Sims Metal Management’s scrap intake seems to have recovered, following the 15% drop its European division experienced in the last quarter of 2010 due to severe weather.
Over the nine month period ending 31 March 2011, scrap intake at its European operations was down 3% against the same period in the previous year. This is 1% less than the company reported in its half-year results, when the total dip was 4%. However, the company’s total global scrap intake across all operations, increased by 9% against the same period in 2010, to 10.5m tonnes.
Group chief executive officer Daniel Dienst said: “The end of the Northern hemisphere winter conditions, along with some modest evidence of improving economic activity in the US combined to lift scrap availability during our third quarter…Sims Recycling Solutions our electronics businesses, again, executed well.”
The European division increased its earnings before interest and taxes (EBIT) by 66% year on year over the nine month period ended March 2011, to AUS$77.1m (£50.7m). Its sales revenue was up 22% to AUS$1.1bn. Overall, SimsMM earned revenue of AUS$6.2bn (£4bn) – up 23% on the corresponding period in 2010. Its EBITDA was AUS$295.3m (£194.3m) – up 38% over the same period in 2010.
Speaking about the outlook for the metals market for the rest of 2011, Dienst explained: “The ferrous pricing environment, as well as freight rates, nonetheless remains attractive for international trading. We currently expect ferrous prices to trade roughly at their current levels over the balance of fiscal 2011. Non-ferrous markets remain liquid as well, albeit with a fair amount of pricing volatility, in the face of monetary tightening by China’s central bank and government.”