TORONTO, March 3, 2011 /PRNewswire/ -- "I am pleased to report that ShawCor's fourth quarter financial results showed a continued improvement from the levels seen in the first half of this year. The Company is now benefiting from increased small diameter pipeline project activity in North America, the US$185 million PNG LNG pipe coating project in Asia Pacific is in full production, and our EMAR operations have commenced production on the US$ 85 million Total Laggan - Tormore project", said Bill Buckley, President and CEO of ShawCor Ltd.

Mr. Buckley added, "During the fourth quarter of 2010 and in the first two months of 2011, the Company's bidding activity has reached an unprecedented level with outstanding firm bids now exceeding $1.5 billion. Based on our expectation that many of the project bids will proceed to full development, and several will be awarded to the Company, we remain confident that 2011 offers the potential for growth in the Company's order backlog."

Financial summary Three Months Ended Year Ended December 31, December 31, (in thousands of Canadian dollars except per share amounts) 2010 2009 2010 2009 Operating Results Revenue $ 292,086 $ 260,911 $ 1,034,163 $ 1,183,978 Cost of goods sold 176,293 154,183 623,641 695,521 Gross profit 115,793 106,728 410,522 488,457 Selling, general and administrative expenses 50,371 48,638 221,440 219,557 Research and development expenses 2,788 3,103 11,050 10,967 Foreign exchange (gains) losses (1,749) 1,284 (5,745) 3,790 Amortization of property, plant and equipment 12,805 14,044 50,376 57,244 Amortization of intangible assets 1,958 1,095 5,246 4,380 Impairment of intangible assets and goodwill 1,166 - 1,166 - Income from operations 48,454 38,564 126,989 192,519 Gain on revaluation of investment 17,979 - 17,979 - Investment loss on long-term investment (1,939) - (1,939) - Interest expense - net (451) (762) (2,503) (4,672) Income before income taxes 64,043 37,802 140,526 187,847 Income taxes 13,275 6,276 35,136 56,397 Net income 50,768 31,526 105,390 131,450 Net Income per share (Class A and B) Basic $ 0.72 $ 0.44 $ 1.49 $ 1.86 Diluted 0.71 0.43 1.48 1.85 Cash flow Cash provided by $ $ $ $ operating activities 33,435 141,522 53,244 299,333 Additions to property, plant and equipment 15,327 8,432 48,723 34,358 EBITDA Net Income $ 50,768 $ 31,526 $ 105,390 $ 131,450 Add: Income taxes 13,275 6,276 35,136 56,397 Interest expense, net 451 762 2,503 4,672 Investment loss from long-term investment 1,939 - 1,939 - Gain on revaluation of investment (17,979) - (17,979) - Impairment of intangible asset and goodwill 1,166 - 1,166 - Amortization of property, plant and equipment and intangible asset 14,763 15,139 55,622 61,624 EBITDA(a) $ 64,383 $ 53,703 $ 183,777 $ 254,143

(a) EBITDA is a non-GAAP measure calculated by adding back to net income the sum of net interest expense, taxes, depreciation/amortization of property, plant and equipment and intangible assets, and impairment of intangible assets and goodwill. EBITDA does not have a standardized meaning prescribed by GAAP and is not necessarily comparable to similar measures provided by other companies. EBITDA is used by many analysts in the oil and gas industry as one of several important analytical tools. The above is the calculation of EBITDA for the periods presented.

Financial Position December 31, December 31, 2010 2009 Operating working capital (note 2) $ 161,296 $ 84,916 Total assets 1,231,182 1,185,977 Shareholders' equity per share (Class A and $ 11.93 $ 11.21 B) (note 3)

Note 2: Operating working capital is defined as working capital minus cash and cash equivalents, current future income taxes, the current portion of long-term debt, current obligations under capital leases and working capital related to discontinued operations.

Note 3: Shareholders' equity per share is a non-GAAP measure calculated by dividing shareholders' equity by the number of Class A and Class B shares outstanding at the date of the balance sheet.

1.0 OUTLOOK

The outlook for market activity in the Company's Pipeline and Pipe Services Segment and in the Petrochemical and Industrial Segment is outlined below:

Pipeline Segment - North America

The Company expects to see modest growth in the North America region in 2011 with further strengthening in 2012 based on expected steady improvement in oil and gas well drilling and the development of a number of major projects for offshore pipelines in the Gulf of Mexico.

The outlook for offshore Gulf of Mexico pipeline activity has improved significantly with Chevron's decision to proceed with the development of the Jack and St. Malo deepwater oil fields. By securing this important $40 million project, ShawCor is well positioned to benefit from the expected growth in deepwater Gulf of Mexico oil field development in 2012 and beyond.

