Sims Metal Management Limited disclosed restructuring initiatives designed to reset and streamline the Sims Recycling Solutions (SRS) business as part of a group strategic review currently being undertaken.
The review has determined certain loss making assets to be outside of the strategic long-term interests of the company. These operations include a substantial portion of SRS in the UK and all of SRS in Canada. Legislation and market dynamics in the UK and Canada have resulted in these businesses being commercially unattractive to the company going forward. The company will redirect its capital and resources instead to other portions of the global businesses that are more attractive as it continues to develop its platform for SRS customer relationships worldwide.
The company’s UK Metals operations, fridge recycling and IT asset management solutions are core and therefore not impacted by the restructuring activities. SRS operations outside of the UK and Canada are also core and therefore not impacted by the restructuring activities.
The company expects to recognize restructuring charges of circa $80 to $85 million of which the non-cash portion relates primarily to fixed asset impairment and is circa $35 million. The restructuring charges will be recorded as significant items in the company’s second half results of FY14.
In addition to the above impacts from restructuring activities, the company is currently engaged in its annual impairment measurement process, and expects to impair goodwill in regard to SRS in an amount ranging from $20 to $30 million.
These initiatives and charges are part of a broad review of the company’s operations and strategy.
Published in the September 2014 Edition of American Recycler NewsAdd a comment
The American Iron and Steel Institute (AISI) reported that for the month of April 2014, U.S. steel mills shipped 8,235,096 net tons, a 1.2 percent decrease from the 8,337,578 net tons shipped in the previous month, March 2014, and a 3.2 percent increase from the 7,978,531 net tons shipped in April 2013. Shipments year-to-date in 2014 are 32,086,347 net tons, a 1.7 percent increase versus 2013 shipments of 31,547,910 net tons for four months.
A comparison of April shipments to the previous month of March shows the following changes: hot rolled sheet, up 2.0 percent; hot dipped galvanized sheets and strip, no change; and cold rolled sheet, down 0.1 percent.
Published in the August 2014 Edition of American Recycler NewsAdd a comment
Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis (SIMA) data, the American Iron and Steel Institute (AISI) reported that steel import permit applications for the month of May total 3,950,000 net tons (NT).Add a comment
Girls Scouts of Kansas Heartland Council received the National Recycling Champion award in the third annual Great American Can RoundUp (GACR) Scout Council Challenge by recycling 32,199 lbs. of aluminum cans and generating more than $16,000 for scouting activities.Add a comment