Sims Metal Management Limited disclosed a statutory net loss after tax (NLAT) of $89 million, representing a loss for the full year ended June 2014.
Underlying net profit after tax (NPAT) was $69 million, representing earnings per diluted share of 33.6 cents.
Sales revenue of $7,129 million in FY14 was down 0.9 percent compared to FY13. In constant currency terms, sales revenue was down 10.5 percent due to lower sales volumes and lower average nonferrous and precious metal prices.
Sales volumes of 11.8 million tons in FY14 decreased by 7.6 percent versus FY13, due in part to adverse winter weather in North America. Underlying EBIT margins nearly doubled, driven by cost reductions, divestment of underperforming operations, and early stage benefits from asset optimization strategies.
Underlying EBIT was $119 million in FY14, an increase of 77.1 percent over FY13.
Group chief executive officer Galdino Claro said, “Our stronger result was driven by solid contributions from our metals recycling businesses in Australasia and Europe, where recent investments and restructuring actions are translating into meaningfully improved earnings. These gains were partially offset by lower earnings from the e-recycling (SRS) businesses in the UK and North America. Softer earnings in North America metals recycling business were impacted by weak volumes associated with atypically severe winter weather in the second half. Despite these conditions, sales margins improved in North America as the business began to place more emphasis on transactional profitability.”
Remarking on the recent strategic progress at the company, Claro said, “As we begin fiscal 2015 we have accelerated our 5 year strategic plan to achieve over $300 million of annual EBIT through internal initiatives alone. While still in the very early stages, our implementation timelines remain on track as we roll out the initiatives across the group.”
The company has determined to pay a final dividend for FY14 of $.10 per share to shareholders on the company’s register at the record date of October 7, 2014. This is an exception to the company’s dividend policy which is to distribute 45 percent to 55 percent of NPAT, subject to the discretion of the board and remains unchanged. The company’s dividend reinvestment plan remains suspended.
Published in the October 2014 Edition of American Recycler News
