CANAM GROUP REPORTS NET EARNINGS OF $2.1M FOR THE THIRD QUARTER OF 2010

BOUCHERVILLE, QC, Oct. 27 /CNW Telbec/ - Construction products fabricator Canam Group Inc. (TSX: CAM) today announced net earnings of $2.1M, or $0.05 per share, for the third quarter of 2010, compared with $4.4M, or $0.10 per share, for the same quarter in 2009. Consolidated sales for the quarter rose 46% to $211.9M versus $144.7M for the year-earlier quarter.

For the first nine-month period of 2010, the company's net loss was $0.9M, or $0.02 per share, compared to $15M, or $0.33 per share, for the corresponding period in 2009. Consolidated sales for the first nine months of 2010 totaled $502.9M, up 5.6% from $476.2M last year.

President and chief operating officer Marc Dutil said that the growth in third quarter sales resulted from a higher volume of structural steel construction projects and the acquisition of FabSouth earlier this year. The company has a solid backlog of $513M despite a persisting slowdown in commercial and industrial construction, primarily in the United States, which exerts strong pressure on the margins.

On October 21, Canam Group completed a $69-million public offering of convertible debentures bearing interest at 6.25% and maturing on October 31, 2015. The company also signed letters of commitment with lenders for a new revolving credit facility and non-revolving loan totaling $118M.

Canam Group's order backlog as at September 25, 2010 stood at $513M, up from $392M as at September 26, 2009.

The board of directors approved the payment of a quarterly dividend of $0.04 per share on December 31, 2010 to shareholders of record on December 17, 2010.

About Canam Group Inc.
Canam Group is a leader in the design and fabrication of construction products and solutions and a leading provider of design-build and building information modeling (BIM) services. The company operates more than 25 manufacturing plants and engineering offices in Canada, the United States, Romania, India and China, and has partnerships with companies in Saudi Arabia, the United Arab Emirates and China.

Conference call
Canam Group will hold a conference call with financial analysts and media representatives on Wednesday, October 27, 2010 at 9:00 a.m. A podcast will be available at www.canamgroup.ws and www.cnw.ca. A replay of the conference call will be available until November 10, 2010 by dialing 1-800-408-3053 and entering access code 7502286, followed by the pound key (#).

Interim Consolidated Statements of Earnings
Periods ended September 25, 2010 and September 26, 2009
(in thousands of dollars, except per share amounts) (unaudited)		3 months				9 months
			2010		2009		2010		2009
Sales		$	211,883	$	144,722	$	502,886	$	476,165
Cost of sales			182,934		116,476		434,904		382,917
Gross profit			28,949		28,246		67,982		93,248
Selling and administrative expenses			19,675		17,000		56,383		52,361
Profit sharing programs			266		654		774		1,818
Exchange loss (gain)			214		(716)		464		(998)
Gain on disposal of investments			(439)		- -		(448)		(209)
Loss (gain) on disposal of property, plant and equipment			166		101		(140)		16
			9,067		11,207		10,949		40,260
Depreciation of property, plant and equipment			4,889		4,186		14,145		12,197
Amortization of intangible assets			631		316		2,847		1,038
Financial expenses			1,542		453		3,198		1,584
Gain on revaluation of investments			- -		- -		(3,888)		- -
Earnings (loss) before income tax expense and undermentioned items			2,005		6,252		(5,353)		25,441
Income tax expense (recovery)
	Current		1,786		2,102		2,220		8,418
	Future		(1,804)		(58)		(6,743)		95
			(18)		2,044		(4,523)		8,513
Earnings (loss) before undermentioned items			2,023		4,208		(830)		16,928
Share in earnings (loss) of companies subject to significant influence			57		47		(93)		(850)
Net earnings (net loss) from continuing operations			2,080		4,255		(923)		16,078
Net earnings (net loss) from discontinued operations			- -		173		60		(1,051)
Net earnings (net loss)		$	2,080	$	4,428	$	(863)	$	15,027
Net earnings (net loss) per share
Basic:
	From continuing operations	$	0.05	$	0.09	$	(0.02)	$	0.36
	From discontinued operations		- -		0.01		- -		(0.03)
	Total	$	0.05	$	0.10	$	(0.02)	$	0.33
Diluted:
	From continuing operations	$	0.05	$	0.09	$	(0.02)	$	0.35
	From discontinued operations		- -		0.01		- -		(0.02)
	Total	$	0.05	$	0.10	$	(0.02)	$	0.33
Weighted average number of common shares (in thousands of shares)
	Basic		45,156		44,988		45,155		45,001
	Diluted		45,388		45,377		45,404		45,388
Number of common shares outstanding							45,366		45,368