In contrast to the weakness experienced in 2009 and the first half of 2010, the Company has begun to see the benefit on demand for its products and services as a result of increased well drilling and completions throughout North America. This trend is expected to continue in 2011 and should be a source of revenue growth for the Company. However, with the completion in 2011 of contracted pipe coating for the TransCanada Keystone XL project, the expected improvement in small diameter volumes will be partially offset by lower large diameter project activity, at least until the next cycle of pipeline infrastructure construction is implemented to connect new and growing sources of supply to continental and international markets.

Pipeline Segment - Latin America

During the fourth quarter of 2010, the Company completed the acquisition of 100% of ShawCor's pipe coating operation in Brazil. This strategic initiative was undertaken to position ShawCor to benefit from the growth in pipeline infrastructure as Brazil's vast deepwater oil resources are developed over the next twenty years. While it will likely be beyond 2011 before the pace of development accelerates, the Company does expect to see a modest increase in volume in Brazil in 2011, both as a result of the full consolidation of the Brazil operation and based on stronger project activity, with the P55 riser program scheduled for production in the second and third quarters of the year.

Elsewhere in the Latin America region, the Company expects activity in Mexico to be consistent with 2010 while other markets in South America offer growth potential.

Pipeline Segment - EMAR

Project activity in the Europe, Middle East, Africa, Russia ("EMAR") region is expected to improve in 2011 over 2010 primarily due to the planned execution of the U.S. $93 million Total Laggan-Tormore project as well as the shift of production from the fourth quarter of 2010 to the first half of 2011 on the Ras Al Zur water pipeline project in Saudi Arabia. Beyond 2011, expansion opportunities are under evaluation for several geographic markets in the region where the Company does not currently have pipe coating facilities.

Pipeline Segment - Asia Pacific

During 2010, revenue generated from the Asia Pacific region reached a record level due to the execution of the $185.0 million PNG LNG and $40.0 million Epic Energy QSN3 projects plus a number of other projects. Production will be completed on both projects in 2011 and this activity, coupled with several large projects in South East Asia anticipated for the second half of 2011, should allow the Company's Asia Pacific region to continue to generate revenue in line with the prior year.

Petrochemical and Industrial Segment

Following the abrupt decline in activity associated with the global economic recession in late 2008 and 2009, the Petrochemical and Industrial segment's markets have shown steady improvement. The Company's operations in Europe have in particular seen significant improvement, with increased shipments to the major German automotive manufacturers. In 2011 and beyond, continued strength in the Company's European operations coupled with modest growth in North America and the continued ramp up of production in the recently established China facility should generate year over year improvement in revenue and operating income.

Order Backlog

The improvement in pipeline outlook has not yet been reflected in the Company's order backlog, representing customer orders expected to be completed within one year. The order backlog totaled $374.6 million at December 31, 2010, a level slightly below the backlog of $382.2 million at the end of the third quarter of 2010 and lower by 8.7% from the $410.5 million level at the start of the year. During the fourth quarter of 2010 and first quarter of 2011, the Company submitted firm project bids totaling in excess of $1.5 billion. These bids relate to projects in Asia Pacific, the Middle East and Northern Europe and represent an unprecedented level of bidding activity for ShawCor. Many of these projects are expected to receive customer investment approval in 2011 and, if successfully awarded to the Company, offer the potential to increase ShawCor's backlog during 2011.

2.0 RESULTS FROM OPERATIONS

2.1 Consolidated Information

Revenue

The following table sets forth revenue by reportable operating segment for the following periods:

(in thousands of C$) Three months ended Year Ended December September December December December 31, 31, 31, 31, 31, 2010 2010 2009 2010 2009 Pipeline and Pipe Services $267,780 $253,447 $235,757 $920,157 $1,072,858 Petrochemical and Industrial 25,878 28,921 25,601 115,783 114,935 Elimination (1,572) 591 (447) (1,777) (3,815) Consolidated $292,086 $282,959 $260,911 $1,034,163 $1,183,978

Fourth Quarter 2010 versus Third Quarter 2010

Consolidated revenue of $292.1 million in the fourth quarter of 2010 increased by $9.1 million, or 3% from $283.0 million for the third quarter of 2010 due to an increase in the Pipeline and Pipe Services segment, partially offset by lower revenue in the Petrochemical and Industrial segment.

Revenue for the Pipeline and Pipe Services segment was $14.3 million higher in the fourth quarter of 2010 than in the third quarter, because of higher revenue in North America and EMAR which was partially offset by lower revenue in Latin America and Asia Pacific. See section 3.1 and 3.2 - Segment information, for additional disclosure with respect to the change in revenue.

Fourth Quarter 2010 versus Fourth Quarter 2009

Consolidated revenue of $292.1 million in the fourth quarter of 2010 increased by $31.2 million, or 12%, from $260.9 million for the fourth quarter of 2009 due to strong growth in the Pipeline and Pipe Services segment.

