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UPDATE 1-Canam Manac posts loss, cancels dividend

(Adds details, background)

CALGARY, Alberta, Aug 6 (Reuters) - Canam Manac Group Inc. said on Wednesday it sank to a second-quarter loss from continuing operations as the steel products maker was squeezed by a slowdown in industrial construction, mostly in the United States.

Tough times in the industry prompted Quebec-based Canam Manac to cancel paying a dividend for the second quarter in a row. It also has some operations on the block.

The company, which makes steel construction components, semi-trailers and forestry equipment, lost C$4.4 million ($3.1 million), or 14 Canadian cents a share, from continuing operations, down from a year-earlier profit of C$659,000, or 2 Canadian cents a share.

Last year, the company folded its money-losing French operations. Including those results, Canam Manac lost a net C$10.6 million, 31 Canadian cents a share, in the second quarter of 2002.

Revenues fell 17 percent to C$191 million from C$230 million, as weak construction activity outside Canada cut into sales, it said.

Canam Manac, which has been shedding jobs and operations to offset losses, said in July it was putting its U.S. and Mexican steel joist and deck manufacturing operations up for sale.

In June, it announced 50 indefinite layoffs at a forestry equipment manufacturing plant in Quebec, blaming the softwood trade dispute between Canada and the United States.

Shares in Canam Manac have been on a steady decline for two years since they hit levels of C$9.65 in July 2001. The stock closed down 15 Canadian cents at C$3.40 in Toronto. It released the results after the market closed.

($1=$1.40 Canadian)