Proactive investors logo proactive australia

You need the Flash Player version 8.0.0.0 or higher and a JavaScript enabled browser to view this content
You need the Flash Player version 8.0.0.0 or higher and a JavaScript enabled browser to view this content
Additional information
Additional Information
Market: ASX
Sector: Aerospace
Epic: ASX:SGM
News: Latest news
Web Site: Sims Group
Other Articles:

RSS - Subscribe to the NewsEditorial news ▼

Proactive Investors United Kingdomrss_icon

RSS - Subscribe to the NewsBreaking news ▼

Proactive Investors United Kingdomrss_icon

RSS - Subscribe to the NewsEditorial news ▼

Proactive Investors North Americarss_icon

Sims Group

Sims Group operates 230 sites across four continents processing end of life products, metals and non-metallic materials,
Friday, November 21, 2008

Sims forecasting profit rise on rebound in base metals

Sims Group (ASX:SGM), the world's largest scrap metal recycler, said it expects first half net profit to increase by as much as 37 per cent.  This is based on a rise in metals prices from their recent lows on renewed customer demand.

Chief executive Daniel Dienst told the company's annual general meeting on today that Sims expected net profit for the six months to December 31 to rise to between $120 million and $140 million, from $102.2 million in the same period last year.

The guidance took into account inventory adjustments and provision of about $50 million pre tax, and would be reached as long as commodity prices did not fall significantly and customers had access to cash.

Sim's customers had significantly reduced or halted purchases of scrap metal because of the credit crisis that started about 14 months ago, which worsened significantly in September this year.

Financial turmoil and the credit crisis had contributed to the rapid fall in commodity prices this year, including metals, the main contributor to Sims' revenue.

Register here for more articles on Sims Group

You need the Flash Player version 8.0.0.0 or higher and a JavaScript enabled browser to view this content

Disclaimer

This document is intended solely for the information of the particular person to whom it was provided by Proactive Investors Australia Pty Ltd and should not be relied upon by any other person. Although we believe that the advice and information which this document contains is accurate and reliable, Proactive Investors Australia Pty Ltd Limited has not independently verified information contained in this document which is derived from publicly available sources, directors and proposed directors and management. Proactive Investors Australia Pty Ltd assumes no responsibility for updating any advice, views, opinions, or recommendations contained in this document or for correcting any error or omission which may become apparent after the document has been issued. Proactive Investors Australia Pty Ltd Limited does not give any warranty as to the accuracy, reliability or completeness of advice or information which is contained in this document. Except insofar as liability under any statute cannot be excluded, Proactive Investors Australia Pty Ltd Limited and its directors, employees and consultants do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this document or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this document or any other person.

This document has not been written for the specific needs of any particular person and it is not possible to take into account each investor’s individual circumstances and that investors should make their adviser aware of their particular needs before acting on any information or recommendation. Proactive Investors Australia Pty Ltd Limited, its employees, consultants and its associates within the meaning of Chapter 7 of the Corporations Law may receive commissions, underwriting and management fees, calculated at normal client rates, from transactions involving securities referred to in this document and may hold interests in the securities referred to in this document from time to time.

Disclosure of Interest

Proactive Investors Australia Pty Ltd and its associates may have owned shares in the above company as at the date of the report. This position is subject to change without notice.