The global scrap metals group Sims Metal Management has blamed recent intake volumes and its anticipated shipping programme for deep sea ferrous products for a downward revision in its guidance for the first half of its financial year ending 31 December. According to market update issued last night in Sydney, the concern now expects its underlying earnings before interest, tax, depreciation and amortisation (Ebitda) to come in some 20 per cent lower than the AUD110m-120m (ca. €87m-95m) it predicted just a month ago at its annual general meeting.
"Whilst recent positive economic signals in the U.S., including declining unemployment, positive consumer confidence data and increasing industrial production, is encouraging, the direct benefit to intake volumes and metal recycling margins typically follows at a lag which will not benefit Sims Metal Management through the 31 December 2012 period," the Sims' update explained.
The concern's first half results for the 2012/13 financial year are due out on 15 February 2013.