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Press release from CNW Group

Vicwest Inc. Reports Solid First Quarter Growth

Monday, June 13, 2011

Vicwest Inc. Reports Solid First Quarter Growth18:04 EDT Monday, June 13, 2011OAKVILLE, ON, June 13, 2011 /CNW/ - Vicwest Inc. (the "Company") (TSX: VIC, VIC.DB) today reported its results for the three months ended March 31, 2011.Consolidated Results SummaryRevenue increased 7.8% to $82.1 million from $76.1 million a year ago.Gross profit increased 10.7% to $15.9 million (19.3% gross margin) compared to $14.3 million (18.8% gross margin) a year ago.EBITDA1grew 16.5% to $5.3 million (6.5% EBITDA margin1) from $4.6 million (6.0% EBITDA margin1) a year ago.Net income increased 11.0% to $2.7 million ($0.15 per share diluted) compared to $2.4 million ($0.14 per share diluted) a year ago on higher gross profit and a $1.1 million income tax recovery."First quarter results continued to reflect our growing leadership positions in diversified markets," said Colin Osborne, President and Chief Executive Officer. "In addition to strong contributions from our recently acquired US operations, we achieved growth in liquid storage tank sales, higher shipments to international agriculture customers and good order intake. In the context of a still fragile recovery in certain market segments, the ongoing challenges posed by raw material input costs and first quarter seasonality, we opened the year with solid performance, particularly at Westeel."Divisional ResultsVicwest Building Products revenue grew 7.8% to a first quarter record of $44.4 million from $41.2 million in the first quarter of 2010.  First quarter net loss was $4.6 million compared to $4.3 million in the prior year due to the normal seasonality of the business as well as continued pressure on margin as a result of market conditions which have not yet allowed recovery of input cost increases.Westeel Storage Solutions ("Westeel") revenue increased 7.9% to $37.7 million from $34.9 million in the first quarter of 2010 on higher liquid storage tank sales for the oil and gas industry and growth in international agricultural product sales. First quarter net income increased 10.1% to $7.9 million on higher gross profit and lower SG&A costs.International Financial Reporting Standards ("IFRS")This is the first period in which Vicwest Inc. reported under IFRS and as a corporate entity. Prior to December 31, 2010, the Company was an income trust reporting under Canadian Generally Accepted Accounting Principles.A full explanation of related accounting changes is found in the Company's Notes to Condensed Consolidated Interim Financial Statements for the first quarter.OutlookIn the short term, the Company's growing performance potential will be constrained by higher steel prices and the fragile state of recovery in certain markets. Accordingly, profit margins are likely to remain low until raw material input costs are offset toward the end of 2011 - even while management expects second quarter revenue to be healthy based on solid backlogs.  Westeel Storage Solutions' and Vicwest Building Products' March 31st backlogs were 50% and 44% higher (excluding All Weather) respectively, than at the same time in 2010.For the medium term, the Company expects its broader growth platforms, including its expanding US and international distribution networks for on-farm and commercial products as well as its All Weather investment, to enhance its prospects."We continue to position our business for profitable growth and we're very pleased with the advancements made to expand our available markets through product development, distribution partnerships and acquisitions," said Mr. Osborne. "Our growth strategies, combined with our shared services model, will allow us to make the most of the significant opportunities we see before us."Dividend Declaration The Board of Directors today declared a dividend for the second quarter 2011. The quarterly dividend, in the amount of $0.27 per share, is payable July 15, 2011 to all Vicwest Inc. shareholders of record on June 30, 2011.First Quarter Conference Call and WebcastVicwest Inc. will host its first quarter 2011 conference call and webcast on June 14, 2011 beginning at 11 am ET. To participate in the teleconference, the numbers are 416-644-3414 or 1-800-814-4859. To participate in the webcast, please visit Vicwest's website at (News & Events section).ABOUT VICWEST INC.Vicwest Inc. is a leading manufacturer and distributor of building construction products, and steel containment products for agricultural grain, fertilizer and liquid storage. Through its Vicwest Building Products division, the Company fabricates and markets metal roofing, siding and other metal building products under the trade names Vicwest, Mercury Metals, Valley Truss & Metal, RCA Metal and AWIP-Vicwest USA. The Company's Westeel Storage Solutions division manufactures storage solutions for agricultural grain and fertilizer, as well as liquid storage tanks and accessories. These products are manufactured and distributed under the trade names Westeel, Northern Steel Industries and NSI. Through a global alliance, Westeel distributes Buhler Industries-manufactured grain handling equipment in Canada under the Westeel brand while Buhler Industries markets and sells Westeel-manufactured products through its US distribution network. With approximately 1,100 dedicated employees and strategically located manufacturing facilities, the Company delivers superior quality products and excellent service to customers in chosen markets. Vicwest Inc. is a member of the S&P/TSX SmallCap Index. For more information, visit STATEMENTSCertain statements in this press release constitute forward-looking statements within the meaning of applicable securities laws.  Forward-looking statements include, but are not limited to, management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue", or similar expressions suggesting future outcomes or events.  Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements.  Readers are encouraged to review the most recently filed Management's Discussion and Analysis and other disclosure documents filed by the Company with Canadian securities regulatory agencies and commissions. Readers are cautioned not to place undue reliance on the Company's forward-looking statements.  The forward-looking statements contained herein are made as of the date of this press release and except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise._____________________________________________________________________________________1 Earnings before interest, taxes (other than capital taxes), depreciation, and amortization and fair value adjustments to financial instruments. EBITDA and EBITDA margin are non-IFRS measures.For further information: Colin Osborne   Edward (Ted) A. Mahood, C.A. President & Chief Executive Officer   Chief Financial Officer Vicwest Inc.   Vicwest Inc. Tel:  (905) 469-5700   Tel: (905) 469-5706 Fax: (905) 825-1090   Fax: (905) 825-1090