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Sims Metal Management Announces Fiscal 2013 Half Year Results

Stocks in this article: SMS

NEW YORK and SYDNEY, Australia, Feb. 21, 2013 (GLOBE NEWSWIRE) -- Sims Metal Management Limited (NYSE:SMS) and (ASX:SGM) (the "Company") today announced revenue of $3.4 billion and a net loss after tax, on a statutory basis, of $295.5 million, representing a loss of 144.5 cents per diluted share, for the half year ended 31 December 2012. Net profit after tax (NPAT) in the first half of Fiscal 2013, on an underlying basis, was $10 million. See the Reconciliation of Statutory Results to Underlying Results for Half Years Ended 31 December 2012 and 31 December 2011 attached herein for more information. The primary differences between the statutory and underlying results is accounted for by goodwill impairment and inventory write-downs taken to account in the first half of Fiscal 2013, among other significant items.

Revenue declined 25% to $3.4 billion during the first half of Fiscal 2013, primarily due to a reduction of intake and shipments in North America. Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) were $94 million, a decrease of 33% on the prior corresponding period. In the first half of Fiscal 2013 underlying earnings before interest and tax (EBIT) was $31 million, a decrease of 58% on the prior corresponding period. Underlying NPAT was $10 million, a decrease of 76% on the prior corresponding period. In the first half of Fiscal 2013, underlying earnings per share was 4.8 cents, a decrease of 76% on the prior corresponding period.

During the first half of Fiscal 2013, the Company completed its on-market buy-back by repurchasing an additional 0.9 million shares, bringing the total number of shares repurchased to 3.9 million shares for an aggregate cost of $47 million. The Company invested an aggregate $82 million into capital expenditures (CAPEX) and $20 million into acquisitions. The Company also divested three underperforming businesses for total cash consideration of $52 million. Underlying controllable costs (adjusted to exclude the impact of significant items) were reduced by $29 million in North America Metals, $5 million in UK Metals, and $10 million in Australia Metals versus the prior corresponding period, with additional cost savings now identified by management targeted for the second half of Fiscal 2013. Net debt as of 31 December 2012 was $293 million, or 13% of total capital.

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