Sims Metal Management Reported Net Loss in H1 FY20

SEATTLE (Scrap Monster): Sims Metal Management Ltd. published financial results for the initial half of fiscal year 2020. The company reported net loss during the six-month period ending 31^st December, 2019. The challenging market conditions in ferrous and zorba markets impacted the performance.

According to company press release, it recorded an underlying earnings before interest and taxes (EBIT) loss of $15.5 million in the first half of the fiscal year 2020, as against the EBIT gain of $109.6 million in the corresponding half-yearly period last fiscal. The sales revenue nosedived by more than 18% year-on-year, mainly on account of rock bottom scrap metal prices.

The sales volume totalled 4.5 million metric tons in H1 FY20. The non-ferrous sales volume remained more or less stable. However, the ferrous volumes recorded notable decline by 11%. The company’s margins got squeezed by rapid fall in ferrous scrap prices and historically low zorba prices.

Alistair Field, the company’s Group CEO and managing director commented that recycling companies across the globe were faced with challenges during the six-month period. The company underwent extensive restructuring and implemented various cost reduction measures to counter the bad market conditions, he added.

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