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- Sims Metal Management is blaming global trade tensions for a 25 per cent drop in net profits
- EBIT came in at $255 million, down from $279 million last year
- Sales revenue, however, increased by of $192 million
Sims Metal Management was up as much as 8.19 per cent today despite announcing a 25 per cent drop in net profits, blaming global trade tensions for weak year.
It reported statutory earnings before interest and taxes (EBIT) of $255 million, which is down from $279 million from last year.
The company’s saving grace, however, is a $192 million increase in sales revenue this year in the face of declining price environment.
Sims Metal is a leading collector, processor, and supplier of recycled metal. It has operations in United States, Australasia, and United Kingdom.
The company buys metal from metal dealers, peddlers, auto wreckers, demolition firms, and others who generate unwanted or out of date metal. Sims then processes and ships the metal to key export markets.
CEO Alistair Field said this year was challenging for all recycling companies globally.
“Despite these market challenges, we delivered underlying EBIT of $230 million and underlying NPAT of approximately $162 million,” he said.
The company recycles 10 million tonnes of metal and 500,000 tonnes of municipal material (plastic, metal and paper) each year.
“Our investment in sophisticated material processing facilities coincides with customers requiring higher specification products, and we are well-placed to capture an increasing share of this demand,” Alistair added.
Sims declared a final dividend for financial year 2019 of 19¢ per share and fully franked. Final payouts for the year was 42¢, which is down from last year’s 53¢.