Interim Consolidated Statements of Comprehensive Income (loss)
Periods ended September 25, 2010 and September 26, 2009
(in thousands of dollars) (unaudited)		3 months				9 months
			2010		2009		2010		2009
Net earnings (net loss)		$	2,080	$	4,428	$	(863)	$	15,027
Other comprehensive loss:
	Change in unrealized gains and losses on translating financial statements of self-sustaining foreign operations	$	(979)	$	(8,602)	$	(3,417)	$	(18,031)
	Unrealized gains on available-for-sale financial assets arising during the period	$	834	$	26	$	758	$	555
	Reclassification in earnings		(421)		- -		(421)		- -
	Income tax expense		(72)		(5)		(58)		(104)
Change in unrealized gains and losses on available-for-sale financial assets		$	341	$	21	$	279	$	451
Other comprehensive loss		$	(638)	$	(8,581)	$	(3,138)	$	(17,580)
Comprehensive income (loss)		$	1,442	$	(4,153)	$	(4,001)	$	(2,553)

Interim Consolidated Statements of Retained Earnings
Periods ended September 25, 2010 and September 26, 2009
(in thousands of dollars) (unaudited)	3 months				9 months
		2010		2009		2010		2009
Opening balance	$	237,399	$	238,208	$	244,029	$	232,208
Net earnings (net loss)		2,080		4,428		(863)		15,027
Dividends		(1,739)		(1,816)		(5,368)		(5,447)
Excess of acquisition cost over carrying value of acquired common shares		- -		- -		(58)		(968)
Closing balance	$	237,740	$	240,820	$	237,740	$	240,820

Interim Consolidated Balance Sheets
		As at September 25, 2010		As at December 31, 2009
(in thousands of dollars)		(unaudited)
Assets
Current assets
	Cash and cash equivalents	$	24,381	$	67,393
	Accounts receivable		196,825		99,594
	Inventories		155,099		104,540
	Income taxes recoverable		210		6,701
	Future income tax assets		9,188		1,008
	Prepaid expenses and other assets		3,984		3,484
	Current assets of discontinued operations		- -		1,230
	Total current assets		389,687		283,950
Investments			48,833		63,503
Property, plant and equipment			246,468		184,851
Property, plant and equipment held for sale			1,511		1,549
Intangible assets			12,593		1,127
Goodwill			52,284		150
Future income tax assets			219		363
Long-term receivables and other assets			22,874		21,942
Long-term assets of discontinued operations			- -		8,618
		$	774,469	$	566,053
Liabilities
Current liabilities
	Bank loans	$	23,703	$	- -
	Accounts payable and accrued liabilities		178,220		77,112
	Income taxes payable		68		635
	Future income tax liabilities		170		876
	Current portion of long-term debt		5,984		5,477
	Current portion of the balance of purchase price of subsidiaries		10,070		- -
	Current liabilities of discontinued operations		- -		1,495
	Total current liabilities		218,215		85,595
Long-term debt			125,717		62,212
Balance of purchase price of subsidiaries			22,196		- -
Deferred credits			5,119		4,749
Future income tax liabilities			11,322		11,296
Long-term liabilities of discontinued operations			- -		1,604
			382,569		165,456
Shareholders' Equity
Share capital			179,102		178,024
Retained earnings			237,740		244,029
Contributed surplus			4,514		4,862
Accumulated other comprehensive loss			(29,456)		(26,318)
			391,900		400,597
		$	774,469	$	566,053