Revenue for the Pipeline and Pipe Services segment was $32.0 million higher in the fourth quarter of 2010 than in the fourth quarter of 2009, mainly due to higher revenue in North America and EMAR which was partially offset by lower revenue in Latin America and Asia Pacific. See section 3.1 - Segment information, for additional disclosure with respect to the change in revenue in the Pipeline and Pipe Services segment.

Twelve Months ended December 31, 2010 versus Twelve Months ended December 31, 2009

Consolidated revenue decreased by $150.0 million, or 13%, from $1,184 million in 2009 to $1,034 million in 2010, due to a decrease in revenue in the Pipeline and Pipe Services segment.

Pipeline and Pipe Services revenue decreased by $152.7 million, or 14%, from $1,072.9 million in 2009 to $920.2 million in 2010. The decrease was due to the unfavourable effect of foreign exchange fluctuations combined with lower revenue in EMAR and Latin America of $76.1 million and $132.4 million, respectively, and was partially offset by an increase in revenue from North America and Asia Pacific of $18.7 million and $37.1 million, respectively. See section 3.1 - Pipeline and Pipe Services segment for additional information with respect to the changes in revenue in the Pipeline and Pipe Services segment.

Operating Income

The following table sets forth income from operations and operating margin for the following periods:

(in thousands of C$) Three months ended Year Ended December September December December December 31, 31, 31, 31, 31, 2010 2010 2009 2010 2009 Operating Income $ 48,454 44,743 38,564 126,989 $ 192,519 Operating Margin(a) 16.6% 15.8% 14.8% 12.3% 16.3% (a) Operating margin is defined as income from operations divided by revenue.

Fourth Quarter 2010 versus Third Quarter 2010

Operating income increased by $3.8 million, or 8.4%, from $44.7 million during the third quarter of 2010 to $48.5 million during the fourth quarter of 2010, primarily due to an increase in revenue as explained above.

Fourth Quarter 2010 versus Fourth Quarter 2009

Operating income increased by $9.9 million, or 26%, from $38.6 million for the fourth quarter of 2009 to $48.5 million for the fourth quarter of 2010, mainly due to an increase in revenue as explained above and foreign exchange gains of $1.7 million recorded in the fourth quarter of 2010 compared to a foreign exchange loss of $1.3 million in the prior year.

Twelve Months ended December 31, 2010 versus Twelve Months ended December 31, 2009

Operating income decreased by $65.5 million from $192.5 million in 2009 to 127.0 million in 2010, mainly due to the reduction in revenue as explained above and a decrease in the operating margin of 3.9 percentage points. The decrease in operating margin was attributable to the Pipeline and Pipe Services segment and was due to the under absorption of fixed manufacturing overhead, a slight decline in segment contribution margin and the unfavourable effect of foreign exchange fluctuations - See section 2.2 - Foreign Exchange impact.

Income taxes

Fourth Quarter 2010 versus Third Quarter 2010

The Company recorded income tax expense of $13.3 million (20.7% of income before income taxes) in the fourth quarter of 2010, compared to income tax expense of $10.7 million (24.0% of income before income taxes) in the third quarter of 2010. The effective income tax rate in the fourth quarter was lower than the Company's expected effective income tax rate of 30.5%, mainly due to the fact that a substantial portion of the Company's taxable income in the fourth quarter of 2010 was earned in Asia Pacific and other jurisdictions where the expected tax rate is 25% or less, combined with the fact that the $18.0 million gain on revaluation of investment was not taxable.

Fourth Quarter 2010 versus Fourth Quarter 2009

The Company recorded income tax expense of $13.3 million (20.7% of income before income taxes) in the fourth quarter of 2010, compared to income tax expense of $6.3 million (16.6% of income before income taxes) in the fourth quarter of 2009. The effective income tax rate in the fourth quarter was lower than the Company's expected effective income tax rate of 30.5%, for the reasons discussed above.

Twelve Months ended December 31, 2010 versus Twelve Months ended December 31, 2009

The Company recorded income tax expense of $35.1 million (25.0% of income before income taxes) for the year ended December 31, 2010, compared to income tax expense of $56.4 million (30.0% of income before income taxes) for the year ended December 31, 2009. The effective income tax rate for the year ended December 31, 2010 was lower than the Company's expected effective income tax rate of 30.5%, due to a significant portion of the Company's taxable income being earned in Asia Pacific and other jurisdictions where the expected tax rate is 25% or less, combined with the fact that the $18.0 million gain on revaluation of investment was not taxable.

Net Income

Fourth Quarter 2010 versus Third Quarter 2010

Net income increased by $17.1 million, or 51.0% from $33.7 million in the third quarter to $50.8 million in the fourth quarter of 2010. The increase was primarily driven by the increased income from operations as discussed above, the gain on revaluation of investment of $18.0 million, and the lower tax rate recorded in the fourth quarter of 2010.

