| **Management's Report to the Shareholders** |
|---------------------------------------------|
| The accompanying consolidated financial statements, management's discussion and analysisand all information in the Annual Report have been prepared by management and approved by the Audit Committee and the Board ofDirectors of the Company.  The consolidated financial statements were prepared in accordance with Canadian generally acceptedaccounting principles and, where appropriate, reflect management's best estimates and judgements.  Management is responsiblefor the accuracy, integrity and objectivity of the consolidated financial statements and management's discussion and analysiswithin reasonable limits of materiality and for the consistency of financial data included in the text of the Annual Report withthat contained in the consolidated financial system.                 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| To assist management in the discharge of these responsibilities, the Company maintains asystem of internal controls designed to provide reasonable assurance that its assets are safeguarded; that only valid andauthorized transactions are executed; and that accurate, timely and comprehensive financial information is prepared.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| The Company's Audit Committee is appointed annually by the Board of Directors and iscomprised of Directors, all of whom are neither employees nor officers of the Company.  The Audit Committee meets withmanagement as well as with external auditors to satisfy itself that management is properly discharging its financial reportingresponsibilities and to review the consolidated financial statements, the independent auditors' report and the management'sdiscussion and analysis.  The Audit Committee reports its findings to the Board of Directors for consideration in approvingthe consolidated financial statements and management discussion and analysis for presentation to the shareholders.  Theexternal auditors have direct access to the Audit Committee of the Board of Directors. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| The consolidated financial statements have been independently audited by Deloitte &Touche LLP.  Their report outlines the nature of their audits and expresses their opinion on the consolidated financialstatements of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (signed) E. M. Siegel, Jr.            |     | (signed) Brian R. Hedges                             |
|---------------------------------------|--------------------|------------------------------------------------------|
|                                       |     |                                                      |
| President and Chief Executive Officer |     | Executive Vice President and Chief Financial Officer |
| **Auditors' Report** |
|----------------------|
| To the Shareholders of Russel Metals Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| We have audited the consolidated balance sheets of Russel Metals Inc. as at December 31,2003 and 2002 and the consolidated statements of earnings and retained earnings and of cash flows for each of the years in thethree-year period ended December 31, 2003.  These financial statements are the responsibility of the Company'smanagement.  Our responsibility is to express an opinion on these financial statements based on our audits.                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| We conducted our audits in accordance with Canadian generally accepted auditingstandards.  Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financialstatements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amountsand disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financial statement presentation.                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| In our opinion, these consolidated financial statements present fairly, in all materialrespects, the financial position of the Company as at December 31, 2003 and 2002 and the results of its operations and its cashflows for each of the years in the three-year period ended December 31, 2003 in accordance with Canadian generally acceptedaccounting principles.                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (signed) Deloitte & Touche LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       |
| Chartered Accountants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Toronto, Ontario                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| January 30, 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| COMMENTS BY AUDITORS ON CANADA -- U.S. REPORTING DIFFERENCES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| In the United States of America, reporting standards for auditors require the addition ofan explanatory paragraph (following the opinion paragraph) when there is a change in accounting principles that have a materialeffect on the comparability of the Company's financial statements, such as the changes described in Note 2 to the financialstatements.  Our report to the Shareholders, dated January 30, 2004, is expressed in accordance with Canadian reportingstandards, which does not require a reference to such a change in accounting principles in the auditors' report when the change isproperly accounted for and adequately disclosed in the financial statements. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (signed) Deloitte & Touche LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |       |
| Chartered Accountants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Toronto, Ontario                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| January 30, 2004                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Consolidated Balance Sheets** |
|---------------------------------|
| *At December 31 ($000)*                                                                                   | **2003**                           |    | 2002                               |
|-----------------------------------------------------------------------------------------------------------|------------------------------------|--------------|------------------------------------|
|                                                                                                           |
| **ASSETS**                                                                                                | **     ** |    | **     ** |
| **Current**                                                                                               | **     ** |    | **     ** |
|            Cash                                    | **$  19,008**            |    | $  25,068                |
|            Accountsreceivable                      | **248,904**                        |    | 201,675                            |
|            Inventories                             | **303,048**                        |    | 329,415                            |
|            Prepaid expenses andother assets        | **5,028**                          |    | 6,077                              |
|            Income taxesrecoverable                 | **5,912**                          |    | 1,306                              |
|            Discontinued operations(Note 3d)        | **1,107**                          |    | -                                  |
|                                                                                                           |
|                                                                                  | **583,007**                        |    | 563,541                            |
|                                                                                  |
| **Property, Plant and Equipment (Note 5)**                                                                | **184,929**                        |    | 110,512                            |
| **Assets Held for Sale (Note 3d)**                                                                        | **1,622**                          |    | -                                  |
| **Deferred Financing Charges (Note 17)**                                                                  | **3,547**                          |    | 4,962                              |
| **Goodwill (Note 3)**                                                                                     | **4,216**                          |    | 2,709                              |
| **Future Income Tax Assets (Note 10)**                                                                    | **10,458**                         |    | 10,698                             |
| **Other Assets (Note 6)**                                                                                 | **2,840**                          |    | 3,172                              |
|                                                                                                           |
| **     **                                                                        | **$790,619**                       |    | $695,594                           |
|                                                                                                           |
|                                                                        |
| **LIABILITIES AND SHAREHOLDERS' EQUITY**                                                                  | **     ** |    | **     ** |
| **Current**                                                                                               | **     ** |    | **     ** |
|            Bank indebtedness (Note7)               | **$  78,093**            |    | $  21,141                |
|            Accounts payable andaccrued liabilities | **217,173**                        |    | 188,585                            |
|            Income taxespayable                     | **11,729**                         |    | 2,487                              |
|            Discontinued operations(Note 3d)        | **2,729**                          |    | -                                  |
|                                                                                                           |
| **     **                                                                        | **309,724**                        |    | 212,213                            |
| **Long-Term Debt (Notes 8 and 17)**                                                                       | **179,402**                        |    | 212,602                            |
| **Pensions and Benefits (Note 14)**                                                                       | **11,542**                         |    | 9,590                              |
| **Future Income Tax Liabilities (Note 10)**                                                               | **6,109**                          |    | 8,749                              |
|                                                                                                           |
| **     **                                                                        | **506,777**                        |    | 443,154                            |
|                                                                                                           |
| **Contingencies and Commitments (Note 15)**                                                               | **     ** |    | **     ** |
| **Shareholders' Equity**                                                                                  | **     ** |    | **     ** |
|            Preferred shares (Notes11 and 17)       | **30,000**                         |    | 30,000                             |
|            Shareholders' equity(Note 11)           | **253,842**                        |    | 222,440                            |
|                                                                                                           |
| **     **                                                                        | **283,842**                        |    | 252,440                            |
|                                                                                                           |
| **     **                                                                        | **$790,619**                       |    | $695,594                           |
|                                                                                                           |
| ON BEHALF OF THE BOARD,   |       |         |
|---------------------------|--------------------------------|----------------------------------|
|                           |                                |                                  |
| (signed)  C.R. Fiora |       | (signed)  A.C. Thorsteinson |
|                           |       |                                  |
| Director                  |       | Director                         |
| **Consolidated Statements of Earnings and Retained Earnings** |
|---------------------------------------------------------------|
| *For the years ended December 31*                                                 | **  **                                                |    |                                                   |    |                                                         |
|-----------------------------------------------------------------------------------|-----------------------------------------------------------------|--------------|-------------------------------------------------------------|--------------|-------------------------------------------------------------------|
| *($000 except per share data)*                                                    | **2003**                                                        |    | 2002                                                        |    | 2001                                                              |
|                                                                                   |
| **Revenues**                                                                      | **$1,517,090**                                                  |    | $1,403,275                                                  |    | $1,402,509                                                        |
| Cost of sales and operating expenses                                              | **1,456,059**                                                   |    | 1,332,864                                                   |    | 1,351,888                                                         |
|                                                                                   |
| **Earnings before the following**                                                 | **61,031**                                                      |    | 70,411                                                      |    | 50,621                                                            |
| Restructuring costs (Note 3b)                                                     | **3,583**                                                       |    | 2,749                                                       |    | 2,400                                                             |
| Foreign exchange (gain) loss (Note 12)                                            | **(348)**                                                       |    | (261)                                                       |    | 1,383                                                             |
