RUSSEL METALS INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
		June 30,	Dec. 31,
($000)		2003	2002
ASSETS
Current
Cash		$    17,872	$    25,068
Accounts receivable		218,246	201,675
Inventories		265,949	329,415
Prepaid expenses and other assets		5,180	6,077
Income taxes recoverable		1,913	1,306
		509,160	563,541
Property, Plant and Equipment		111,194	110,512
Deferred Financing Charges		4,169	4,962
Goodwill		2,295	2,709
Future Income Tax Assets		9,679	10,698
Other Assets		2,234	3,172
		$  638,731	$  695,594
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank indebtedness		$             -	$   21,141
Accounts payable and accrued liabilities		171,532	188,585
Current income taxes payable		1,942	2,487
		173,474	212,213
Long-Term Debt		186,673	212,602
Pensions and Benefits		9,902	9,590
Future Income Tax Liabilities		15,171	8,749
		385,220	443,154
Shareholders' Equity
Preferred shares		30,000	30,000
Shareholders' equity		223,511	222,440
		253,511	252,440
		$  638,731	$  695,594
On Behalf of the Board,
(Signed) Carl R. Fiora	(Signed) Arni C. Thorsteinson
Director	Director

RUSSEL METALS INC.
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(UNAUDITED)
	Quarters ended		Six Months Ended
	June 30,		June 30,
($000, except per share data and number of shares)	2003	2002	2003	2002
Segment Revenues
Service center distribution	$   192,345	$   194,098	$   386,558	$   372,610
Energy sector distribution	71,152	67,516	154,941	141,543
Steel import/export	72,598	85,046	160,267	157,122
Other	3,661	4,863	5,011	6,111
	$   339,756	$   351,523	$   706,777	$   677,386
Segment Operating Profits
Service center distribution	$       7,448	$       9,450	$      13,520	$     15,418
Energy sector distribution	1,486	2,836	5,653	6,814
Steel import/export	2,483	6,443	6,133	10,344
Other	1,360	2,490	390	1,720
Corporate expenses	(2,176)	(2,199)	(4,486)	(4,252)
Earnings before the following	10,601	19,020	21,210	30,044
Foreign exchange gain	-	748	348	739
Interest expense	(4,871)	(4,939)	(9,975)	(10,070)
Earnings before income taxes	5,730	14,829	11,583	20,713
Provision for income taxes	(2,155)	(5,727)	(4,421)	(8,097)
Net earnings for the period	3,575	9,102	7,162	12,616
Retained earnings --
Dividends on preferred shares	(562)	(562)	(1,125)	(1,125)
Earnings available to common
shareholders	3,013	8,540	6,037	11,491
Dividends on common shares	(2,670)	(1,900)	(5,337)	(1,900)
Retained earnings, beginning of the period	106,215	88,289	105,858	100,461
Adjustment for goodwill impairment	-	-	-	(15,123)
Retained earnings, end of the period	$  106,558	$    94,929	$  106,558	$    94,929
Basic earnings per common share	$        0.08	$        0.22	$        0.16	$        0.30
Diluted earnings per common share	$        0.08	$        0.21	$        0.16	$        0.29
Number of Shares
Common shares
Average for the period
Basic	38,150,722	38,009,506	38,115,382	37,995,581
Diluted	41,431,322	39,975,006	40,818,482	39,706,081
End of the period	38,175,601	38,045,501	38,175,601	38,045,501
Class II preferred shares, Series C	1,200,000	1,200,000	1,200,000	1,200,000