Fourth Quarter 2010 versus Fourth Quarter 2009

Net income increased by $19.3 million, or 61%, from $31.5 million in the fourth quarter of 2009 to $50.8 million in the fourth quarter of 2010. The increase was primarily driven by the increased income from operations as discussed above, the gain on revaluation of investment of $18.0 million and the lower tax rate recorded in the fourth quarter of 2010.

Twelve Months ended December 31, 2010 versus Twelve Months ended December 31, 2009

Net income decreased by $26.1 million, or 20.0%, from $131.5 million in 2009 to $105.4 million in 2010. The decrease was primarily due to the decrease in revenue and income from operations as explained above and was partially offset by a gain on revaluation of investment of $18.0 million and a 5.0 percentage point reduction in the effective income tax rate from 30.0% in 2009 to 25.0% in 2010.

2.2 Foreign Exchange Impact

The following table sets forth the significant currencies in which the Company operates and the average foreign exchange rates for these currencies versus Canadian dollars, for the following periods:

Three Months Ended Year Ended December 31, December 31, 2010 2009 2010 2009 U.S. dollar 1.0157 1.0544 1.0351 1.1450 Euro 1.3797 1.5569 1.3785 1.5958 British Pounds 1.5935 1.7154 1.5987 1.7763

The following table sets forth the impact on revenue, income from operations and net income, compared with the prior year period, as a result of foreign exchange fluctuations on the translation of foreign currency operations:

Three months Year ended (in ended December 31, 2010 thousands of December 31, C$) 2010 Revenue $ (10,427) $ (77,776) Income from (1,138) (18,536) operations Net income (986) (12,706)

3.0 SEGMENT INFORMATION

3.1 Pipeline and Pipe Services segment

The following table sets forth, by geographic location, the revenue, income from operations ("Operating Income") and operating margin for the Pipeline and Pipe Services segment for the following periods:

(in Three months ended Years ended thousands of C$) December 31, September December December December 2010 30, 31, 31, 31, 2010 2009 2010 2009 North $ 116,969 $ 113,590 $ 84,846 $ 412,622 $ 393,926 America Latin 17,647 19,730 29,209 56,400 188,758 America EMAR 65,058 39,204 50,340 184,768 260,861 Asia 68,105 80,923 71,364 266,366 229,314 Pacific Total $ 267,780 $ 253,447 $ 235,759 $ 920,157 $ 1,072,859 Revenue Operating $ 45,612 $ 43,712 $ 43,819 $ 133,617 $ 213,123 Income Operating 17.0% 17.2% 18.6% 14.5% 19.9% Margin

Fourth Quarter 2010 versus Third Quarter 2010

Revenue in the fourth quarter of 2010 was $267.8 million, an increase of $14.4 million, or 6%, over the third quarter of 2010, with a significant improvement in the EMAR region offsetting a reduction in Asia Pacific:

- In North America, revenue increased by $3.4 million, or 3%, due to increased volumes of small diameter pipe coating, flexible composite pipe and drill pipe inspection volumes from the general improvement in well completion activity throughout North America. - Revenue in Latin America declined by $2.1 million as a result of lower volumes in Mexico following the third quarter completion of several offshore concrete weight coating projects. - EMAR revenue increased by a substantial $25.9 million, or 66%, as a result of the launch of full production at the Leith, Scotland facility for the Statoil P12, Total Laggan, and Chevron Congo River Crossing projects as well as increased offshore weld inspection volumes. - In Asia Pacific, revenue experienced a temporary decrease of $12.8 million, or 16%, as a result of the completion in the third quarter of the PNG LNG onshore pipe coating at the Kabil facility combined with lower production on the PNG LNG offshore pipe coating at the Kuantan, Malaysia facility due to reductions in pipe availability.

Operating Income in the fourth quarter of 2010 was $45.6 million compared to $43.7 million in the third quarter of 2010, an increase of $1.9 million, or 4%. The increase was primarily due to the increase in revenue explained above and in particular the impact of revenue on facility utilization in Leith, Scotland. Operating margins declined slightly as the improvement in the absorption of the fixed manufacturing overhead was offset by the change in project mix from Asia Pacific to EMAR.

Fourth Quarter 2010 versus Fourth Quarter 2009

Revenue in the fourth quarter of 2010 increased by $32.0 million, or 14%, from $235.8 million in the fourth quarter of 2009 with strong growth in North America and EMAR offsetting weakness in Latin America and Asia Pacific:

- In North America, revenue increased by $32.1 million, or 38%, as a result of stronger small diameter pipe coating and spoolable composite pipe volumes in Canada, combined with an increase in large diameter pipe project activity that benefited pipe coating and weld inspection volumes in Canada and the USA. - The $11.6 million decrease in revenue in Latin America was due to the completion in 2009 of the Trinidad North East Offshore and Tobago Pipelines project as well as lower project activity in Mexico, partially offset by the additional revenue contributed by the Company's acquisition of 100% of its operations in Brazil in October 2010. - Revenue in EMAR increased by $14.7 million, or 29%, due to the attainment of full production at the Leith, Scotland facility from the Statoil P12, Total Laggan and Chevron Congo River Crossing projects plus increased pipeline weld inspection activity. - In Asia Pacific, revenue decreased by $3.3 million, or 5%, due to low production activity at the Kabil, Indonesia facility which completed the PNG LNG onshore pipe coating project in September and had low utilization in November and December. This weakness offset the growth in volumes from the PNG LNG offshore project at the Kuantan, Malaysia facility and the Epic Energy QSN3 project in Kembla Grange, Australia.