| Goodwill impairment (Note 3c)                                                     | **2,410**                                                       |    | -                                                           |    | -                                                                 |
| Debt repurchase costs                                                             | **-**                                                           |    | -                                                           |    | 391                                                               |
| Interest expense -- net (Note 9)                                                  | **22,800**                                                      |    | 20,324                                                      |    | 23,017                                                            |
| Loss on sale of business (Note 4)                                                 | **-**                                                           |    | -                                                           |    | 6,000                                                             |
| Acquisition costs (Note 3)                                                        | **-**                                                           |    | -                                                           |    | 1,688                                                             |
|                                                                                   |
| **Earnings before income taxes**                                                  | **32,586**                                                      |    | 47,599                                                      |    | 15,742                                                            |
| Provision for income taxes (Note 10)                                              | **(13,299)**                                                    |    | (18,363)                                                    |    | (7,134)                                                           |
|                                                                                   |
| **Earnings from continuing operations**                                           | **19,287**                                                      |    | 29,236                                                      |    | 8,608                                                             |
| Loss from discontinued operations (Note 3d)                                       | **(788)**                                                       |    | -                                                           |    | -                                                                 |
| **Net earnings for the year**                                                     | **18,499**                                                      |    | 29,236                                                      |    | 8,608                                                             |
|                                                     | **  **                                                |    |                                                   |    |                                                         |
| **Retained Earnings --**                                                          | **  **                                                |    | **  **                                            |    | **  **                                                  |
| **     **                                                | **  **                                                |    |                                                   |    |                                                         |
| Dividends on preferred shares                                                     | **(2,250)**                                                     |    | (2,250)                                                     |    | (2,250)                                                           |
|                                                                                   |
| **Earnings available to common shareholders**                                     | **16,249**                                                      |    | 26,986                                                      |    | 6,358                                                             |
|                                                          | **  **                                                |    |                                                   |    |                                                         |
| Dividends on common shares                                                        | **(11,605)**                                                    |    | (6,466)                                                     |    | (7,596)                                                           |
| Retained earnings, beginning of the year                                          | **105,858**                                                     |    | 100,461                                                     |    | 101,699                                                           |
| Goodwill impairment (Note 2)                                                      | **-**                                                           |    | (15,123)                                                    |    | -                                                                 |
|                                                                                   |
| **Retained earnings, end of the year (Note 11)**                                  | **$   110,502**                                  |    | $   105,858                                  |    | $   100,461                                        |
|                                                                                   |
| **Basic earnings per common share**                                               | **  **                                                |    |                                                   |    |                                                         |
| **         -- continuingoperations** | **$         0.43** |    | $         0.71 |    | $          0.17 |
|                                                                                   |
| **Basic earnings per common share**                                               | **$         0.41** |    | $         0.71 |    | $          0.17 |
|                                                                                   |
| **Diluted earnings per common share**                                             | **  **                                                |    |                                                   |    |                                                         |
| **         -- continuingoperations** | **$         0.41** |    | $         0.68 |    | $          0.17 |
|                                                                                   |
| **Diluted earnings per common share**                                             | **$         0.39** |    | $         0.68 |    | $          0.17 |
|                                                                                   |
| **Consolidated Cash Flow Statements** |
|---------------------------------------|
| *For the years ended December 31 ($000)*                                                                   | **2003**                           |   | 2002                               |   | 2001                               |
|------------------------------------------------------------------------------------------------------------|------------------------------------|--------|------------------------------------|--------|------------------------------------|
|                                                                                                            |
| Operating activities                                                                                       | **     ** |   | **     ** |   | **     ** |
|            Earnings from continuingoperations       | **$   19,287**      |   | $   29,236          |   | $    8,608     |
|            Depreciation and amortization            | **16,502**                         |   | 15,192                             |   | 14,663                             |
|            Future income taxes                      | **(464)**                          |   | 8,708                              |   | 3,503                              |
|            Loss (gain) on sale offixed assets       | **(89)**                           |   | 26                                 |   | (113)                              |
|            Restructuringcosts                       | **3,162**                          |   | 2,749                              |   | 2,400                              |
|            Stock-basedcompensation                  | **217**                            |   | -                                  |   | -                                  |
|            Goodwillimpairment                       | **2,410**                          |   | -                                  |   | -                                  |
|            Foreign exchange (gain)loss              | **-**                              |   | (261)                              |   | 1,093                              |
|            Debt repurchasecosts                     | **-**                              |   | -                                  |   | 391                                |
|            Loss on sale ofbusiness                  | **-**                              |   | -                                  |   | 6,000                              |
|            Acquisitioncosts                         | **-**                              |   | -                                  |   | 1,688                              |
|                                                                                                            |
| Cash from operating activities before working capital                                                      | **41,025**                         |   | 55,650                             |   | 38,233                             |
|                                                                                                            |
| Changes in non-cash working capital items                                                                  | **     ** |   | **     ** |   | **     ** |
|            Accounts receivable                      | **18,193**                         |   | (210)                              |   | 69,182                             |
|            Inventories                              | **91,439**                         |   | (55,841)                           |   | 36,772                             |
|            Accounts payable and accrued liabilities | **(12,669)**                       |   | 23,926                             |   | (46,328)                           |
|            Current income taxes                     | **11,719**                         |   | 3,919                              |   | (4,397)                            |
|            Other                                    | **2,571**                          |   | (923)                              |   | (323)                              |
|                                                                                                            |
| Change in non-cash working capital                                                                         | **111,253**                        |   | (29,129)                           |   | 54,906                             |
|                                                                                                            |
| **Cash from operating activities**                                                                         | **152,278**                        |   | 26,521                             |   | 93,139                             |
|                                                                                                            |
| Financing activities                                                                                       | **     ** |   | **     ** |   | **     ** |
|            Increase (decrease) in bank borrowing    | **56,952**                         |   | 21,141                             |   | (38,441)                           |
|            Repayment of debt assumed                | **(99,262)**                       |        | -                                  |        | -                                  |
|            Dividends on common shares               | **(11,605)**                       |   | (6,466)                            |   | (7,596)                            |
|            Dividends on preferred shares            | **(2,250)**                        |   | (2,250)                            |   | (2,250)                            |
|            Repurchase of long-term debt             | **-**                              |   | -                                  |   | (14,808)                           |
|            Issue of common shares (Note 11)         | **5,663**                          |   | 253                                |   | -                                  |
|            Deferred financing costs                 | **(77)**                           |   | (14)                               |   | (29)                               |
|                                                                                                            |
| **Cash from (used in) financing activities**                                                               | **(50,579)**                       |   | 12,664                             |   | (63,124)                           |
|                                                                                                            |
| Investing activities                                                                                       | **     ** |   | **     ** |   | **     ** |
|            Purchase of fixedassets                  | **(34,879)**                       |   | (12,768)                           |   | (8,152)                            |
|            Proceeds on sale offixed assets          | **1,804**                          |   | 2,328                              |   | 255                                |
|            Purchase of businesses(Note 3)           | **(70,359)**                       |   | (21,406)                           |   | (25,288)                           |
|            Proceeds on sale ofbusinesses (Note 4)   | **-**                              |   | -                                  |   | 10,397                             |
|            Other                                    | **(4,628)**                        |   | 578                                |   | 1,001                              |
|                                                                                                            |
| **Cash used in investing activities**                                                                      | **(108,062)**                      |   | (31,268)                           |   | (21,787)                           |
|                                                                                                            |
| Discontinued operations                                                                                    | **     ** |   | **     ** |   | **     ** |
