Standing Strong

November 2009

A. M. Castle & Co.A. M. Castle & Co.

2.

Forward Looking Statement & Non-GAAP Measures

This presentation may contain forward-looking statements relating to future financial results. Actual results may differ materially as a result of factors over which the Company has no control. These risk factors and additional information are included in the Company's reports on file with the Securities Exchange Commission.

The financial statements included in this release contain a non-GAAP disclosure, EBITDA, which consists of income before provision for income taxes plus depreciation and amortization, debt extinguishment expense, and interest expense (including discount on accounts receivable sold and loss on extinguishment of debt), less interest income. EBITDA is presented as a supplemental disclosure because this measure is widely used by the investment community for evaluation purposes and provides the reader with additional information in analyzing the Company's operating results. EBITDA should not be considered as an alternative to net income or any other item calculated in accordance with U.S. GAAP, or as an indicator of operating performance. Our definition of EBITDA used here may differ from that used by other companies.

1

3.

Overview

• Foremost global distributor of specialty metals• Provides over 5,000 products, processing services and supply chain

solutions to 25,000 customers• 118 year history in the metal service center industry• One of the largest metal service center companies in the U.S.; $1.5

billion 2008 revenue• Strong ties to growing aerospace, defense, oil & gas and other

heavy equipment markets• Expanding global presence of specialty metals

– Shanghai, China facility – May 2008

– Acquisition of Metals UK Group – January 2008

– Singapore sales office opened March 2009

2

A. M. Castle is a leader in global distribution of specialty metals and value-added services to diverse high-growth end markets

4.

End Markets & Product Portfolio

Products ProvidedMarkets Served

3

Global Demand Driving Key End Markets

Power Generation

5%

Machine Tools & Gen'l Eqpt

17%

Heavy Equipment

16%

Oil & Gas14%

Aerospace25%

Other16%

Plastic8%

Aluminum21%

Alloy24%

Stnls & Ni25%

Carbon18%

Plastics8%

Other2%

Titanium2%

5.

Management Focused on Key Segments

• Global Presence includes facilities in North America, Europe, China and Southeast Asia

• Key platforms include Airbus A380, and Military JSF

• Emphasis on value-added services• Strong supply position• Key markets include energy, mining

and infrastructure

Aerospace Heavy Equipment

• Product offerings and processing capabilities are focused on global oil & gas customer needs

• Castle will leverage processing capabilities and broad product offering to solve more complex customer supply chain needs

Oil & Gas

• Bar and tubing emphasis with extensive processing and supply chain solutions

• Extensive geographic footprint and service capabilities

General Industrial

6.

Role of the Metal Service Center “MSC”

MSCs are a Vital Link in the Metal Supply Chain

• Ability to purchase metal at mill minimumorder quantities

• Ability to leverage diverse mill relationships to achieve procurement advantages(price and product availability)

• Ability to deliver smaller quantities of metal products to a large and diverse customer base of OEMs andsub-contractors

• Provide value-added services –semi-finished products

• Inventory management

– Manage the gap between supplier lead-times and customer demand

– Match metal performance specifications to customer needs and supplier capabilities

– Ensure supply of constrained specialty metals5

MSC Sub

Sub

Sub

Mills OEMs

7.

• Manage OEM sub-contractor network• Providing semi-finished

products to customers– Maximizing in-house

processing capabilitiesand expertise

– Selecting and managing third-party processor networks

• Providing customer and end market focused solutions– Manage global supply chain network

Role of the Metal Service Center

cont’d

MSC

Sub

Sub

SubMillsGlobalOEMs

Sub

Sub

Sub

Global

Industry Model ― Next Evolution

8.

• Matching capacity to demand has stabilized pricing

• Impact of business cycles could be reduced

Benefit• Castle has long-standing relationships with

key suppliers and demonstrated product availability

Industry Trends

Supplier Consolidations Customer Consolidations

Service Center Consolidation End Market Strength

• Firms seek to create operating and purchasing leverage

• Ability to service multi-plant customers

Benefit• Castle differentiates itself by its service

offerings, specialty product focus and extensive geographic coverage

• Growing aerospace industry driving demand for specialty metals

• Global investment in oil & gas and energy• Global investment in infrastructure and

resource based industries• International demand for manufactured

goodsBenefit• Opportunities for strong organic growth

globally in targeted end markets

• OEMs are expanding their global operations• Supply chain complexity is increasing• Greater need for outsourcing non-core

processes to partners

Benefit• Castle is positioned as an integrated value-

added component of it customers’ supply chain

9.

2008 Highlights AM Castle

Global Expansion

Value-Added Processing Capability

Supply Chain Services

End-Market Focus

• Acquired Metals UK Group

• Opened facility in Shanghai, China

• Made significant investments to upgrade equipment and services

• Completed ERP system replacement at all domestic aerospace locations

• Strengthened leadership team

Key Strategy 2008 Accomplishments

Financial Overview

11.

Financial Summary

• Sales of $631 million for first nine- months 2009 with net loss at $11.4 million

• Cash flow from operations $31.1 million YTD Sept 2009 compared to $15.6 million cash use in the prior period

• Consolidated operating expenses YTD Sept 2009 down 26.7% from prior year period met $65 million cost reduction goal for 2009 in September. Now expect 2009 operating costs $75 million lower than prior year

• Net Debt-to-capital ratio 22.5% at September 30, 2009

• Record sales of $1.5 billion in 2008

• Debt-to-capital ratio of 25.2% at December 31, 2008

• Volume/Tons sold increased 5.8% in 2008

• Pension plan frozen, surplus invested in fixed income by mid-2008. No future contributions expected

• Recorded a $58.9 million non-cash goodwill impairment charge

9 Mos 2009 2008

12.

