Lower selling prices and fewer shipments continued to wreak
havoc on Sims Metal Management Ltd.s bottom line, but the
worlds largest metal recycler has narrowed its
The company, based in
New York and Sydney, expects improvement over the next 12
months and said it plans to pick a new chief executive officer
by the end of September.
Sims posted a net loss
of Australian $466.1 million ($421 million) for its fiscal year
ended June 30, 25.1 percent lower than a A$622.5-million loss
the previous year, on revenue that fell 20.4 percent to A$7.19
billion ($6.49 billion) from A$9.04 billion.
While the overall
company still faces headwinds, its North American segment has
shown some improvement due to better margins and cost
reductions through corporate discipline, Sims said, and expects
to see the results of cutting costs and working to widen
margins over the next fiscal year.
the benefits of portfolio optimization strategies implemented
in North America, including the divestiture of under-performing
businesses since the start of (fiscal 2013), will begin to take
hold in (fiscal 2014)," it said.
interest and taxes by Sims North American metals segment
improved 46.6 percent, with a A$328.8-million ($296.7-million)
loss vs. a A$615.9-million loss a year earlier on revenue that
fell 24.8 percent to A$4.53 billion ($4.09 billion) from A$6.03
billion due to a mix of lower sales tonnage and declines in
ferrous and nonferrous metal prices. The segment was able to
cut A$48.4 million ($43.7 million) in costs.
The North America
group shipped 9.38 million tonnes with a 15.4-percent margin in
the 12 months ended June 30 vs. 11.08 million tonnes with an
11.7-percent margin in fiscal 2012.
Scrap markets remain
volatile, but the companys deep-sea ferrous and
nonferrous trading activity is firm. Demand increased for the
companys West Coast export business in August following
lackluster demand in July, while selling prices on the East
Coast increased $30 per tonne in July and another $10 in
Sims is optimistic
that improved performance in North America is a sign of
progress in scrap generation fundamentals.
Auto sales are on
track to reach 15.9 million vehicles in 2013 and appliance
sales from January to June were up 7 percent compared with the
first six months of last year. Autos and appliances can account
for 50 to 70 percent of shredder feed, the company said.
Sims said it expects
to name its new chief executive officer by the end of the
quarter. A global leadership team, which has been overseeing
the companys activity since the June 30 retirement of
chief executive officer Daniel W. Dienst, has narrowed its
search to a group of external candidates.