|            Operatingactivities                      | **(788)**                          |   | -                                  |   | -                                  |
|            Investingactivities                      | **1,091**                          |   | -                                  |   | -                                  |
|                                                                                                            |
| **Cash from discontinued operations**                                                                      | **303**                            |   | -                                  |   | -                                  |
|                                                                                                            |
| **Increase (decrease) in cash**                                                                            | **(6,060)**                        |   | 7,917                              |   | 8,228                              |
| Cash, beginning of the year                                                                                | **25,068**                         |   | 17,151                             |   | 8,923                              |
|                                                                                                            |
| **Cash, end of the year**                                                                                  | **$   19,008**      |   | $   25,068          |   | $  17,151                |
|                                                                                                            |

| **Notes to the Consolidated Financial Statements** |
|----------------------------------------------------|
| **1.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **Summary of Significant Accounting Policies**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *a)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Principles of consolidation*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The consolidated financial statements include the accounts of Russel Metals Inc. and itssubsidiary companies herein referred to as the Company.  The reporting currency is Canadian dollars unless otherwisenoted.  All material inter-company balances, transactions and profits have been eliminated.                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| These consolidated financial statements have been prepared in accordance with Canadiangenerally accepted accounting principles.  Material differences from accounting principles generally accepted in the U.S. aredisclosed in Note 16.                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *b)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Inventories*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Inventories are recorded at the lower of cost and net realizable value.  Cost isdetermined on either an average cost basis or an actual cost basis depending on the business unit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *c)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Property, plant, equipment and depreciation*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Property, plant, equipment and leasehold improvements are recorded at cost. Depreciation is provided on a straight-line basis at rates that charge the original cost of such assets to operations over theirestimated useful lives.  The rates used are 20 to 40 years for buildings, 10 years for machinery and equipment, 2 to 5 yearsfor computer equipment and over the lease term for leasehold improvements.  Depreciation expense was $15,312,000 in 2003(2002: $13,973,000; 2001: $12,993,000).                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *d)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Deferred financing charges and amortization*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Costs incurred that relate to financing are deferred and amortized over the period of therelated financing.  Deferred financing charges are recorded at cost less accumulated amortization.  Amortization ofdeferred financing charges was $1,190,000 in 2003 (2002: $1,219,000; 2001: $1,243,000).                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *e)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Goodwill and amortization*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Goodwill represents the excess purchase price paid on acquisitions over the value assignedto identifiable net assets acquired.  Goodwill on acquisitions subsequent to July 1, 2001 is not amortized but is subject toan annual permanent impairment test (see Note 3).  Goodwill on acquisitions prior to July 1, 2001 was amortized on astraight-line basis over a period not exceeding 40 years or written down when there has been a permanent impairment in value. Effective January 1, 2002 all goodwill ceased to be amortized and is subject to an annual permanent impairment test. Amortization recorded in 2001 was $427,000. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *f)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Pensions*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The cost of pension benefits earned by employees covered under defined benefit plans isdetermined using the projected benefit method prorated on service and is charged to expense as services are rendered. Aggregate gains and losses are amortized on a straight-line basis over the estimated average remaining service lives of theemployee groups, using the corridor approach.  The cost of post-retirement benefits other than pensions is recognized on anaccrual basis over the working lives of employees.                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *g)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Income taxes*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The Company uses the liability method of income tax allocation.  Under this method,future tax assets and liabilities are determined based on differences between the financial accounting and tax bases of assets andliabilities and are measured using the substantively enacted tax rates and laws that will be in effect when the differences areexpected to reverse.                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *h)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Foreign currency translation*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The accounts of foreign subsidiaries are translated into Canadian dollars at the noon spotrates in effect at the balance sheet date.  For 2003, the U.S. dollar published exchange rate was 1.2924 (2002: 1.5796). Revenues and expenses are translated at the average rate of exchange for the year.  For 2003, the U.S. dollar publishedaverage exchange rate was 1.4010 (2002: 1.5703; 2001: 1.5489).  The resulting gains or losses are accumulated as a separatecomponent of shareholders' equity.                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Effective January 1, 2001, the Company adopted the Canadian accounting standards onforeign currency translation and accordingly, exchange gains or losses on long-term debt denominated in foreign currencies notdesignated as a hedge are expensed as incurred (see Note 12).  Exchange gains or losses on the translation of long-term debtdenominated in a foreign currency designated as a hedge of the Company's net investment in foreign subsidiaries are included in theseparate component of shareholders' equity.                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *i)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Earnings per share*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Basic earnings per common share are calculated using the weighted daily average number ofcommon shares outstanding.  The weighted average number of common shares for 2003 was 40,021,479 (2002: 38,024,034; 2001:37,981,501).                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *j)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Stock-based compensation*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Effective January 1, 2003, the Company adopted the fair value method of accounting forstock-based payments.  Prior to 2003, the Company had chosen to account for the employee stock-based compensation plans usingthe intrinsic value-based method.  Pro forma net income and earnings per share have been provided as if the fair value-basedaccounting method had been used since January 1, 2001 (see Note 11).                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *k)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Revenue recognition*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Revenue is recognized when the goods are shipped to the customer when collection isreasonably assured.  Revenue on certain sales in the energy segment, where the Company acts as an agent, is presented on a netbasis.                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *l)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Derivative financial instruments*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The Company uses foreign exchange contracts to manage foreign exchange risk on certaincommitted cash outflows.  Realized and unrealized foreign exchange gains and losses not designated as a hedge are included inincome.  Derivatives are not entered into for speculative purposes and the use of derivative contracts is governed bydocumented risk management policies.                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *m)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Cash*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Cash includes short-term investments with a maturity of less than 30 days.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *n)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | *Use of estimates*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The preparation of consolidated financial statements in conformity with Canadian generallyaccepted accounting principles requires management to make estimates and assumptions that affect the reported assets andliabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts ofrevenue and expenses during the reporting periods.  In particular, inventories, accounts receivable, other contingencies andassigned values on net assets acquired represent management's best estimates.  Actual results could differ from theseestimates.                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| **2.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **Change in Accounting Policies**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | In the fourth quarter of 2003, the Company prospectively adopted, effective January 1,2003, the fair value method of accounting for employee stock-based payments issued after that date.  The impact of theadoption of this standard for the year ended December 31, 2003 resulted in additional compensation expense of $217,000.  Ifthis standard had been adopted prior to the release of the quarterly statements, the effect on the first, second and third quarterswould have been an increase in compensation expense of $48,000, $53,000 and $55,000 respectively.  The Company has notrestated its quarterly results.  For options issued prior to January 1, 2003, the Company had chosen to account for theemployee stock-based compensation plans using the intrinsic value-based method as allowed by the Canadian standard adopted onJanuary 1, 2001.  As required by the transitional provisions of the standard, pro forma net income and earnings per shareinformation have been provided as if the fair value-based accounting method had been used since January 1, 2001 for options issuedprior to January 1, 2003 (see Note 11).                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Effective May 1, 2003, the Company adopted the new accounting standard for Long-LivedAssets and Discontinued Operations.  This standard, along with emerging issues abstracts EIC-134 Accounting for Severanceand**Termination Benefits and EIC-135 Accounting for**Costs Associated with Exit and Disposal Activities (Including CostsIncurred in a**Restructuring) have been applied to the restructuring as a result of the Acier Leroux inc. acquisition (seeNote 3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | In 2003, the Company also adopted the new standard on financial statement presentation andnew accounting guideline on disclosure of guarantees.  The implementation of these standards did not have a material effect onthe Company's results of operations, financial position or cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Effective January 1, 2002, the Company adopted the provisions of the Canadian accountingstandard for goodwill and other intangibles.  Under this standard, goodwill is no longer amortized but is subject to animpairment test at least annually.  As required by the standard, the Company has performed a transitional goodwill impairmentevaluation based on discounted cash flows in each reporting unit as at January 1, 2002.  The transitional impairment loss of$15,123,000 as a result of this evaluation has been charged to retained earnings at January 1, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | The following table presents the impact on comparative net earnings and earnings per sharehad the new standard been in effect January 1, 2001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| ***($000 except per share data)***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **2002** | ** ** | **2001** |
| ****                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Net earnings as reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $ 18,499                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $ 29,236 | ** ** | $   8,608 |
| Goodwill amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **-**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **-** | ** ** | 427 |
| ****                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Net income adjusted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $ 18,499                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $ 29,236 | ** ** | $   9,035 |
| ****                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Basic earnings per share - as reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $     0.41                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $     0.71 | ** ** | $     0.17 |
| Basic earnings per share - adjusted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $     0.41                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $     0.71 | ** ** | $     0.18 |