$959

$1,178

$1,420$1,501

$1,180

$631

$0

$400

$800

$1,200

$1,600

2005 2006 2007 2008 9 Mos'08

9 Mos'09

Focused on Profitable Growth

Revenue

CAGR =

21.7%

$ in millions

CAGR 16.1%

13.

Focused on Profitable Growth

EBITDA $ in millions

CAGR = 17.1%

2008 Excludes non-cash charge of $58.9 million for goodwill impairment

$85

$110$116

$95

$82

$2$0

$20

$40

$60

$80

$100

$120

$140

2005 2006 2007 2008 9 Mos'08

9 Mos'09

14.

Days

Solid Working Capital Measurements

Inventory Turns - DSI Receivables - DSO

* Annual ratios are full year averages

Days

132 130140 147

174

204 200

0

25

50

75

100

125

150

175

200

225

2007 2008 3Q08 4Q08 1Q09 2Q09 3Q09

45.147.6 48.0

51.854.6

56.953.8

0

10

20

30

40

50

60

2007 2008 3Q08 3Q08 1Q09 2Q09 3Q09

• Annual ratios are full year averages• Quarterly ratios are trailing three months

15.

Strong Financial Position

Debt to Total Capital Ratios

*

2008 increase primarily reflects the January 2008 acquisition of Metals UK

18.3%

25.2% 25.6% 24.9%22.5%

0%

10%

20%

30%

2007 2008 1Q09 2Q09 3Q09

16.

ERP Cost Savings:• 2008 – ERP enabled 2008 productivity

improvements

• 2009 – Expect savings in 2009 and beyond

• Significantly improves working capital

Workforce Reduction:• Now expect $75 million reduction in 2009

operating expense compared to 2008

• 30% effective workforce reduction at mid-year 2009

• Adjust workforce capacity to bring cost structure in line with current and anticipated business levels

Operating Improvements 2009 Objectives

$65M Reduction in Total Operating Expense Run Rate in 2009

Reduce Capital Spending by $16.3M in 2009

Debt Reduction:• FY’09 Goal – Reduce debt by another

$50M

• Focus on preserving balance sheet and aggressively reducing debt in 2009

Inventory Reduction:• $50 million inventory reduction through

Sept 2009

• Reduce inventory by $80M in 2009

• Focus on aligning inventories with current demand environment

• Expect improvement in cash flow

Working Capital Improvements

17.

Investment Highlights

• Specialty Product Focus with Value-Added Processing Emphasis

• Strong Alignment with Growing End Markets, Positioned for Profitable Growth

• Increased Global Presence and Capabilities

• Extensive Supplier Relationships

• Supply Chain Solutions

• Experienced Industry Management Team

• Proven Track Record of Performance

• Strong Financial Position

Appendix

19.

Management Team

Michael H. Goldberg • President and Chief Executive Officer

• Prior experience includes Executive Vice President of Integris Metals and Executive Vice President of the North American Metals Distribution Group, a division of Rio Algom Ltd

Scott F. Stephens• VP, CFO and Treasurer

• Prior experience includes Chief Financial Officer of Lawson Products, Inc.

Stephen V. Hooks• EVP and President Castle Metals

• Held various positions at the Company including Executive Vice President of A. M. Castle and Chief Operating Officer of Castle Metals

20.

Management Team

Curtis Samford• President Castle Metals Oil & Gas• Curtis joined Castle in March 2008. Previously Mr. Samford was

Vice President of Alcoa’s Oil and Gas Division

Blain Tiffany• President Castle Metals Aerospace• Formerly President, Castle Metals Plate

Thomas Garrett• President Total Plastics Inc.• Held various positions at TPI since 1988 including Controller and

Vice President

Ian Griffiths• Managing Director Metals UK Group

21.

Suppliers

Stable supply base values A. M. Castle as a key customer and provides access to specialty metals

Aluminum Kaiser Aluminum and Alcoa

Alloy Timken and Republic

Nickel & Stainless Allegheny and Special Metals

Carbon Mittal-Arcelor, Ipsco & Gerdau

Titanium RMI

Plastics Cyro Industries/Degussa, Sheffield Plastics/Division of Bayer,and Quadrant Engineered Plastics

Product CategoryProduct Category SupplierSupplier

22.

Airbus A380

Gulfstream V

JSF

Stryker

Stryker Gulfstream V JSF

End Market Key Platforms Supported

• Large Commercial Aircraft

• Airbus A318, A319, A320, A321, A330, A380• Boeing 737, 747, 777, 787

• Regional Aircraft • Bombardier, Embraer

• Military Aerospace • C-17, C-27, C130, F15, F16, F18, F22• JSF • (F-35), T50

• Military Ground Vehicles

• Bradley, Humvee, Stryker

• Business / General Aviation

• Cessna, Gulfstream, Piper, Raytheon, Mooney

• Freighter Conversions

• Aeronavali, Israel Aircraft Industries (747 and 767), Singapore Technologies, Alcoa-SIE

• MRO • British Airways, HAECO, TAECO, United Airlines

Blue Chip Platform Support

23.

Aerospace Structural Material Usage

Heat-Treated Aluminum is the Dominant Structural Material in Aircraft Fabrication

Composite Usage Will Increase in Certain Applications But Will Not Displace Transtar’s Business

A.M. Castle Products Minimal Composites

Substitutions

A.M. Castle Products Minimal Composites

Substitutions

A.M. Castle Products Engine Components

A.M. Castle Products Engine Components