Sims Metal Management sees earnings slide

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20.02.2019 − 

The past six months have been "challenging for all recyclers globally", said Alistair Field, CEO and managing director of Sims Metal Management, today at the presentation of the company's first-half earnings report. The global metals recycling group increased its sales volumes and revenue, but reported that earnings had declined.

Sims' sales revenues reached AUD3.33bn (approximately €2.10bn) in the first half of its current fiscal year, which began July 1, 2018. This represented growth of 12 per cent over the prior-year period. However, lower margins resulted in a drop in profits. Earnings before interest and taxes (Ebit) were 11 per cent lower than a year earlier at AUD109m (€69m), while net income decreased by 16 per cent to AUD76.5m (€48m).

The current half has started off with "some early signs of improvement", according to Sims Metal Management. These include the increase in scrap demand from Turkey, which has also stabilised prices, higher iron ore prices and support for the price of non-ferrous scrap grade Zorba. However, there remains considerable uncertainty due to potential for the escalation of trade disputes and changes in the policy framework and the Chinese import quota system for Category 6 scrap metals, the group said.

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