TORONTO, April 13, 2020 /PRNewswire/ - Russel Metals Inc.
(RUS - TSX)
Dear Fellow Shareholders,
Today, we find ourselves facing an unprecedented world health
crisis and an oil cartel price war. During difficult times we learn
the most about ourselves, as everyone is thrust into a leadership
role. I am proud to say that our entire team has risen to the
challenge. I want to thank our Russel family, health care workers,
elected officials, public service employees, grocery and service
workers plus so many others who are selflessly serving our
communities on the frontlines daily as we battle this pandemic
together.
First and foremost, we maintain an unwavering commitment and
dedication to the health and safety of every member of our Russel
team and our valued partners. It is uplifting to see the
leadership being demonstrated at every level of our organization as
we adjust to the new reality. The Russel family is proving
what we have always said; our people are truly our most important
asset and they are what separates us from our peers, today and into
the future. We can take pride in knowing that our culture remains
intact and protects the wellbeing of the Russel family and
ultimately our shareholders as we navigate this environment.
We have been deemed an essential service to our communities. Our
business units continue to operate in all segments, with some
employees working from home and others coming into our facilities
daily. Your company serves critical industries such as
utilities, defense, energy, construction and manufacturing
(including health care). We are an integral part of the
supply chain and a key contributor as Canada and the
United States recover.
Our metals service center and steel distributor operations
represent the largest portion of our business while the balance
serves the North American energy sector. The sudden shift in
direction by OPEC's Saudi Arabia
and Russia from balancing
production to ramping up supply has led to the collapse of oil
prices. We have seen energy prices drop before and our
flexible operating structure has proven sound. We are working
tirelessly to navigate this difficult environment.
The oil price collapse and pandemic uncertainty is a
challenge. During downturns, we have a proven ability to
generate cash, which solidifies our balance sheet. Our model of
conservative capital management, decentralized decision making and
pay for performance compensation afford us the ability to react
quickly and reduce operating costs during a downturn. We entered
2020 in a position of financial strength and have a solid
foundation to weather these challenges. While we realize the
short-term impact on our share price, know that we remain
unwavering in our focus on long-term shareholder returns as we
press forward.
Personally, I want to encourage everyone to take great
precautions to ensure your health and the well-being of those
around you. Society is experiencing a wide range of anxiety and
trepidation as the world confronts something never seen before, but
I am confident we will get through this together.
Stay Safe and Stay Healthy!
(signed)
John G. Reid
President and CEO
Russel Metals
About Russel Metals
Russel Metals is one of the largest metals distribution companies
in North America. It carries on business in three metals
distribution segments: metals service centers, energy products and
steel distributors, under various names including Russel Metals,
A.J. Forsyth, Acier Leroux, Acier Wirth, Alberta Industrial Metals,
Apex Distribution, Apex Monarch, Apex Valve Services, Apex Western
Fiberglass, Arrow Steel Processors, B&T Steel, Baldwin
International, Color Steels, Comco Pipe & Supply, Couleur
Aciers, DuBose Steel, Elite Supply
Partners, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, Mégantic Métal, Métaux Russel,
Métaux Russel Produits Spécialisés, Milspec, Norton Metals, Pemco
Steel, Pioneer Pipe, Russel Metals Processing, Russel Metals
Specialty Products, Russel Metals Williams Bahcall, Spartan Energy
Tubulars, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.
Cautionary Statement on Forward-Looking Information
Certain statements contained in this press release constitute
forward-looking statements or information within the meaning of
applicable securities laws, including statements as to our future
capital expenditures, our outlook, the availability of future
financing and our ability to pay dividends. Forward-looking
statements relate to future events or our future performance.
All statements, other than statements of historical fact, are
forward-looking statements. Forward-looking statements are
often, but not always, identified by the use of words such as
"seek", "anticipate", "plan", "continue", "estimate", "expect",
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe" and similar
expressions. Forward-looking statements are necessarily based
on estimates and assumptions that, while considered reasonable by
us, inherently involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements, including the factors described below.
We are subject to a number of risks and uncertainties which
could have a material adverse effect on our future profitability
and financial position, including the risks and uncertainties
listed below, which are important factors in our business and the
metals distribution industry. Such risks and uncertainties
include, but are not limited to: the volatility in metal prices;
volatility in oil and natural gas prices; cyclicality of the metals
industry; decreased capital expenditures in the energy industry;
pandemics and epidemics; climate change; product claims;
significant competition; sources of metals supply; manufacturers
selling directly; material substitution; credit risks; currency
exchange risk; restrictive debt covenants; non-cash asset
impairments; the unexpected loss of key individuals; decentralized
operating structure; future acquisitions; the failure of our key
computer-based systems, labour disruptions; litigious environment;
environmental liabilities; carbon emissions; health and safety laws
and regulations; and common share risks.
While we believe that the expectations reflected in our
forward-looking statements are reasonable, no assurance can be
given that these expectations will prove to be correct, and our
forward-looking statements included in this press release should
not be unduly relied upon. These statements speak only as of
the date of this press release and, except as required by law, we
do not assume any obligation to update our forward-looking
statements. Our actual results could differ materially from
those anticipated in our forward-looking statements including as a
result of the risk factors described above and under the heading
"Risk" in our MD&A and under the heading "Risk Management and
Risks Affecting Our Business" in our most recent Annual Information
Form and as otherwise disclosed in our filings with securities
regulatory authorities which are available on SEDAR at
www.sedar.com.
If you would like to unsubscribe from receiving Press
Releases, you may do so by emailing info@russelmetals.com; or by
calling our Investor Relations Line: 905-816-5178.
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SOURCE Russel Metals Inc.