A. M. Castle & Co. Reduces Quarterly Cash Dividend

Apr 26, 2001, 01:00 ET from A. M. Castle & Co.

    FRANKLIN PARK, Ill., April 26 /PRNewswire/ -- A. M. CASTLE & CO.
 (Amex:   CAS), North America's largest industrial distributor of specialty
 metals, today announced that its Board of Directors approved a quarterly
 dividend of 12 cents per share.  This dividend, payable May 18, 2001 to
 shareholders of record May 4th, marks the company's 263rd consecutive
 quarterly of cash distributions to shareholders.
     The dividend is a reduction from the company's previous dividend rate of
 19.5 cents per share.  Management noted that the change is part of a
 comprehensive plan which includes previously announced inventory reduction
 plans, the sale of underutilized assets and non-strategic investments, and
 earnings improvements driven by expense reductions.  Taken together, the
 changes are designed to reduce the company's debt-to-capital ratio to 45% or
 below over the next few years.
     In making the announcement the Board reiterated its long-standing
 commitment to providing a significant dividend yield as part of its total
 return value proposition to shareholders.  Given the current state of the
 metals industry, and the company's recent earnings history, the Board felt it
 prudent to reduce the dividend at this time.  Based on Castle's closing price
 of $9.30 on April 25, 2001 the stock has a dividend yield of 5.2% following
 this change.
     At the company's annual meeting held earlier today, shareholders
 re-elected all twelve members of the Board of Directors to one-year terms;
 adopted Castle's 2000 Restricted Stock and Stock Option Plan; approved
 re-incorporation from the State of Delaware into a newly formed Maryland
 corporation; and ratified the appointment of Arthur Andersen LLP as the
 company's independent auditors for the year 2001.
     Founded in 1890, A. M. Castle & Co. provides highly engineered materials
 and value-added services to a widely diversified range of industrial
 companies.  The company is recognized as the leading industrial distributor of
 specialty metals such as carbon, alloy and stainless steels; aluminum; nickel
 alloy; titanium; and copper and brass; as well as the premier provider of
 materials management programs designed to reduce customer's total costs.
 Through its subsidiary, Total Plastics, Inc., the company also distributes a
 broad range of value-added industrial plastics.  Together, Castle and its
 affiliated companies operate over 50 locations throughout North America.  Its
 common stock is traded on the American and Chicago Stock Exchanges under the
 ticker symbol "CAS".
 
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SOURCE A. M. Castle & Co.
    FRANKLIN PARK, Ill., April 26 /PRNewswire/ -- A. M. CASTLE & CO.
 (Amex:   CAS), North America's largest industrial distributor of specialty
 metals, today announced that its Board of Directors approved a quarterly
 dividend of 12 cents per share.  This dividend, payable May 18, 2001 to
 shareholders of record May 4th, marks the company's 263rd consecutive
 quarterly of cash distributions to shareholders.
     The dividend is a reduction from the company's previous dividend rate of
 19.5 cents per share.  Management noted that the change is part of a
 comprehensive plan which includes previously announced inventory reduction
 plans, the sale of underutilized assets and non-strategic investments, and
 earnings improvements driven by expense reductions.  Taken together, the
 changes are designed to reduce the company's debt-to-capital ratio to 45% or
 below over the next few years.
     In making the announcement the Board reiterated its long-standing
 commitment to providing a significant dividend yield as part of its total
 return value proposition to shareholders.  Given the current state of the
 metals industry, and the company's recent earnings history, the Board felt it
 prudent to reduce the dividend at this time.  Based on Castle's closing price
 of $9.30 on April 25, 2001 the stock has a dividend yield of 5.2% following
 this change.
     At the company's annual meeting held earlier today, shareholders
 re-elected all twelve members of the Board of Directors to one-year terms;
 adopted Castle's 2000 Restricted Stock and Stock Option Plan; approved
 re-incorporation from the State of Delaware into a newly formed Maryland
 corporation; and ratified the appointment of Arthur Andersen LLP as the
 company's independent auditors for the year 2001.
     Founded in 1890, A. M. Castle & Co. provides highly engineered materials
 and value-added services to a widely diversified range of industrial
 companies.  The company is recognized as the leading industrial distributor of
 specialty metals such as carbon, alloy and stainless steels; aluminum; nickel
 alloy; titanium; and copper and brass; as well as the premier provider of
 materials management programs designed to reduce customer's total costs.
 Through its subsidiary, Total Plastics, Inc., the company also distributes a
 broad range of value-added industrial plastics.  Together, Castle and its
 affiliated companies operate over 50 locations throughout North America.  Its
 common stock is traded on the American and Chicago Stock Exchanges under the
 ticker symbol "CAS".
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X70832641
 
 SOURCE  A. M. Castle & Co.