February 29, 2000 Fourth Quarter Report To Shareholders 1999

Sales for the year to December 31, 1999 were $793.4 million, an increase of $57.9 million or 7.9% over the $735.5 million achieved in 1998, while fourth quarter sales, at $202.2 million were $17.7 million or 9.6% ahead of last year, a record for the Company.

Sales of the Packaging Segment in the fourth quarter were $104.3 million which reflects an improvement of 11.1% over last year's $93.9 million. Although increased sales were experienced in all areas, the major growth took place in Canada and Europe. Metal Processing sales were up 5.4% in the quarter primarily due to higher pickling volumes at both the Canadian and U.S. units. Distribution sales for the quarter, at $21.4 million, were ahead 18.6% over last year due to higher sales at the U.S. unit.

Earnings before goodwill amortization for the year to December 31, 1999 were $35.7 million or $1.03 per share which represents an increase of 41% over the $25.3 million or $0.73 per share earned last year. Net earnings for the year were $33.8 million or $0.98 per share, an increase of 44.4% over the $23.4 million or $0.68 per share earned last year and also a record for the Company. For the fourth quarter, earnings before goodwill amortization were $9.5 million or $0.27 per share, which represents an increase of 128.7% over the $4.2 million or $0.12 per share last year. Net earnings for the fourth quarter were $9.0 million or $0.26 per share, an increase of 147.8% over the $3.7 million or $0.11 per share earned last year.

Operating profits for the fourth quarter amounted to $17.5 million which is $9.0 million or 106.2% above last year. The Packaging segment had profits of $6.0 million which represents a substantial improvement over the loss of $0.1 million incurred last year. There was an improvement in profitability in all geographic areas this year compared to last year when both the U.S. and European units operated at a loss. The Metal Processing segment achieved another strong performance with profits of $12.4 million which represents an increase of 3% over last year's $12.0 million. Higher profits from steel pickling was the major reason for the improvement.

The Distribution segment turned in a profit of $0.2 million in the quarter compared to a loss of $2.4 million last year. The major reason for the improved results was the U.S. unit which achieved both higher sales and margins.

Overall, the Company anticipates that its positive performance will carry forward into the first quarter of 2000.

Further details on the results for the year will be included in the annual report to be mailed to all shareholders in late March of 2000.

Mark C. Samuel
President
February 29, 2000

Twelve Months ended December 31, 1999 and 1998
(thousands of dollars except per share amounts)

	4TH QUARTER		TWELVE MONTHS
	1999	1998		1999	1998
NET SALES	$  202,210	$  184,491		$  793,354	$  735,475
COSTS (INCOME) AND EXPENSES:
Cost of sales, selling & administration	178,828	170,558		704,140	663,871
Depreciation and amortization	5,864	5,436		24,107	22,222
Interest on long-term debt	2,811	3,128		11,763	11,778
Interest on short-term debt	250	177		1,146	1,440
Interest income	(39)	(53)		(179)	(116)
	187,714	179,246		740,977	699,195
EARNINGS BEFORE INCOME TAXES AND GOODWILL AMORTIZATION	14,496	5,245		52,377	36,280
PROVISION FOR INCOME TAXES	4,950	1,071		16,700	10,971
EARNINGS BEFORE GOODWILL AMORTIZATION	9,546	4,174		35,677	25,309
GOODWILL AMORTIZATION, net of income taxes	499	523		1,909	1,916
NET EARNINGS	$      9,047	$     3,651		$    33,768	$     23,393
EARNINGS PER SHARE BEFORE GOODWILL AMORTIZATION	$        0.27	$       0.12		$        1.03	$         0.73
NET EARNINGS PER SHARE	$        0.26	$       0.11		$        0.98	$         0.68

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.

Twelve Months ended December 31, 1999 and 1998
(thousands of dollars)

	4TH QUARTER		TWELVE MONTHS
NET SALES	1999	1998		1999	1998
Packaging	$   104,318	$    93,912		$   402,034	$    377,013
Metal Processing	76,471	72,523		305,361	283,608
Distribution	21,421	18,056		85,959	74,854
Consolidated	$   202,210	$  184,491		$   793,354	$    735,475

	4TH QUARTER		TWELVE MONTHS
EARNINGS (LOSS) BEFORE INTEREST AND GOODWILL AMORTIZATION	1999	1998		1999	1998
Packaging	$     5,970	$     (121)		$    20,941	$    7,598
Metal Processing	12,359	12,005		49,624	49,623
Distribution	168	(2,372)		(1,144)	(3,793)
Corporate	(979)	(1,015)		(4,314)	(4,046)
Consolidated	$   17,518	$   8,497		$    65,107	$  49,382

December 31, 1999 and 1998
(thousands of dollars)

	1999	1998
ASSETS
CURRENT ASSETS:
Cash and short-term deposits	$       8,538	$       2,609
Accounts receivable	115,139	108,592
Inventories	145,300	157,500
Prepaids and sundry	4,134	3,541
	273,111	272,242
FIXED ASSETS	180,529	187,768
DEFERRED PENSION COSTS	4,282	3,695
INTANGIBLE ASSETS	53,612	60,697
	$   511,534	$   524,402
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank indebtedness	$     18,063	$     39,242
Accounts payable and accrued liabilities	90,013	83,434
Dividends payable	1,392	1,394
Income taxes payable	1,611	1,279
Current portion of long-term debt	12,221	1,641
	123,300	126,990
LONG-TERM DEBT	149,025	181,705
POST-RETIREMENT BENEFITS
OTHER THAN PENSIONS	4,050	4,868
DEFERRED INCOME TAXES	6,624	5,457
	282,999	319,020
SHAREHOLDERS' EQUITY:
Capital stock	27,882	27,958
Retained earnings	193,957	166,361
Cumulative translation adjustment	6,696	11,063
	228,535	205,382
	$   511,534	$   524,402

Twelve Months ended December 31, 1999 and 1998
(thousands of dollars)

	1999	1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$       33,768	$       23,393
Items not involving cash:
Depreciation and amortization	24,107	22,222
Goodwill amortization	2,409	2,416
Deferred income taxes	1,167	(254)
Increase in deferred pension costs	(938)	(581)
Decrease in post-retirement benefits other than pensions	(582)	(438)
	59,931	46,758
Change in non-cash operating working capital:
Increase in accounts receivable	(9,285)	(6,005)
(Increase) decrease in inventories	7,156	(4,130)
Increase in prepaids and sundry	(717)	(1,080)
Increase in accounts payable and accrued liabilities	8,458	3,512
Increase (decrease) in income taxes payable	241	(1,404)
	65,784	37,651
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds on sale of fixed assets	2,958	1,095
(Gain)/loss on disposal of fixed assets	136	(152)
Purchase of fixed assets and intangible assets	(20,753)	(38,348)
Business acquisition	(3,444)	(7,984)
	(21,103)	(45,389)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of common shares	(725)	(447)
Increase in long-term debt	5,393	10,193
Repayment of long term debt	(17,119)	(3,789)
Dividends paid on common shares	(5,523)	(5,530)
	(17,974)	427
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	401	717
INCREASE (DECREASE) IN CASH DURING THE PERIOD	27,108	(6,594)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	(36,633)	(30,039)
CASH AND CASH EQUIVALENTS, END OF PERIOD	$    (9,525)	$     (36,633)

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.

Return to main Financial Information page...