Operating Income in the fourth quarter of 2010 of $45.6 million increased by $1.8 million, or 4%, from the $43.8 million reported in the fourth quarter of 2009. The increase was due to the higher revenue explained above partially offset by a reduction in the operating margin of 1.6 percentage points. The decrease in operating margin was due to a reduction in contribution margins caused by the change in project mix from Asia Pacific to the EMAR and North America regions.

Year ended December 31, 2010 versus 2009

Revenue in the Pipeline and Pipe Services segment for the year ended December 31, 2010 was $920.2 million, a decrease of $152.7 million, or 14%, from the prior year. The decrease was due to the unfavourable impact of foreign exchange fluctuations on the translation of foreign currency operations (See section 2.2 - Foreign Exchange Impact) combined with lower project activity in Latin America, and EMAR, partially offset by increased project volumes in Asia Pacific and a modest improvement in volumes related to North American well completions:

- The increase in revenue in North America of $18.7 million was primarily due to a pick up in drilling and well completions in Canada and the U.S. in the second half of 2010 compared with the prior year, which benefited several of the Company's key product markets including small diameter pipe coating, spoolable composite pipe and drill pipe inspection services. - A decrease in revenue in Latin America of $132.4 million was due to the Trinidad North East Offshore and Tobago Pipelines project that had generated revenue in 2009 of US$81 million and for which production was completed in the fourth quarter of 2009. Also negatively impacting revenue were reductions in pipe coating project activity of 51% in Mexico and 17% in Brazil. The decline in project activity in Brazil continued in the fourth quarter but was offset by the Company's acquisition of 100% of its Brazil operation with the result that the Company's reported revenue from Brazil increased by 27%. - The decrease in EMAR revenue of $76.1 million was mainly due to the unfavourable effect of foreign exchange fluctuations combined with lower pipe coating volumes at the Company's flow assurance insulation coating facility in Orkanger, Norway, a significant decline in joint protection product shipments, field joint and custom coating project activity and offshore pipeline weld inspection. Each of these markets were impacted by the deferral of client commitments for new pipeline infrastructure that had occurred in 2009 in response to the global economic downturn. - In Asia Pacific, revenue increased by $37.1 million as a result of growth in the second half of 2010 associated with the launch of production on the Epic Energy QSN3 project in Kembla Grange, Australia and the PNG LNG pipeline project at Kabil, Indonesia and Kuantan, Malaysia.

Operating Income in the Pipeline and Pipe Services segment for the year ended December 31, 2010 was $133.6 million, a decrease of $79.5 million, or 37%, from $213.1 million in 2009. The operating margin decreased by 5.4 percentage points from 19.9% in 2009 to 14.5% in 2010. Key factors in the decline in the operating margin were:

- The reduction in absorption of fixed overhead costs as a result of the 14% reduction in segment revenue, impacted operating margins negatively by 3.4 percentage points. - A reduction in segment contribution margins due primarily to changes in project activity in North America and Latin America that reduced operating margin by approximately 1 percentage point. - The unfavourable effect of foreign exchange fluctuations reduced the segment operating margin by just under 1 percentage point.

3.2 Petrochemical and Industrial segment

The following table sets forth, by geographic location, the revenue, Operating Income and operating margin for the Petrochemical and Industrial segment for the following periods:

(in Three months ended Years ended thousands of C$) December 31, September December December December 2010 30, 31, 31, 31, 2010 2009 2010 2009 North $ 13,279 $ 16,819 $ 12,775 $ 64,053 $ 69,719 America EMAR 12,040 11,575 12,378 50,002 45,216 Asia 559 527 - 1,728 - Pacific Total $ 25,878 $ 28,921 $ 25,153 $ 115,783 $ 114,935 Revenue Operating $ 3,452 $ 2,832 $ 437 $ 13,159 $ 5,062 Income Operating 13.3% 9.8% 1.7% 11.4% 4.4% Margin

Fourth Quarter 2010 versus Third Quarter 2010

In the Petrochemical and Industrial segment, revenue in the fourth quarter of 2010 totaled $25.9 million compared to $28.9 million in the third quarter of 2010, a decrease of $3.0 million, or 12%. The decrease was attributable to reduced shipments of wire and cable products.

