Sims Metal Management back in the red


US-Australian steel scrap recycling group Sims Metal Management has closed its fiscal year with a loss in the hundreds of millions following its return to the black just a year before.

The company announced a net loss after taxes of AUD216.5m (about €146m) for the financial year ended 30 June. Due to retreating scrap prices and volumes, Sims' turnover tumbled 26 per cent to AUD4.65bn (€3.15bn).

Underlying results excluding discontinued operations were also significantly lower than a year earlier. Sims reported an underlying post-tax profit of AUD38m from continuing operations, compared with earnings of AUD101.5m in fiscal year 2014/15.

Sims chief financial officer Fred Knechtel commented: "Earnings materially improved during 2H FY16 across our business, despite no improvement in total volumes." The group's British metals recycling operations achieved their "strongest half since 2008". The group's global e-scrap recycling business also showed improvement, driven by stronger precious metal prices and better results in continental Europe, Mr Knechtel added.

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