UPDATE 1-A. M. Castle Q1 profit beats expectations, shares up

(Recasts; adds details, share movement)

April 29 (Reuters) - Specialty metals and plastics distribution company A. M. Castle & Co (CAS.N) posted a quarterly profit that topped Wall Street's view, helped by demand in the oil and gas markets, sending its shares up as much as 16 percent.

The Franklin Park, Illinois-based company earned $13.8 million, or 62 cents a share, in the first quarter, down from $15.6 million, or 81 cents a share, a year ago.

Analysts' average forecast was earnings of 54 cents a share, before special items, according to Reuters Estimates.

Net sales rose almost 5 percent to $393.5 million, above analysts' expectation of $382.1 million.

Metal segment sales were up 4.5 percent to $362.3 million.

Margin rates in the company's aerospace business were comparable to the fourth quarter, reflecting continuing oversupply of aluminum plate throughout the industry supply chain, Chief Executive Michael Goldberg said in a statement.

"We do not expect a better overall market balance of supply to demand for this product until the latter half of 2008," Goldberg said.

Shares of the company were trading up about 12 percent at $30.52 in morning trade on the New York Stock Exchange. They touched an intraday high of $31.81 earlier in the session. (Reporting by Ratul Ray Chaudhuri in Bangalore; Editing by Varsha Tickoo)