Copying and distributing are prohibited without permission of the publisher

US, Europe flows hurt Sims’ scrap intake

February 10, 2012 - 00:08 GMT Location: New York

KEYWORDS: scrap , Sims Metal Management , SA Recycling

Sims Metal Management Ltd. recorded a 25-percent quarter-on-quarter drop in scrap intake and shipments for the three months ended Dec. 31 due to weak scrap flows in North America and Europe, it said.

The company expects underlying earnings before interest, taxes, depreciation and amortization (Ebitda) to hover around Australian $141 million ($152 million), up 2.2 percent from A$138 million in the same period a year earlier.

But Sims’ results, scheduled to be released Feb. 17, could show a net loss of about A$489 million ($528 million) due to a non-cash impairment charge for the six-month period to write off goodwill of A$614 million ($663 million).

"The impairment arose predominately within the North America segment and related to acquisitions and joint ventures made and accounted for prior to the end of fiscal 2008," the company said.

"The...

All material subject to strictly enforced copyright laws. © Euromoney Institutional Investor PLC.

Please log in using your online subscriber details.
Your username will be your registered email address with Metal Bulletin.

If you aren't a subscriber yet, feel free to take a seven day free trial, or subscribe using the instructions below.

A standard subscription include one year's worth of news and prices. You can also upgrade to the full archive and benefit from more than 13 years of intelligence. Start your subscription today.

Free trial

Taking a free trial will give you open access to Metal Bulletin online news, prices, archived content and email alert service for the next seven days. Start your free trial today.

Free trial

Already have an account?

Ferrous

May 24, 2012 14:50 DAILY SCRAP REPORT: Small Black Sea buyers sell off cargoes
May 24, 2012 00:29 Harsco renews three multiyear contracts in US
May 23, 2012 14:45 DAILY SCRAP REPORT: Index unchanged on lack of new offers
May 23, 2012 10:24 China halts scrap imports on weak domestic market
May 23, 2012 08:53 SE Asia scrap prices down $15-20 as buyers await market cues

Ferrous Scrap

May 24, 2012 14:50 DAILY SCRAP REPORT: Small Black Sea buyers sell off cargoes
May 24, 2012 00:29 Harsco renews three multiyear contracts in US
May 23, 2012 14:45 DAILY SCRAP REPORT: Index unchanged on lack of new offers
May 23, 2012 10:24 China halts scrap imports on weak domestic market
May 23, 2012 00:35 US recyclers facing bankruptcy filings

Comment & analysis

EXPERT VIEW FROM ERNST & YOUNG: Horror week favours the brave

Seven days is a long time in the investment world, but last week must have felt longer than most.
COMMENT: When super-cycle poster child BHP Billiton trims its plans...

BHP Billiton is one of the poster children for the commodities super-cycle: a mining company whose immense upstream assets in copper and iron ore have fed the industrialisation of China since the early years of the 21st century and enabled it to return $52 billion to shareholders between 2001 and 2011.
LORD COPPER: There is nothing to fear after JP Morgan loss ...

So, here we go again. Another bank, another huge trade gone bad. This one doesn’t even appear to have been a case of rogue trading; a whole desk seems to have been operating with the full knowledge of the management and/or risk committee.