| ****                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Effective July 1, 2001, the Company adopted the accounting standard for businesscombinations.  The Company has applied this new standard in its acquisitions subsequent to July 1, 2001 (see Note 3) and asrequired by the standard's transitional provisions, the goodwill generated from these acquisitions was not amortized.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| f)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Effective January 1, 2001, the Company adopted the Canadian accounting standards forearnings per share and foreign currency translation.  Under the earnings per share standard, the treasury stock method is usedfor determining the dilutive effect of stock options issued.  Under the accounting standard for foreign currency translation,foreign exchange gains and losses on long-term debt are no longer deferred and amortized.  The implementation of thesestandards does not have a material effect on the Company's results of operations, financial position or cash flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **3.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **Business Acquisitions**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | On July 3, 2003, the Company successfully completed its offers to purchase Acier Lerouxinc.  Acier Leroux is a service center operation with Canadian locations in Ontario, Quebec and the Atlantic provinces. Acier Leroux Class A multiple voting shares validly tendered under the offer represented 99.52% of the issued and outstanding ClassA shares.  Acier Leroux Class B subordinate voting shares validly tendered under the offer represented 97.53% of the issuedand outstanding Class B shares.  Acier Leroux debentures validly tendered under the offer represented 86.61% of theoutstanding 8% convertible unsecured subordinated debentures and 87.2% of the outstanding 7.25% convertible unsecured subordinateddebentures.  The Company issued 3,546,874 shares and paid $48,947,000 in cash in consideration for the shares and $16,684,000in cash in consideration for debentures tendered under the offer.  In addition, the Company entered into an arrangement withthe former Chairman and Chief Executive Officer of Acier Leroux requiring payments over a three-year period in the amount of$1,350,000, which has been accrued as a transaction cost. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | On August 19, 2003, the Company, under the provisions of the *Companies Act*(Quebec), acquired the remaining shares of Acier Leroux for $1,190,000 in cash.  On August 27, 2003, Acier Leroux redeemed thedebentures not acquired in the offer.                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Effective September 9, 2002, the Company purchased substantially all of the assets of theMilwaukee, Wisconsin service center operation formerly known as Williams Steel for $17.0 million in cash.  This acquisitionwas intended to strengthen the existing Bahcall operations in Wisconsin and led to the restructuring of these operations. Costs associated with the restructuring of the Williams Steel location of $0.2 million were included in goodwill.  EffectiveMarch 1, 2002, the Company purchased the operations and the fixed assets of Arrow Steel Processors, a coil processor of customerowned material located in Texas, for $4.4 million cash. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Effective October 15, 2001, the Company purchased 100% of the shares of A. J. Forsyth andCompany Limited, a Canadian service center operation located in British Columbia, for cash consideration of $22.0 million andassumed bank debt of $13.9 million.  The acquisition was made to strengthen the B.C. Region and led to the restructuring ofthe B.C. service center operations.  Costs of $1.2 million associated with the restructuring of the A. J. Forsyth locationswere included in goodwill on acquisition, which totaled $7.6 million.                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Effective August 16, 2001, the Company purchased 100% of the shares of Spartan SteelProducts, Inc., a U.S. distributor of energy sector pipe, for cash consideration of $3.0 million and assumed bank debt of $3.3million.  Effective October 9, 2001, the Company purchased 100% of the shares of 1377804 Ontario Inc., a Canadian servicecenter operation located in Ontario, for cash consideration of $255,000.                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Effective September 1, 2000, the Company purchased Triumph Tubular & Supply Ltd., aCalgary, Alberta distributor of oil country tubular goods.  Additional amounts under an earnout based on results may be paidover five years and will be incremental to goodwill.  The additional amount related to 2003 is $nil (2002: $nil; 2001:$102,000).                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | These acquisitions have been accounted for using the purchase method and their results ofoperations have been consolidated since their respective acquisition dates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Net assets acquired, at assigned values at acquisition dates:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **$  74,483**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $  4,110 |   | $  12,323 |
| Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **82,880**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 8,567 |   | 15,945 |
| Fixed assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **60,769**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 6,273 |   | 16,693 |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **2,122**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 54 |   | 510 |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **4,216**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2,680 |   | 8,321 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Total assets -- continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **224,470**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 21,684 |   | 53,792 |
| Accounts payable and accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **(44,778)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (346) |   | (8,203) |
| Accrued pension and benefit liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **(1,380)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | - |   | - |
| Future income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **11,278**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 68 |   | (3,181) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Net identifiable assets -- continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **189,590**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 21,406 |   | 42,408 |
| Discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **8,010**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | - |   | - |
| Debt assumed, net of cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **(123,956)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | - |   | (17,120) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Net assets acquired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **$  73,644**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $  21,406 |   | $  25,288 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Consideration:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |   |  |
|      Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **$  50,137**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $  21,406 |   | $  25,288 |
|      Russel Metals common shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **19,969**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | - |   | - |
|      Transaction costs, net of taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **3,538**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | - |   | - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **$  73,644**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $  21,406 |   | $  25,288 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | The preliminary net assets acquired in the Leroux transaction include certaincontingencies and estimates such as the expected proceeds on disposition of certain Leroux assets.  The purchase priceallocation is expected to be final in the second quarter of 2004.                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | The goodwill for 2003 and 2002 has been allocated to the service center segment and for2001 $7.6 million was allocated to the service center segment with the balance in energy.  The tax-deductible portion ofgoodwill is $nil (2002: $2.7 million; 2001: $0.8 million).  Cash included in debt assumed was $2.7 million (2001:$nil).                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | In May 2001, the Company announced that it had been unsuccessful in finalizing anagreement for the acquisition of a U.S. service center operation.  The due diligence process and legal expenses resulted in awrite off of costs of $1.7 million.                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Restructuring                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | In 2003, a restructuring charge of $3.6 million was recorded relating to the severance,employee benefits and termination costs of the closure of the Russel Metals' operations as a result of the acquisition of AcierLeroux.  These costs primarily relate to the closure of the Russel Metals' Lachine, Quebec location.  These costs alsorelate to employee related charges in the Atlantic and Ontario regions.  Operations ceased at Lachine on December 31, 2003, atwhich time the building was being readied for sale.  The continuity of the restructuring provision is as follows:                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2003 |   |       |   |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Special                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Contractual |   |       |   |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Termination                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Termination |   |       |   |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Costs |   | Other |   | Total |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Restructuring charged in the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $     327                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $  2,507 |   | $     749 |   | $  3,583 |
| Cash payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (99)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | (105) |   | (217) |   | (421) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Balance at end of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $    228                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $  2,402 |   | $     532 |   | $  3,162 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | In 2002, costs of restructuring the Bahcall locations, including the closure of theWaukeshau location and employee terminations, of $3.1 million were charged to income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | In 2001, the costs of restructuring the Russel Metals B.C. locations of $2.4 million werecharged to income.  During 2002, $0.4 million of this provision, not required for restructuring, was included inincome.                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2001                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Restructuring - Russel Metals B.C. operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $    (392)                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $   2,400           |
| Restructuring - Bahcall operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 3,141                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Restructuring costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $   2,749                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $   2,400           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | As at December 31, 2003, the remaining balance in these reserves was $0.7 million (2002:$3.9 million).                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Goodwill impairment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The Company completed its annual goodwill impairment test during the fourth quarter of2003.  This evaluation concluded that the fair value associated with the service center segment's Williams Bahcall operationcould not support the carrying value of the goodwill and accordingly, the Company recorded a goodwill impairment charge of $2.4million.                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | As part of the acquisition of Acier Leroux, the Company adopted a formal plan to disposeof their U.S. operations.  At December 31, 2003, all of these operations have been divested except a service center inPlattsburgh, New York.  This service center and certain other Acier Leroux assets are expected to be sold in the next year andconsequently have been included in discontinued operations.  The revenue generated by the service center since acquisition was$3.3 million. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **4.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Divestitures**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Divestitures include the sale of the inventory and fixed assets of Total Distributors, theCompany's Tulsa-based energy sector operation for cash of $9.6 million on June 15, 2001.  This sale resulted in a loss on saleof business of $6.0 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **5.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Property, Plant and Equipment**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **2003**                           |   |       |   | 2002 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **Cost**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **Net**                            |   | Cost |   | Net |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Land and buildings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **$ 139,850**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **$ 106,460**                 |   | $   73,983 |   | $   43,008 |
| Machinery and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **179,548**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **68,140**                         |   | 163,044 |   | 56,686 |
| Leasehold improvements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **25,454**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **10,329**                         |   | 25,777 |   | 10,818 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **$ 344,852**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **$ 184,929**                 |   | $ 262,804 |   | $ 110,512 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **6.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Other Assets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Other assets included a demand loan to an officer at interest rates prescribed by taxauthorities for the purchase of Company shares in the amount of $nil (2002: $710,820).  This loan was repaid in its entiretyin February 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **7.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Revolving Credit Facilities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Company has a credit facility with a syndicate of banks, which provides a line ofcredit to a maximum of $253.8 million, including letters of credit.  The Company has extended the facility to June 19, 2005.Borrowings under this facility are restricted by certain financial covenants with which the Company was in compliance at December31, 2003.  The obligations of the Company under this agreement are secured by a pledge of trade accounts receivable andinventories of a significant portion of the Company's operations.  At December 31, 2003, the Company had borrowings of $79.0million (2002: $5.8 million) and letters of credit of $25.8 million (2002: $8.0 million) under this facility. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| In addition, certain U.S. subsidiaries of the Company have their own creditfacility.  The maximum borrowing under this facility is US $35.0 million.  At December 31, 2003, these subsidiaries hadno borrowings (2002: US $11.8 million) and letters of credit of US $9.4 million (2002: US $5.6 million) under thisfacility.                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **8.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Long-Term Debt**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10% Senior Notes US $115.6 million                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                    |
