US$ 420 million loss for Sims MM

Australia – Australia-based scrap processor and exporter Sims Metal Management (Sims) incurred a statutory net loss after taxes of A$ 466 million (US$ 420 million) in the fiscal year ended June 30. Revenues plunged to A$ 7.1 billion – down 20% compared to the previous year.

Lower scrap prices accounted for part of the decline but scrap shipments also retreated, dropping by 12% from the previous year, according to a company statement.

Sales prices for Sims’ US East Coast export yards rose by US$ 30 per tonne in July and by a further US$ 10 in the first half of August. Its US West Coast export markets lagged in July but have shown some gains in August. Non-ferrous prices rose in July but these markets remain both unpredictable and volatile, Sims said. Trading liquidity remains firm in the company’s primary deep-sea ferrous and international non-ferrous markets, it added.

Sims is still interviewing candidates to replace Daniel Dienst, its executive director and ceo who left the company two months ago. According to a company statement, it has narrowed the field to ‘external candidates’ – an indication that no-one from its own ranks will move up to the top position. According to Sims’ chairman Geoffrey Norman Brunsdon, the company expects to name Dienst’s successor by the end of September.

For more information, visit: www.simsmm.com