RUSSEL METALS INC.
CONSOLIDATED CASH FLOW STATEMENTS
(UNAUDITED)
	Quarters ended		Six Months Ended
	June 30,		June 30,
($000)	2003	2002	2003	2002
Operating activities
Net earnings for the period	$      3,575	$      9,102	$      7,162	$    12,616
Depreciation and amortization	3,585	3,799	7,201	7,664
Future income taxes	(618)	3,797	437	4,918
Loss (gain) on sale of fixed assets	(7)	(88)	8	34
Foreign exchange gain	-	(748)	-	(739)
Cash from operating activities before
working capital	$      6,535	$     15,862	$      14,808	$    24,493
Changes in non-cash working capital items
Accounts receivable	1,366	(7,677)	(24,447)	(19,339)
Inventories	9,579	(8,824)	48,835	15,946
Accounts payable and accrued liabilities	9,851	6,403	(11,828)	18,691
Current income taxes	(2,560)	3,098	(1,526)	3,102
Other	(220)	(677)	897	(235)
Change in non-cash working capital	18,016	(7,677)	11,931	18,165
Cash from operating activities	24,551	8,185	26,739	42,658
Financing activities
Decrease in bank borrowing	(12,259)	-	(21,141)	-
Issue of common shares	219	215	431	215
Dividends on common shares	(2,670)	(1,900)	(5,337)	(1,900)
Dividends on preferred shares	(562)	(562)	(1,125)	(1,125)
Cash used in financing activities	(15,272)	(2,247)	(27,172)	(2,810)
Investing activities
Purchase of business	-	-	-	(4,387)
Purchase of fixed assets	(6,219)	(4,099)	(10,452)	(5,399)
Proceeds on sale of fixed assets	124	1,397	145	2,233
Other	4,083	(2,582)	3,544	(2,330)
Cash used in investing activities	(2,012)	(5,284)	(6,763)	(9,883)
Increase (decrease) in cash	7,267	654	(7,196)	29,965
Cash position, beginning of the period	10,605	46,462	25,068	17,151
Cash position, end of the period	$   17,872	$   47,116	$   17,872	$   47,116
Supplemental information:
Interest Paid	$     9,397	$   10,197	$     9,613	$   10,122
Income Taxes Paid	$     1,725	$     1,255	$     5,540	$     2,462

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2003
1.	These interim consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles; however, they do not include all of the disclosure requirements for annual consolidated financial statements.  These interim consolidated financial statements follow the same accounting policies disclosed in note 1 to the 2002 annual consolidated financial statements.  These interim consolidated financial statements should be read in conjunction with the 2002 annual consolidated financial statements including notes thereto.  These interim consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the periods reported.
2.	Economic Cycle
	All three of the metals operating segments are significantly affected by economic cycles.  Revenues and operating profits in the energy sector are also affected by oil and gas drilling in western Canada, which is predominantly carried out during the period from October to March.  For these reasons, the results of operations for the periods shown are not necessarily indicative of the results for the full year.
3.	Interest Expense

	Quarters Ended		Six Months Ended
	June 30,		June 30,
($000)	2003	2002	2003	2002
Interest on long-term debt	$4,817	$5,102	$9,786	$10,296
Other interest expense (income)	54	(163)	189	(226)
Total interest	$4,871	$4,939	$9,975	$10,070

4.	Stock-based Compensation
	During the quarter ended June 30, 2003, the Company issued 60,000 stock options (2002 - 70,000) at an exercise price of $5.47 (2002 - $4.80).  The assumptions used in the Black Scholes option-pricing model are not materially different from those disclosed in Note 11 to the 2002 annual consolidated financial statements.
	Pro-forma net earnings and earnings per share under the fair value-based method of accounting for stock options are as follows:

	Quarters Ended		Six Months Ended
	June 30,		June 30,
($000, except per share data)	2003	2002	2003	2002
Net earnings for the period	$3,396	$ 8,909	$6,810	$12,238
Basic earnings per share	$  0.07	$    0.22	$  0.15	$    0.29
Diluted earnings per share	$  0.07	$    0.21	$  0.15	$    0.28

5.	Subsequent Event
	On July 3, 2003, the Company successfully completed its offers to purchase all of the outstanding Class A multiple voting shares and Class B subordinate voting shares and all of the outstanding 8% convertible unsecured subordinated debentures and 7.25% convertible unsecured subordinated debentures of Acier Leroux inc.  Class A multiple voting shares validly tendered under the offer represented 99.52% of the issued and outstanding Class A shares.  Class B subordinate voting shares validly tendered under the offer represented 97.53% of the issued and outstanding Class B shares.  Debentures validly tendered under the offer represented 86.61% of the outstanding 8% convertible unsecured subordinated debentures and 87.2% of the outstanding 7.25% convertible unsecured subordinated debentures.
	The Company issued 3,546,874 shares and paid $65,631,000 in cash in consideration for the shares and debentures tendered under the offer.  The Company has initiated the process to acquire ownership of 100% of the shares of Acier Leroux under the provisions of the Companies Act (Quebec) as disclosed in its May 14, 2003 Offering Circular.  Acier Leroux is redeeming the remaining debentures effective August 27, 2003.