|      due June 1, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **$149,402**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $182,602                           |
| 8% Subordinated Debentures due June 15, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **30,000**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 30,000                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **$179,402**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $212,602                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *a)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | *10% Senior Notes*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| During 2003 and 2002, US $69.4 million of these are notes of Russel Metals Inc., legalentity, and have been designated as a hedge of the Company's net investment in foreign subsidiaries.  The remaining US $46.2million are notes of RMI USA LLC, a U.S. subsidiary of Russel Metals Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The notes are redeemable, as units, in whole or in part, at the joint option of theCompany and the U.S. subsidiary, on or after June 1, 2004 at 105% of the principal amount declining rateably to 100% of theprincipal amount on or after June 1, 2007.  In addition, the notes are also redeemable, in whole, at the option of the Companyat any time at 100% of the principal amount in the event of certain changes affecting Canadian withholding taxes.  The notescontain certain restrictions on the payment of common share dividends.                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| During the year ended December 31, 2001, the Company repurchased US $9.4 million of the10% Senior Notes for US $9.4 million in cash.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *b)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | *8% Subordinated Debentures*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The 8% Subordinated Debentures, which are unsecured and mature in June 2006, areredeemable at face value subject to certain conditions being met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **9.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Interest Expense**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Interest on long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **$18,839**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | $20,550 |   | $21,396 |
| Other interest expense (income)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **3,961**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | (226) |   | 1,621 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **$22,800**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | $20,324 |   | $23,017 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Total interest paid by the Company in 2003 was $21,746,000 (2002: $20,298,000; 2001:$23,272,000).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **10.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Income Taxes**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The non-current future income tax balances consist of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002                               |
| Future income tax assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |           |
|         Tax benefits of losscarryforwards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **$  8,820**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $  8,988                 |
|         Plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **198**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 1,677                              |
|         Pensions and benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **974**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 988                                |
|         Other timing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **3,294**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 3,362                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         Gross future income tax assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **13,286**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 15,015                             |
|         Valuation allowance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **(2,828)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (4,317)                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         Total future income tax assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **10,458**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 10,698                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |           |
| Future income tax liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |           |
|         Plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **(6,650)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (5,930)                            |
|         Pension and benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **2,608**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2,174                              |
|         Other timing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **1,117**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (8,028)                            |
|         Unrealized foreign exchange charged toequity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **(3,184)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 3,035                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|         Total future income taxliabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **(6,109)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (8,749)                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Net future income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **$  4,349**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $  1,949                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The Company's effective income tax rate is derived as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Average combined statutory rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **37.0%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | 39.0% |   | 41.9% |
| Statutory tax rate changes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **2.8%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | - |   | (2.4)% |
| Large Corporation Tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **0.6%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 0.5% |   | 2.8% |
| Rate difference of U.S. companies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | -                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                               | (1.1)% |   | 4.1% |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **0.4%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 0.2% |   | (1.1)% |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Average effective tax rate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **40.8%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | 38.6% |   | 45.3% |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The details of the income tax provision are as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Current provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **$13,763**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | $  9,655 |   | $  3,631 |
| Future provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **(1,364)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | 8,708 |   | 3,881 |
| Statutory rate adjustments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **900**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                               | - |   | (378) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **$13,299**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | $18,363 |   | $  7,134 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Income taxes paid in 2003 were $7,777,000 (2002: $5,942,000; 2001: $2,058,000).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The Company has Canadian net operating losses carried forward for tax purposes for which avaluation allowance has been recorded.  They expire as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **Year of Expiry**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **Amount**                         |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $     195 |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 651                                |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 838                                |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 585                                |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 4                                  |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 1,013                              |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | In addition, the Company has recorded a valuation allowance for timing differences ofapproximately $4.8 million (2002: $7.7 million).                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **11.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Shareholders' Equity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The components of shareholders' equity are as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Common shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **$147,981**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $122,324                           |
| Retained earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **110,502**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 105,858                            |
| Contributed surplus                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **192**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -                                  |
| Cumulative translation adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **(4,833)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (5,742)                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **$253,842**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $222,440                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | At December 31, 2003, the authorized share capital of the Company consists of:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | an unlimited number of common shares without nominal or par value;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | an unlimited number of Class I preferred shares without nominal or par value, issuable inseries; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | an unlimited number of Class II preferred shares without nominal or par value, issuable inseries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The Company has 1,200,000 cumulative, redeemable Class II preferred shares, Series C withannual cash dividends of $1.875 per share payable in quarterly instalments authorized, issued and outstanding as of December 31,2003 and 2002.  This series of Class II preferred shares is non-voting and is redeemable at a price of $25 per share withoutcondition.                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The Directors have the authority to issue the Class I and Class II preferred shares inseries and fix the designation, rights, privileges and conditions to be attached to each series, except the Class I shares shall beentitled to preference over the Class II shares with respect to the payment of dividends and the distribution of assets in theevent of liquidation, dissolution or winding-up of the Company.                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The number of common shares issued and outstanding at December 31 was asfollows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **Number of**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **Amount**                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **Shares**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **($000)**                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Balance, December 31, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 37,981,501                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $122,071                           |
| Stock options exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 75,500                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 253                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Balance December 31, 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 38,057,001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 122,324                            |
| Shares issued -- Acier Leroux acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 3,546,874                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 19,969                             |
| Stock options exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 1,419,567                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 5,688                              |
| Shares cancelled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | (100)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Balance, December 31, 2003                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 43,023,342                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $147,981                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The Company has a shareholder approved share option plan, the purpose of which is toprovide the Directors and employees of the Company and its subsidiaries with the opportunity to participate in the growth anddevelopment of the Company.  The number of common shares that may be issued under the share option plan is 4,500,000. The options are exercisable on a cumulative basis to the extent of either 33 1/3% or 20% per year of total options granted, exceptthat under certain specified conditions the options become exercisable immediately.  The consideration paid by employees forpurchase of common shares is added to share capital. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The following is a continuity schedule of options outstanding:                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **Weighted Average**               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **Number of Options**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **Exercise Price**                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002                               |   | **2003** |   | 2002 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Balance, beginning of the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **2,682,100**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2,293,600                          |   | **$3.94** |   | $3.97 |
| Granted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **795,000**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 604,000                            |   | **5.22** |   | 3.87 |
| Exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **(1,419,567)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (75,500)                           |   | **3.99** |   | 3.35 |
