SYDNEY, Australia and NEW YORK, Jan. 20, 2013 (GLOBE NEWSWIRE) -- Sims Metal Management Limited (the "Company") (ASX:SGM) (NYSE:SMS) advises the market that it has identified that the carrying value of inventory in its UK business is materially overstated. The inventory in question is predominately associated with the Company's Recycling Solutions business at Long Marston and Newport. Based on information received by Senior Management and the Board, the Company currently believes the inventory adjustment to be circa $60 million and relates to both changes in the assessment of the net realizable value of certain stock and to book to physical adjustments. The preliminary findings indicate the situation has arisen in the context of control failures and potential fraudulent conduct by local and regional plant management responsible for technology and downstream processing systems in the UK.
Sims Metal Management Advises Inventory Adjustments Related To UK Operations
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.