LONDON : Global scrap recycler Sims Metal Management continued to downgrade earnings expectations based on its recent intake volumes and its deepsea ferrous scrap shipping program. Sims said that it expects first half fiscal 2013 earnings through December 2012 to be 20% lower than previously announced guidance from just over a month ago.
The company did not detail a new expected earnings range, but a 20% drop from its guidance provided November 15 of EBITDA in the range of $110-120 million would mean the new EBITDA forecast is likely in the range of $88-96 million for the six months ending December 31, 2012.
“Sims Metal Management anticipated relatively weak intake volumes across all regions, coupled with, until recently, tepid demand by deepsea ferrous buyers,” the company said in a statement. “Whilst recent positive economic signals in the US…(are) encouraging, the direct benefits to intake volumes and metal recycling margins typically follows at a lag which will not benefit Sims Metal Management through the 31 December 2012 period.”
The company, with core offices in Chicago and Sydney, said it expects to release its first half fiscal 2013 results on February 15, 2013.