| Expired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **(26,400)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (140,000)                          |   | **4.30** |   | 4.54 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Balance, end of the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2,031,133**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2,682,100                          |   | **$4.40** |   | $3.94 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Exercisable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **795,922**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 1,651,600                          |   | **$4.46** |   | $4.21 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The outstanding options at December 31, 2003 have exercise prices ranging from $5.50 -$6.00 (87,000 options); $3.50 - $5.49 (484,600 options) and $3.00 - $3.49 (1,459,533 options).  In 2002, the exercise price ofthe options ranged from $3.00 to $6.375.  The options expire in the years 2005 to 2012 and have a weighted average remainingcontractual life of 7.1 years (2002: 7.7 years).                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | On January 1, 2003, the Company adopted the fair value-based method of accounting forstock-based compensation.  Prior to January 1, 2003, the Company accounted for stock options using the intrinsic value-basedmethod.                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | As required by the standard, disclosure of pro forma net earnings and earnings per share,as calculated under the fair value-based method as if this method had been adopted since January 1, 2001, is as follows:                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000 except per share data)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Net earnings -- as reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **$ 18,499**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                    | $ 29,236 |  | $  8,608 |
| Additional compensation expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **(496)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                    | (764) |  | (901) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **$ 18,003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                    | $ 28,472 |  | $   7,707 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Basic earnings per common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **$     0.39**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    | $**     ** 0.69 |  | $**     ** 0.14 |
| Diluted earnings per common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **$     0.38**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    | $**     ** 0.66 |  | $**     ** 0.14 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The Black Scholes option-pricing model assumptions used to compute compensation expenseunder the fair value-based method are as follows:                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Dividend yield                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **5.0%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 5.0% |   | 5.0% |
| Expected volatility                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **34.6%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | 39.6% |   | 41.8% |
| Expected life                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **7 yrs**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | 7 yrs |   | 10 yrs |
| Risk free rate of return                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **5.0%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 5.0% |   | 5.0% |
| Weighted average fair value of options granted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **$1.30**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $1.09 |   | $0.91 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Diluted share amounts were computed as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Weighted average shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **40,021,479**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | 38,024,034 |   | 37,981,501 |
| Shares assumed issued - options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **1,981,324**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                               | 1,948,942 |   | 461,667 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Diluted weighted average shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **42,002,803**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | 39,972,976 |   | 38,443,168 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **12.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Financial Instruments**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *a)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | *Fair value*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| The fair value of long-term debt as at December 31, 2003 and 2002 is estimated based onthe last quoted trade price, where they exist, or on the current rates available to the Company for similar debt of the sameremaining maturities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |
|         Carrying amount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$179,402**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | $212,602                           |
|         Fair value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **187,912**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 219,032                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| As at December 31, 2003 and 2002, the estimated fair value of financial assets,liabilities and off-balance sheet instruments approximates their carrying values.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *b)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | *Credit risk*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Company, in the normal course of business, is exposed to credit risk from itscustomers.  This risk is mitigated by the fact that its customer base is geographically diverse and in differentindustries.  The Company is also exposed to credit risk from the potential default by any of its counterparties on its foreignexchange forward contracts.  The Company mitigates this risk by entering into forward contracts with Canadian chartered banksonly.                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *c)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | *Interest rate risk*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Company is not exposed to significant interest rate risk.  The Company'slong-term debt is at fixed rates.  The Company's bank debt that is used to finance working capital, which is short-term innature, is at floating interest rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *d)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | *Foreign exchange risk*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Company uses foreign exchange contracts to manage foreign exchange risk on certainfuture committed cash outflows.  As at December 31, 2003, the Company had outstanding forward foreign exchange contracts inthe amounts of US $15.3 million (2002: US $3.0 million) and € 1.825 million (2002:  € nil).  The foreignexchange gain included in 2003 net earnings from continuing operations was $881,000 (2002 loss: $560,000; 2001 loss:$190,000).                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Company has designated US $69.4 million of the Senior Notes and other U.S. borrowingsas a hedge of its net investment in foreign subsidiaries.  The exchange gains and losses on U.S. borrowing not designated as ahedge of its net investment are charged to income as incurred.  This resulted in a foreign exchange gain of $348,000 (2002gain: $261,000; 2001 loss: $1.4 million).                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **13.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Segmented Information**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Company conducts business primarily in three metals business segments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Service center distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The Company's network of service centers carries a full line of metal products in a widerange of sizes, shapes and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products,stainless steel and aluminum.  The Company services all major geographic regions of Canada and certain regions in theMidwestern United States.                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Energy sector distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The Company's energy sector distribution operations carry a more specialized and limitedproduct line than the service centers.  These operations distribute pipe, tube, valves and fittings, primarily to the energysector in Western Canada and the Western United States.                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Steel import/export                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The Company's steel import/export business primarily imports foreign steel products intoCanada and the United States for sale to third party steel service centers and other customers.                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Company has segmented its operations on the basis of management reporting and thegeographic segments in which it operates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Results by business segment:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Segment Revenues**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  |   |  |
| Service center distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$   922,778**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | $   750,878 |   | $   706,173 |
| Energy sector distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **297,532**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | 289,623 |   | 360,515 |
| Steel import/export                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **283,579**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | 348,055 |   | 321,454 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **1,503,889**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                               | 1,388,556 |   | 1,388,142 |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **13,201**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | 14,719 |   | 14,367 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$1,517,090**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | $1,403,275 |   | $1,402,509 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Segment Operating Profits**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  |   |  |
| Service center distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$     37,903**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $     31,516 |   | $     19,352 |
| Energy sector distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **13,764**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | 13,612 |   | 18,406 |
| Steel import/export                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **13,380**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | 28,090 |   | 14,175 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **65,047**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | 73,218 |   | 51,933 |
| Other income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **4,002**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | 5,732 |   | 6,177 |
| Corporate expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **(8,018)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | (8,539) |   | (7,489) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$     61,031**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $     70,411 |   | $     50,621 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Capital Expenditures**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  |   |  |
| Service center distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$     33,466**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $**     ** 11,416 |   | $       6,639 |
| Energy sector distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **1,032**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | 1,009 |   | 1,347 |
| Steel import/export                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **77**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                               | 202 |   | 32 |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **304**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                               | 141 |   | 134 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$     34,879**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $**     ** 12,768 |   | $       8,152 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Depreciation Expense**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  |   |  |
| Service center distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$     12,747**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $**     ** 11,549 |   | $**     ** 10,846 |
| Energy sector distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **1,126**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | 1,010 |   | 1,110 |
| Steel import/export                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **529**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                               | 502 |   | 148 |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **910**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                               | 912 |   | 889 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$     15,312**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | $**     ** 13,973 |   | $**     ** 12,993 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Identifiable Assets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  |   |  |
| Service center distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$**   **501,433**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                               | $   312,999 |   | $   298,098 |
| Energy sector distribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **144,809**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | 145,670 |   | 149,623 |
| Steel import/export                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **71,436**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | 162,776 |   | 112,941 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Identifiable assets by segment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **717,678**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | 621,445 |   | 560,662 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  |   |  |
| Assets not included in segments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  |   |  |
|            Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **19,008**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | 25,068 |   | 17,151 |
|            Income taxassets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **16,370**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | 12,004 |   | 17,950 |
|            Deferred financingcharges                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **3,547**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | 4,962 |   | 6,177 |
|            Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **2,840**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | 3,172 |   | 3,197 |