Operating Income in the fourth quarter of 2010 was $3.5 million compared to $2.8 million in the third quarter of 2010, an increase of $0.7 million, or 25%. The increase in operating income, despite the revenue reduction, resulted from a gain in the operating margin of 3.5 percentage points to 13.3%, with an improvement in segment contribution margins combined with a modest reduction in fixed overhead costs.

Fourth Quarter 2010 versus Fourth Quarter 2009

Revenue in the Petrochemical and Industrial segment in the fourth quarter of 2010 at $25.9 million increased by $0.7 million, or 3%, from the fourth quarter of 2009 as the Company experienced a significant improvement in product shipments in EMAR which was partially offset by the year over year weakening of the Euro versus the Canadian dollar and the resulting effect on the translation of the EMAR operating results.

Operating Income in the fourth quarter of 2010 was $3.5 million compared to $0.4 million in the fourth quarter of 2009, an increase of $3.1 million. The increase in operating income was due to improved contribution margins in heat shrink products and a $2.0 million reduction in fixed overhead costs and one time restructuring costs that had been incurred in 2009 at the segment's EMAR operations.

Year ended December 31, 2010 versus 2009

Revenue in the Petrochemical and Industrial segment for the year ended December 31, 2010 was $115.8 million, basically unchanged from 2009, as increased heat shrink sleeve product shipments resulting from a strengthening in industrial and automotive markets in North America and EMAR were largely offset by a weakening of demand for the segment's wire and cable products and the impact on the translation of the EMAR operations, due to the weakening of the Euro versus the Canadian dollar (See section 2.2 - Foreign Exchange Impact).

Operating Income in the Petrochemical and Industrial segment for the year ended December 31, 2010 was $13.2 million, an increase of $8.1 million, or 159%, from $5.1 million in 2009. The operating margin improved by 7.0 percentage points due to the following factors:

- Improved contribution margins in heat shrink products were partially offset by foreign exchange impacts and weaker margins in wire and cable products, with a net benefit to operating margins of 2.9 percentage points. - A reduction in fixed overhead costs and the elimination of one time restructuring costs that had been incurred in 2009 related to restructuring at DSG-Canusa's European operations that improved operating margins by 4.1 percentage points on a year over year basis.

3.3 Financial and Corporate

Financial and corporate costs include corporate expenses not allocated to the operating segments and other non-operating items including foreign exchange gains and losses on foreign currency denominated cash and working capital balances. The corporate division of the Company only earns revenue that is considered incidental to the activities of the Company. As a result, it does not meet the definition of a reportable operating segment as defined under GAAP.

The following table sets forth the Company's unallocated financial and corporate expenses, before foreign exchange gains and losses, for the following periods:

(in thousands of C$) Three months ended Years ended December September December December December 31 30 31 31 31 2010 2010 2009 2010 2009 Financial and corporate expense $ 2,150 $ 6,497 $ 4,409 $ 25,323 $ 21,876

Fourth Quarter 2010 versus Third Quarter 2010

Financial and corporate costs decreased by $4.3 million from the third quarter of 2010 primarily due to lower management incentive compensation and a reduction in professional fees related to corporate development in the fourth quarter of 2010 compared to the third quarter of 2010.

Fourth Quarter 2010 versus Fourth Quarter 2009

Financial and corporate costs decreased by $2.3 million from $4.4 million during the fourth quarter of 2009 to $2.2 million during the fourth quarter of 2010 due to lower expenses related to management incentive compensation plans.

Twelve Months ended December 31, 2010 versus Twelve Months ended December 31, 2009

Financial and corporate expense, before foreign exchange gains and losses, increased by $3.4 million, or 15.8%, in 2010 compared to 2009, mainly due to an increase in professional fees relating to corporate development activities, higher employee benefit costs and expenses related to the introduction of new management incentive compensation plans.

4.0 Forward-Looking Information

This document includes certain statements that reflect management's expectations and objectives for Company's future performance, opportunities and growth, which statements constitute forward-looking information under applicable securities laws. Such statements, other than statements of historical fact, are predictive in nature or depend on future events or conditions. Forward-looking information involves estimates, assumptions, judgments and uncertainties. These statements may be identified by the use of forward-looking terminology such as "may", "will", "should", "anticipate", "expect", "believe", "predict", "estimate", "continue", "intend", "plan" and variations of these words or other similar expressions. Specifically, this document includes forward-looking information in respect of, among other things, the impact of global economic activity on the demand for the Company's products as well as the prices of commodities used by the Company, the impact of changing energy demand, supply and prices, the impact of changes in competitive conditions in the markets in which the Company participates, the impact of changing laws for environmental compliance on the Company's capital and operating costs, and the adequacy of the Company's existing accruals in respect thereof, the Company's relationships with its employees, the continued establishment of international operations, the effect of continued development in emerging economies, as well as the Company's plans as they relate to research and development activities and the maintenance of its current dividend policies, the outlook for revenue and operating income and the expected development in the Company's order backlog.

