decrease in post-retirement benefits other than pensions	(323)	(504)
	45,511	43,863
Change in non-cash operating working capital:
Increase in accounts receivable	(10,062)	(15,993)
Decrease (increase) in inventories	(9,423)	12,081
Increase in prepaids and sundry	(136)	(387)
Increase in accounts payable and accrued liabilities	5,336	18,872
Decrease in income taxes payable	(1,466)	(371)
	29,760	58,065
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds on sale of fixed assets	1,324	2,869
Gain on disposal of fixed assets	283	--
Purchase of fixed assets and intangible assets	(17,564)	(15,253)
Business acquisition	(26,886)	(3,444)
	(42,843)	(15,828)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of common shares	(3,019)	(126)
Increase in long term debt	17,136	4,704
Repayment of long term debt	(14,357)	(17,100)
Dividends paid on common shares	(5,129)	(4,145)
	(5,369)	(16,667)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(549)	491
INCREASE (DECREASE) IN CASH DURING THE PERIOD	(19,001)	26,061
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	(9,525)	(36,633)
CASH AND CASH EQUIVALENTS, END OF PERIOD	$    (28,526)	$    (10,572)

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

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