Sims Q1 profit tumbles 77% to $33m

Sims Q1 profit tumbles 77% to $33m

Metal recycling company Sims Metal Management (ASX:SGM) saw its net profit fall 77% year-on-year to $33.3 million, as the effects of the economic crisis continued to be felt in the global scrap metal industry.

Revenue shrank 49% to $1.8 billion, and the company was stuck with $5.2 million worth of atypical charges related to redundancies.

But group CEO Daniel Dienst said the result was still a significant improvement over the prior quarter, as trading conditions finally began to return to normal.

“As the economic crisis abates, we will nonetheless remained focused on those factors within our control, including managing operating expenses [and] scrap costs,” he said.

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Tags recyclingfinancial resultsSims Metal Management

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