Sims posts net loss of AUD256m for 2019/20

Alistair Field, CEO and managing director of Sims Metal Management
18.08.2020 − 

US-Australian recycler Sims saw both sales revenue and earnings contract significantly in the financial year ended 30 June. "The rapid collapse in ferrous scrap prices in September 2019, combined with historically low zorba prices, severely compressed margins in the first half," the company reported. There had been "tentative signs of a recovery in prices and volumes", but then the "the historic world-wide response to slow the spread of Covid-19 materially reduced intake volumes and sales prices in the second half, especially in North America, the UK and New Zealand", the metals recycler explained.

As a result, sales revenue for the financial year in review stood at AUD4.91bn (€2.98bn), down 26 per cent compared to the previous year's AUD6.64bn. Sims Metal Management closed 2019/20 with a post-tax net loss of AUD265m (€161m; AUD1 = €0.61). One year before, the company had recorded a profit of AUD153m.

At the release of the group's financial report on Tuesday, Sims CEO Alistair Field explained that the concern had responded with an "extensive restructuring and cost reduction programme" which would achieve its full run rate of AUD70m (ca. €45.5m) in the current financial year.

Full coverage of Sims' financial performance in 2019/20 and of its restructuring programme appears in the print and e-paper editions of EUWID Recycling & Waste Management 17/2020.

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