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Profits fall for Sims Metal Management


"This year has been challenging for all recycling companies globally," said CEO Alistair Field.
26.08.2019 − 

International recycler Sims Metal Management reported that earnings in its most recent financial year had suffered due to the trade conflict between the USA and China. "This year has been challenging for all recycling companies globally," said CEO Alistair Field in the concern's report for the financial year ended June 30.

Declining metal prices reduced the group's net income by a quarter to around AUD153m, or about €93m. The company noted that the 3 per cent revenue increase, bringing turnover to AUD6.64bn, had been due exclusively to exchange rate effects. At 9.8 million tonnes, the amount of ferrous and non-ferrous scrap traded was practically equal to the previous year's level.

Trade dispute escalation and weak car sales

"The long-term growth outlook remains attractive", reported Sims Metal Management. The concern cautioned, however, that “there is a backdrop of increasing escalation in trade wars, which run the risk of a further general decline in global activity”. Ferrous scrap and aluminium prices are under pressure due to weak car sales, according to the company.

The group does not expect its scrap metal sales to China to be materially adversely affected by the import licensing system which went into effect on 1 July for grades falling within the Chinese "category 6" classification.

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