Fall in Scrap Market and Covid-19 Take a Hit on Sims Results

SEATTLE (Scrap Monster): Australia-headquartered Sims Ltd. which also runs recycling operations in North America and the UK reported that its financial results were negatively impacted during fiscal year 2020. The company noted that tough market conditions prevailed throughout the year.

Sims Ltd. revenues witnessed a year-on-year decline by over 26% during the fiscal year ended 30^th June, 2020. The revenues were down from A$6,640 million to A$4,908.5 million. The sales volumes too were down significantly from 9.803 million tonnes to 8.154 million tonnes. Also, the company reported underlying loss of nearly A$57.9 million. Meantime, the consolidated metals divisions operations returned to positive EBIT during the month of July this year.

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Commenting on the performance, Alistair Field, Group CEO and Managing Director, Sims stated that the management had responded to tough market conditions with a comprehensive restructuring and cost reduction initiative. The first half margins were severely compressed by rapid collapse in ferrous scrap prices and historically low zorba prices. The severe Covid-19 lockdowns across geographies materially impacted scrap intake volumes and sales prices in the second half of the fiscal, he added.