Forward-looking information involves known and unknown risks and uncertainties that could cause actual results to differ materially from those predicted by the forward-looking information. We caution readers not to place undue reliance on forward looking information as a number of factors could cause actual events, results and prospects to differ materially from those expressed in or implied by the forward looking information. Significant risks facing the Company include, but are not limited to: changes in global economic activity and changes in energy supply and demand which impact on the level of drilling activity and pipeline construction; exposure to product and other liability claims; compliance with environmental, trade and other laws; political, economic and other risks arising from the Company's international operations; fluctuations in foreign exchange rates, as well as other risks and uncertainties, as more fully described herein under the heading "Risks and Uncertainties".

These statements of forward-looking information are based on assumptions, estimates and analysis made by management in light of its experience and perception of trends, current conditions and expected developments as well as other factors believed to be reasonable and relevant in the circumstances. These assumptions include assumptions in respect of the potential for improvement in demand for the Company's products and services as a result of continued global economic recovery, the potential for increased investment in global energy infrastructure as a result of stabilization of capital markets, the Company's ability to execute projects under contract, the continued supply of and stable pricing for commodities used by the Company and the availability of personnel resources sufficient for the Company to operate its businesses. The Company believes that the expectations reflected in the forward-looking information are based on reasonable assumptions in light of currently available information. However, should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking information included in this document and the Company can give no assurance that such expectations will be achieved.

When considering the forward looking information in making decisions with respect to the Company, readers should carefully consider the foregoing factors and other uncertainties and potential events. ShawCor Ltd. does not assume the obligation to revise or update forward looking information after the date of this document, or to revise it to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

Other information relating to the Company, including its Annual Information Form, is available on SEDAR at www.sedar.com.

ShawCor Ltd. will be hosting a Shareholder and Analyst conference call and Webcast on Friday, March 4, 2011 at 10:00 am EST to discuss the company's fourth quarter 2010 financial results. Please visit our website at http://www.shawcor.com for future details.

March 3, 2011

SHAWCOR LTD.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands of Canadian dollars)

December 31, December 31, As at 2010 2009 Assets Current assets Cash and cash equivalents $ 155,998 $ 249,988 Accounts receivable 243,955 191,821 Taxes receivable 13,823 14,055 Inventories 126,132 109,379 Prepaid expenses 14,171 14,392 Derivative financial instruments 1,130 1,782 Current future income taxes 4,590 4,668 559,799 586,085 Property, plant and equipment, net 283,286 270,219 Intangible assets 91,353 62,784 Future income taxes 29,035 36,249 Derivative financial instruments - 39 Long-term investments 31,995 24 Other assets 15,622 16,128 Goodwill 220,092 214,449 TOTAL ASSETS $ 1,231,182 $ 1,185,977 Liabilities Current liabilities Accounts payable and accrued liabilities $ 131,777 $ 127,932 Taxes payable 50,860 42,971 Loan payable 5,126 - Deferred revenue 54,751 75,100 Derivative financial instruments 527 510 Current portion of long-term debt 25,005 26,235 Current obligations under capital lease 345 371 268,391 273,119 Long-term debt - 26,052 Obligations under capital lease 339 492 Future income taxes 78,516 76,552 Derivative financial instruments 807 - Other non-current liabilities 40,378 19,340 TOTAL LIABILITIES 388,431 395,555 Shareholders' Equity Capital stock 206,775 204,151 Contributed surplus 18,144 17,277 Retained earnings 780,722 695,800 Accumulated other comprehensive loss (162,890) (126,806) TOTAL SHAREHOLDERS' EQUITY 842,751 790,422 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,231,182 $ 1,185,977

SHAWCOR LTD.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands of Canadian dollars, except per share amounts)

Three Months Ended Year Ended December 31, December 31, 2010 2009 2010 2009 Revenue $ 292,086 $ 260,911 $ 1,034,163 $ 1,183,978 Cost of goods sold 176,293 154,183 623,641 695,521 Gross profit 115,793 106,728 410,522 488,457 Selling, general and 50,371 48,638 221,440 219,557 administrative expenses Research and 2,788 3,103 11,050 10,967 development expenses Foreign exchange (1,749) 1,284 (5,745) 3,790 (gains) losses Amortization of 12,805 14,044 50,376 57,244 property, plant and equipment Amortization of 1,958 1,095 5,246 4,380 intangible assets Impairment of 958 - 958 - intangible assets Impairment of 208 - 208 - goodwill Income from 48,454 38,564 126,989 192,519 operations Gain on revaluation 17,979 - 17,979 - of investment Investment loss on (1,939) - (1,939) - long-term investment Interest income on 506 409 1,455 916 short-term deposits Interest expense, (525) (437) (1,631) (1,780) other Interest expense on (432) (734) (2,327) (3,808) long-term debt Income before income 64,043 37,802 140,526 187,847 taxes Income taxes 13,275 6,276 35,136 56,397 Net income for the $ 50,768 $ 31,526 $ 105,390 $ 131,450 year Earnings per share Basic $ 0.72 $ 0.44 $ 1.49 $ 1.86 Diluted 0.71 0.43 1.48 1.85

SHAWCOR LTD.

CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (UNAUDITED)

(in thousands of Canadian dollars)

Three Months Ended Year ended December 31, December 31, 2010 2009 2010 2009 Balance, beginning $ 735,161 $ 669,126 $ 695,800 $ 601,407 of period Net income for the 50,768 31,526 105,390 131,450 period 785,929 700,652 801,190 732,857 Dividends declared (5,207) (4,852) (20,468) (37,057) Balance, end of $ 780,722 $ 695,800 $ 780,722 $ 695,800 period

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in thousands of Canadian dollars)

Three Months Ended Year ended December 31, December 31, 2010 2009 2010 2009 Net income for the period $ 50,768 $ 31,526 $ 105,390 $ 131,450 Other comprehensive loss, net of income taxes: Unrealized loss on translating financial statements of self sustaining foreign operations (24,833) (7,775) (37,289) (49,149) Gain on translating financial statements of self-sustaining foreign operations transferred to net income in the period - - - 678 Gain on hedges of 812 1,480 1,423 8,428 unrealized foreign currency translation Income tax expense 221 (34) (218) (1,223) Unrealized foreign currency translation loss, net of hedging activities (23,800) (6,329) (36,084) (41,266) Unrealized loss on - - - (336) available for sale financial asset Unrealized gain on available-for-sale financial asset transferred to net income - - - 336 Other comprehensive loss (23,800) (6,329) (36,084) (41,266) for the period Comprehensive income for $ 26,968 $ 25,197 $ 69,306 $ 90,184 the period

SHAWCOR LTD.

CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)

(in thousands of Canadian dollars)

Three Months Ended Year ended December 31, December 31, 2010 2009 2010 2009 Operating activities Net income for the year $ 50,768 $ 31,526 $ 105,390 $131,450 Add (deduct) items not - - affecting cash: Amortization of 12,805 14,044 50,376 57,244 property, plant and equipment Amortization of 1,958 1,095 5,246 4,380 intangible assets Amortization of 426 111 - 444 transaction costs Amortization of (34) 1,173 4 1,173 long-term prepaid expenses Asset retirement 1,605 (6,885) 269 (4,852) obligations expense Stock-based (269) 771 1,478 3,165 compensation Future income 2,326 (3,482) (5,532) (3,809) taxes Loss (gain) on (341) 4 (1,226) 1,365 disposal of property, plant and equipment Loss on derivative 708 - 708 - financial instruments Gain on short-term - - investments Accounting gain on (17,979) - (17,979) - acquisition Investment loss on 1,939 - 1,939 - long-term significant influence investment Impairment of - - - 336 available-for-sale financial asset Impairment of 958 - 958 - intangible assets Impairment of 208 - 208 - goodwill Settlement of asset (2,493) 937 (3,218) (1,307) retirement obligations Change in employee (1,993) (3,544) (275) (457) future benefits Change in non-cash (17,157) 105,772 (85,102) 110,201 working capital and foreign exchange Cash provided by 33,435 141,522 53,244 299,333 operating activities Investing activities Purchases of (15,327) (8,432) (48,723) (34,358) property, plant and equipment Proceeds on - 562 3,420 606 disposal of property, plant and equipment Purchase of (302) - (302) - intangible assets Acquisition of (3,578) - (34,917) - long-term investment Acquisition of (19,728) (3,943) (19,728) - subsidiaries Increase (6) 4,068 - (3,943) (decrease) in long-term notes receivable Cash used in investing (38,941) (7,745) (100,250) (37,695) activities Financing activities Decrease in bank - - - (15,418) indebtedness Proceeds from loan (75) (107) 5,126 - Repayments on - - (179) (107) capital leases Repayment of 947 378 (26,043) (28,705) long-term debt Issuance of shares - - 2,013 1,679 Dividends paid to (5,207) (4,852) (20,468) (37,057) shareholders Cash used in financing (4,335) (4,581) (39,551) (79,608) activities Foreign exchange (loss) (5,861) (2,579) (7,433) (10,974) on foreign cash and cash equivalents Net change in cash and (15,702) 126,617 (93,990) 171,056 cash equivalents for the year Cash and cash 171,700 123,371 249,988 78,932 equivalents, beginning of year Cash and cash $ 155,998 $ 249,988 $ 155,998 $249,988 equivalents, end of year

For further information:

Gary Love Vice President, Finance and CFO Telephone: +1-416-744-5818 e-mail: glove@shawcor.com website: http://www.shawcor.com