|            Corporate and otheroperating assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **31,176**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                               | 28,943 |   | 31,732 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$**   **790,619**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                               | $   695,594 |   | $   636,869 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Results by geographic segment:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Segment Revenues**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  |   |  |
| Canada                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$1,137,906**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | $    991,821 |   | $     941,105 |
| United States                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **365,983**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | 396,735 |   | 447,037 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$1,503,889**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | $1,388,556 |   | $1,388,142 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Segment Operating Profits**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  |   |  |
| Canada                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$**      **55,784**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | $     54,899 |   | $      46,940 |
| United States                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **9,263**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                               | 18,319 |   | 4,993 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$**      **65,047**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | $     73,218 |   | $      51,933 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Identifiable Assets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  |   |  |
| Canada                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$   580,955**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | $   439,910 |   | $   425,564 |
| United States                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **136,723**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               | 181,535 |   | 135,098 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$   717,678**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                               | $   621,445 |   | $   560,662 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **14.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Pensions and Benefits**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Company maintains defined benefit pension plans, post-retirement benefit plans anddefined contribution pension plans in Canada and 401(k) defined contribution pension plans in the United States.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The components for the Company's pension and benefit expense include thefollowing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Defined benefit pension plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |  |  |  |
|            Benefits earned duringthe year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **$1,538**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                    | $1,399 |  | $1,237 |
|            Interest cost on benefitobligation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **3,825**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                    | 3,639 |  | 3,469 |
|            Expected return on planassets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **(3,353)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                    | (3,333) |  | (3,396) |
|            Curtailmentloss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **225**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    | - |  | - |
|            Settlementloss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **648**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    | - |  | - |
|            Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **170**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    | 208 |  | (110) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **3,053**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                    | 1,913 |  | 1,200 |
| Post-retirement benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **112**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    | 390 |  | 380 |
| Defined contribution plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                    |  |  |  |
|            Paid during theyear                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **794**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    | 834 |  | 522 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **3,959**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                    | 3,137 |  | 2,102 |
| Related to discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **(462)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                    | (475) |  | (498) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Pension and benefit expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **$3,497**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                    | $2,662 |  | $1,604 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The actuarial determinations were based on the following assumptions in eachyear:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Assumed discount rate -- year end                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **6.5%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                    | 6.5% |  | 6.5% |
| Expected long-term rate of return on plan assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **7.0%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                    | 7.0% |  | 7.0% |
| Rate of increase in future compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **4.0%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                    | 4.0% |  | 4.0% |
| Rate of increase in future government benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **3.5%**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                    | 3.5% |  | 3.5% |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The health care cost trend rates used were 5% for dental and 9% (2002: 9%; 2001: 8%)graded out for medical, which is reduced 1% per year until 5% and 5% thereafter.  A 1% change in trend rates would result inan increase in the accrued benefit obligation for post-retirement benefits of $639,000 or a decrease of $571,000 and an increase innet periodic cost of $68,000 or a decrease of $57,000.                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The following information pertains to the Company's defined benefit pension and otherbenefit plans, excluding those which are in the process of being wound up.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Pension Plans**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **Other Benefit Plans**            |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002                               |   | **2003** |   | 2002 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Reconciliation of accrued benefit obligation**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                    |   |  |   |  |
| Balance, beginning of the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **$54,808**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $55,541                            |   | **$5,828** |   | $5,605 |
| Acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **5,603**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -                                  |   | **-** |   | - |
| Current service cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **1,538**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 1,399                              |   | **48** |   | 44 |
| Participant contribution                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **337**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 351                                |   | **-** |   | - |
| Interest cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **3,825**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 3,639                              |   | **372** |   | 357 |
| Benefits paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **(2,682)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (2,587)                            |   | **(300)** |   | (273) |
| Plan amendments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **141**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 92                                 |   | **-** |   | - |
| Corporate restructuring giving rise to:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                    |   |  |   |  |
|       Settlement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **(3,447)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -                                  |   | **-** |   | - |
|       Curtailment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **225**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -                                  |   | **(305)** |   | - |
| Actuarial (gain) loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **364**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (3,627)                            |   | **-** |   | 95 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Balance, end of the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **$60,712**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $54,808                            |   | **$5,643** |   | $5,828 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Reconciliation of fair value of plan assets**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                    |   |  |   |  |
| Balance, beginning of the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **$45,825**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $47,852                            |   | $       - |   | $       - |
| Acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **4,223**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -                                  |   | **-** |   | - |
| Actual return of plan assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **6,310**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (1,576)                            |   | **-** |   | - |
| Employer contributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **2,322**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 1,785                              |   | **300** |   | 273 |
| Employee contributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **337**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 351                                |   | **-** |   | - |
| Corporate restructuring giving rise to:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                    |   |  |   |  |
|       Settlement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **(3,447)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -                                  |   | **-** |   |  |
| Benefits paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **(2,682)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (2,587)                            |   | **(300)** |   | (273) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Balance, end of the year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **$52,888**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $45,825                            |   | $       - |   | $       - |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Unamortized amounts**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                    |   |  |   |  |
| Funded status -- (deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **$(7,824)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $(8,983)                           |   | **$(5,643)** |   | **$(5,828)** |
| Unrecognized prior service cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **264**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 163                                |   | **-** |   | **-** |
| Unamortized net actuarial loss (gain)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **2,134**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 5,534                              |   | **(473)** |   | **(476)** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Accrued benefit liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **$(5,426)**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $(3,286)                           |   | **$(6,116)** |   | **$(6,304)** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| As at December 31, 2003 and 2002, five of the Company's pension plans, included in theprevious table, had a projected benefit obligation of $42,694,000 (2002: $42,814,000), a fair value of plan assets of $39,092,000(2002: $37,186,000) and an unfunded obligation of $3,602,000 (2002: $5,628,000).  The closure of Lachine (see Note 3) resultedin a partial settlement and curtailment of one of the Company's plans.  The plan acquired with the Leroux acquisition, whichis discussed below, is excluded from these figures.                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| In 2003, the Company acquired two pension plans as part of the Leroux acquisition. These plans had assets of $4,223,000 and an accrued benefit obligation of $5,603,000 as of the acquisition date.  The deficitin the plan of $1,380,000 was included in the net assets acquired in the Leroux acquisition.  The year-end discount rate usedfor this plan was 6.25%.  Also at December 31, 2003, the Company has certain unfunded executive arrangements with an accruedbenefit obligation of $4,693,000 (2002: $4,524,000).                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The Company expects to contribute approximately $2.3 million to its defined benefit plansand $0.4 million to its other benefit plans in 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The other benefit plans primarily represent obligations to retired employees of sold orclosed businesses.  Less than 1% of all active employees are entitled to retirement benefits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Defined contribution plans**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                    |
| Fair value of plan assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                    |
|          Canadian plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **$  5,588**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $  5,142                 |
|          401(k) U.S. plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **18,181**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 17,273                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$23,769**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $22,415                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2003**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2002                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Plans in the process of being wound up**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                    |
| Fair value of plan assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **$  2,616**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $  2,455                 |
