Sims Metal Management Market Update For Fiscal Year Ended 30 June 2012
Sims Metal Management Limited (the “Company”) (ASX: SGM)(NYSE: SMS)
subject to the completion of its audit and board approval, that
underlying earnings before interest, tax, depreciation, and...
Sims Metal Management Limited (the “Company”) (ASX: SGM)(NYSE: SMS) expects, subject to the completion of its audit and board approval, that underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) before significant items for the fiscal year ended 30 June 2012 as presented in the attached reconciliation to be circa $253 million. Results were impacted by difficult operating conditions, particularly in North America, as indicated in the earnings update that was released to the market on 25 May 2012. These conditions and certain significant items adversely impacted operating margins and equity accounted profits particularly in June. Statutory net loss after tax is expected to be circa $521 million for Fiscal 2012 after $594 million of non-cash goodwill (after-tax) impairment, all of which was recorded in the first half result. Revenue for Fiscal 2012 is expected to be circa $9 billion. Scrap intake and shipments in Fiscal 2012 were each circa 14.4 million tonnes. Net debt as of 30 June 2012 was circa $293 million representing 11 percent of total capital. The Company will release its final results to the market on 23 August 2012. Cautionary Statements Regarding Forward-Looking Information This release may contain forward-looking statements, including statements about Sims Metal Management’s financial condition, results of operations, earnings outlook and prospects. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. These forward-looking statements involve certain risks and uncertainties. Our ability to predict results or the actual effects of our plans and strategies is subject to inherent uncertainty. Factors that may cause actual results or earnings to differ materially from these forward-looking statements include those discussed and identified in filings we make with the Australian Securities Exchange and the United States Securities and Exchange Commission (“SEC”), including the risk factors described in the Company’s Annual Report on Form 20-F, which we filed with the SEC on 14 October 2011.
Gregg Greenberg breaks down today's market action with guests David Peltier, TheStreet's Stocks Under $10 portfolio manager, Ken Shreve, TheStreet's Market Movers portfolio manager and Ken Fisher, author of "Debunkery"