Sims Metal Management Provides First Half Fiscal 2013 Market Update
12/19/2012 - Metal recylcer Sims Metal Management has adjusted its earnings guidance due to weak intake volumes across all regions coupled with tepid demand by deep sea ferrous buyers.
At its Annual General Meeting on 15 November 2012, Sims Metal Management Limited provided guidance for first half fiscal 2013 underlying earnings before interest, tax, depreciation, and amortization (EBITDA) in the range of $110 to $120 million. Due to continued challenging market conditions, SimsMM now expects first half fiscal 2013 underlying EBITDA to be approximately 20% lower than the previous guidance range.
This updated earnings guidance relates primarily to SimsMM’s assessment of recent intake volumes and its anticipated shipping program, particularly for deep sea ferrous products, forecasted for December 2012. As indicated at the Annual General Meeting, SimsMM anticipated relatively weak intake volumes across all regions coupled with, until recently, tepid demand by deep sea ferrous buyers. Whilst recent positive economic signals in the U.S., including declining unemployment, positive consumer confidence data and increasing industrial production, is encouraging, the direct benefit to intake volumes and metal recycling margins typically follows at a lag which will not benefit SimsMM through the 31 December 2012 period. Consistent with the Annual General Meeting update, this updated underlying guidance is subject to variations that may relate to the timing of shipments and the impact of commodity hedging, and excludes items that may be reported related to asset sales, redundancies and other significant items.
SimsMM currently expects to release its first half Fiscal 2013 results to the market on 15 February 2013.
Sims Metal Management is the world’s largest listed metal recycler with approximately 270 facilities and 6,600 employees globally. Sims’ core businesses are metal recycling and electronics recycling. Sims Metal Management generated approximately 88 percent of its revenue from operations in North America, the United Kingdom, Continental Europe, New Zealand and Asia in Fiscal 2012.