Interim Consolidated Statements of Cash Flows
Periods ended September 25, 2010 and September 26, 2009
(in thousands of dollars) (unaudited)		3 months				9 months
			2010		2009		2010		2009
Cash flows from the following activities:
Operating activities
Net earnings (net loss) from continuing operations		$	2,080	$	4,255	$	(923)	$	16,078
Items not affecting cash and cash equivalents
	Amortization of compensation costs related to the profit sharing program - stock ownership component		347		433		1,038		1,349
	Unrealized loss (gain) on foreign currency forward contracts		- -		211		- -		(1,322)
	Gain on revaluation of investments		- -		- -		(3,888)		- -
	Gain on disposal of investments		(439)		- -		(448)		(209)
	Loss (gain) on disposal of property, plant and equipment		166		101		(140)		16
	Depreciation of property, plant and equipment		4,889		4,186		14,145		12,197
	Amortization of intangible assets		631		316		2,847		1,038
	Amortization of deferred financing expenses		62		52		179		160
	Pension expense		106		82		180		(24)
	Future income tax expense		(1,804)		(58)		(6,743)		95
	Share in loss (earnings) of companies subject to significant influence		(57)		(47)		93		850
			5,981		9,531		6,340		30,228
Net change in non-cash operating working capital items
	Decrease (increase) in accounts receivable		(36,224)		4,082		(50,045)		28,670
	Decrease (increase) in inventories		(6,708)		13,663		(34,645)		46,817
	Decrease (increase) in income taxes recoverable		5,312		(359)		5,060		1,566
	Decrease (increase) in prepaid expenses and other assets		214		(124)		623		3,407
	Increase (decrease) in accounts payable and accrued liabilities		33,511		(4,491)		42,930		(25,245)
	Increase in interest payable		558		204		1,144		185
	Increase (decrease) in income taxes payable		(301)		2,385		(778)		2,338
			(3,638)		15,360		(35,711)		57,738
Cash flows from continuing operating activities			2,343		24,891		(29,371)		87,966
Financing activities
Shares purchased by a trust in employees' name on the secondary market			- -		- -		(364)		(1,871)
Repurchase of shares			- -		- -		(127)		(2,122)
Proceeds from issuance of shares			- -		- -		125		47
Dividends			(1,764)		- -		(3,578)		(3,631)
Increase in long-term debt and bank loans			20,724		3,297		74,751		11,977
Repayment of long-term debt and bank loans			(1,020)		(880)		(4,369)		(19,724)
Deferred credits			(589)		- -		(1,255)		(235)
Cash flows from continuing financing activities			17,351		2,417		65,183		(15,559)
Investing activities
Proceeds from sale of property, plant and equipment			73		- -		580		392
Additions to property, plant and equipment			(10,560)		(4,663)		(27,600)		(17,062)
Additions to intangible assets			(144)		(86)		(329)		(416)
Acquisition of investments			- -		- -		(120)		(4,593)
Proceeds from disposal of investments			1,500		- -		1,503		1,144
Distribution from a company subject to significant influence			- -		- -		- -		300
Decrease in long-term receivables			2,868		826		4,583		2,500
Increase in long-term receivables			(67)		(1,631)		(135)		(4,290)
Repayment of balance of purchase price of subsidiaries			(2,630)		- -		(2,630)		- -
Business acquisitions, net of cash acquired			(15,601)		- -		(54,285)		- -
Cash flows from continuing investing activities			(24,561)		(5,554)		(78,433)		(22,025)
Effect of changes in foreign exchange rate on cash and cash equivalents			138		(128)		(589)		(439)
Net change in cash and cash equivalents from continuing operations			(4,729)		21,626		(43,210)		49,943
Cash flows from discontinued operations
	Operating activities		- -		610		184		641
	Investing activities		- -		93		14		378
			- -		703		198		1,019
Cash and cash equivalents, beginning of period			29,110		44,252		67,393		15,619
Cash and cash equivalents, end of period		$	24,381	$	66,581	$	24,381	$	66,581
Supplementary information
	Interest paid	$	1,127	$	669	$	3,212	$	2,717
	Income taxes paid (recovered), net	$	(3,966)	$	(1,341)	$	(3,261)	$	3,699

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