| Projected benefit obligation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **-**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | -                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| Surplus                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **$  2,616**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | $  2,455                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The plans in the process of being wound up relate to previously discontinuedoperations.  The resolution of the surplus may result in sharing arrangements with employees of those operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| As at December 31, 2003, approximately 44% of all pension plan assets were invested inequities, 30% in fixed income securities, and 26% in cash and cash equivalents.  The expected return on plan assets is basedon historical returns on the Company's Master Trust.  Management endeavours to have an asset mix of approximately 55% inequities, 40% in fixed income securities and 5% in cash and cash equivalents.  The volatility of the markets has causedmanagement to invest a greater percentage of the pension plan assets in cash and cash equivalents.  The plan assets are notinvested in either derivatives or real estate assets.                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **15.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Contingencies, Guarantees and Commitments**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The Company and certain of its subsidiaries have been named defendants in a number oflegal actions. Although the outcome of these claims cannot be determined, management intends to defend all claims and has recordedprovisions based on its best estimate of the potential losses.  In the opinion of management the resolution of these mattersis not expected to have a materially adverse effect on the Company's financial position, cash flows or operations.                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The Company and its subsidiary companies have operating lease commitments, with varyingterms, requiring approximate annual payments as follows:  2004: $8,862,000; 2005: $8,054,000; 2006: $5,991,000; 2007:$4,347,000; 2008: $3,425,000; 2009 and beyond: $6,705,000.  Rental expenses on operating leases were as follows:  2003:$10,104,000; 2002: $9,753,000 and 2001: $10,645,000.                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | The Company is incurring site cleanup and restoration costs related to properties held forresale.  Remedial actions are currently underway at several sites.  The estimated costs of these cleanups have beenprovided for based on management's best estimates.  Additional costs may be incurred at these or other sites, as site cleanupand restoration progress, but the amounts cannot be quantified at this time.                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **16.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **United States Generally Accepted Accounting Principles**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| The following table represents the material differences between Canadian and U.S.generally accepted accounting principles (GAAP):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *($000, except per share data)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **2003** |   | 2002 |   | 2001 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Net earnings for the year under Canadian GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **$  18,499** |   | $ 29,236 |   | $   8,608 |
| Amortization of transitional obligation -- pensions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **(561)** |   | (561) |   | (561) |
| Goodwill impairment - transitional loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **-** |   | (15,123) |   | - |
| Income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **-** |   | - |   | (360) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Net earnings -- U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **17,938** |   | 13,552 |   | 7,687 |
| Other comprehensive income items:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |   |  |   |  |
|      Change in currency translation adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **7,074** |   | 425 |   | (2,803) |
|      Tax effect of change in currency translationadjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **(6,165)** |   | (353) |   | 2,704 |
|      Unrealized gain in available for sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **262** |   | - |   | - |
|      Minimum pension liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **1,395** |   | 1,762 |   | (5,178) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Comprehensive earnings -- U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **$  20,504** |   | $  15,386 |   | $   2,410 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Opening retained earnings and comprehensive earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |   |  |   |  |
|      -- U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **$102,250** |   | $  95,580 |   | $103,016 |
| Dividends on common shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **(11,605)** |   | (6,466) |   | (7,596) |
| Dividends on preferred shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **(2,250)** |   | (2,250) |   | (2,250) |
| Comprehensive earnings -- U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **20,504** |   | 15,386 |   | 2,410 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Closing retained earnings and comprehensive earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |   |  |   |  |
|      -- U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **$108,899** |   | $102,250 |   | $ 95,580 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Basic earnings per common share -- U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |   |  |   |  |
|      -- continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **$      0.41** |   | $**      ** 0.30 |   | $**     ** 0.14 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Fully diluted earnings per common share -- U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |   |  |   |  |
|      -- continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **$      0.39** |   | $**      ** 0.29 |   | $**     ** 0.14 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Basic earnings per common share -- U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **$      0.39** |   | $**      ** 0.30 |   | $**     ** 0.14 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Fully diluted earnings per common share -- U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **$      0.37** |   | $**      ** 0.29 |   | $**     ** 0.14 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Statement of Financial Accounting Standards ("SFAS") No. 87, Employer's Accounting forPensions, requires that the transitional obligation be amortized over the expected average service lives of the employee grouprather than charged to retained earnings immediately as allowed under the Canadian standards.  In addition, the U.S. standardrequires the recognition of an additional minimum pension liability.  Three of the Company's plans and one executivearrangement have a minimum liability, which has been charged to other comprehensive income under U.S. GAAP. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | In June 2001, the Financial Accounting Standards Board ("FASB") issued SFAS No. 141,Business Combinations and SFAS 142, Goodwill and Other Intangible Assets.  The effect of adopting these standards is notmaterially different from the adoption of the Canadian standards (see Note 2) except that the transitional impairment loss ischarged to earnings as a cumulative effect of a change in accounting principle under U.S. GAAP.  Certain additionaldisclosures on business combinations are required by the U.S. standard.  These disclosures have been included with theCanadian disclosures (see Note 3) except the pro forma disclosure noted below. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | The following table includes the compilation of the results of the Company in accordancewith Canadian GAAP on a pro forma basis as if Acier Leroux had been acquired January 1, 2002. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| *($000, except per share amounts)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **2003** |   | 2002 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **$1,683,334** |   | $1,765,181 |
| Net income -- continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **14,588** |   | 26,825 |
| Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **10,184** |   | 19,168 |
| Basic earnings per common share -- continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **$        0.30** |   | $**        ** 0.59 |
| Basic earnings per common share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **$        0.19** |   | $**        ** 0.41 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Canadian standards require an adjustment to income when changes in income tax rates havebeen substantively enacted.  A proposed change in income tax rates resulted in a charge to income of $360,000 for the yearended December 31, 2000.  As at December 31, 2000, this tax rate change had not been enacted as required by the U.S.standards.  In 2001, this proposed change was enacted. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Other cumulative comprehensive income also includes changes in the cumulative translationaccount of $7.1 million and the taxes of $6.2 million thereon.  This account represents a reduction in the Company'sshareholders' equity and represents unrealized translation adjustments, which arise on the translation to Canadian dollars of U.S.denominated assets and liabilities.  The Company has designated certain U.S. denominated debt as a hedge of its net investmentin these U.S. subsidiaries (see Note 12).  The change in the cumulative exchange account relating to debt designated as ahedge of the Company's net investment in its foreign subsidiaries is a gain of $25.1 million in 2003 (2002 gain: $1.1 million; 2001loss: $8.0 million). |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | The Company has certain available for sale securities that are recorded at the lower ofcost or market for Canadian accounting standards and marked to market through other comprehensive income in the amount of $262,000,net of tax of $141,000 as required by U.S. standards. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| f)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | During 2003, the Company adopted SFAS 143, Accounting for Asset Retirement Obligations,SFAS 144, Accounting for the Impairment or Disposal of Long-Lived Assets, SFAS 148, Accounting for Stock-based Compensation,Transition and Disclosure and EITF 02-16 Accounting by a Customer for Certain Consideration Received from a Vendor.  Theimplementation of these standards did not differ materially from the corresponding Canadian standards except that the Companyadopted the Canadian Asset Retirement Obligation standard January 1, 2004.  The Company has asset retirement obligationsrelating to its land lease for its Thunder Bay Terminal operations.  The landlord has the option to retain the facilities orto require the Company to remove them.  The probability weighted cost of removal is not material. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| g)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | During 2002, FASB issued SFAS 145, Rescission of FASB Statements No. 4, 44 and 64 and FASBInterpretation No. 45, Guarantor's Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees ofIndebtedness of Others, which did not have a material impact on the Company's consolidated results of operations, financialposition or cash flows.  Also, during 2002, FASB issued SFAS 146, Accounting for Costs Associated with Exit or DisposalActivities.  The Company implemented this standard for transactions entered into subsequent to December 31, 2002. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| h)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | On January 1, 2001, the Company adopted SFAS 133, Accounting for Derivative Instrumentsand Hedging Activities and the corresponding amendments under SFAS 138.  SFAS 133, as amended by SFAS 138, did not have amaterial impact on the Company's consolidated results of operations, financial position or cash flows. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | U.S. accounting standards do not permit certain subtotals in the cash flow statement suchas cash from operating activities.  Accounts receivable includes an allowance for doubtful accounts of $4.5 million (2002:$4.4 million). |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| j)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | The following table indicates the significant items in the consolidated balance sheetsthat would have been affected had the consolidated financial statements been prepared in accordance with U.S. GAAP. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| *($000)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **2003** |   | 2002 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **$   13,372** |   | $   14,942 |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **3,244** |   | 2,461 |
| Bank indebtedness                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **89,575** |   | 23,406 |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **201,484** |   | 176,194 |
| Income taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **11,871** |   | 9,590 |
| Pension and benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **5,936** |   | 1,179 |
| Shareholders equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **291,051** |   | 262,926 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | In addition to the effect of the GAAP differences noted above, this table reflectsreclassification of outstanding cheques from accounts payable and deduction of the shareholder loan (Note 6) from equity. Cumulative other comprehensive income balances included in the shareholders' equity above are $(7.2 million) (2002: $(9.8million)). |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| k)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | In January 2003, FASB issued FIN 46, Consolidation of Variable Interest Entities. The Company expects to adopt this standard in fiscal 2004 and it is not expected to have a material effect on the Company's resultsof operations, financial position or cash flows. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| **17.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **Subsequent Events** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Subsequent to year-end, the Company entered into an agreement to issue 5,000,000 commonshares at an issue price of $9.00 per share for net proceeds of $42.7 million.  The Company has also granted the investmentdealer an option to purchase an additional 750,000 common shares.  In addition, the Company made an offer to purchase and aconsent solicitation to its holders of the 10% Senior Notes due June 1, 2009, whereby in addition to a consent fee of US $20.00 perUS $1,000 Note, the Company would repurchase the bonds for a price of US $1,052.50 per US $1,000 Note.  The Company has alsoannounced that it intends to sell on a private placement basis up to US $175 million of Senior Notes and will use these proceeds torepurchase its US $115.6 million 10% Senior Notes, $30 million 8% Debentures and its $30 million Class II preferred shares. Deferred financing costs of $2.6 million will be charged to income as a result of this refinancing.  In addition, the consentfee and redemption premium will result in a one-time charge estimated to be $10.5 million. |