NEW YORK Sims Metal
Management Ltd. (SimsMM) has revised its earnings forecast for
the first half of its fiscal year, indicating a further
The company expects underlying
earnings before interest, taxes, depreciation and amortization
(Ebitda) for the six months ending Dec. 31 to be some 20
percent lower than its previous guidance range, putting
earnings at some $88 million to $96 million. That would be
between $45 million and $53 million lower year on year.
"This updated earnings guidance
relates primarily to SimsMMs assessment of recent intake
volumes and its anticipated shipping program, particularly for
deep-sea ferrous products, forecasted for December 2012," the
company said late Tuesday.
Chief executive officer Daniel
W. Dienst in November had forecast that Ebitda for the period
would in a range of $110 million to $120 million for the
six-month period (
amm.com, Nov. 15), suggesting a drop of $21
million to $31 million from $141 million in the same period a
"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. (While) recent positive
economic signals in the U.S.including declining
unemployment, positive consumer confidence data and increasing
industrial production(are) encouraging, the direct
benefit to intake volumes and metal recycling margins typically
follows at a lag, which will not benefit SimsMM" through the
end of the year, the company said.
The New York-based company said
Tuesdays guidance is subject to variations that could
relate to the timing of shipments and the impact of commodity
hedging, and excludes items that might be reported related to
asset sales, redundancies and other significant items.
The company expects to release
its results for the fiscal first half on Feb. 15.