On February 18, the world's largest listed metal recycler New York-based Sims Metal announced its financial results for the first half of the financial year 2009-2010 (FY 2009-10) ended on December 31, reporting that the lingering effects of the global financial crisis have continued with diminished consumer spending, manufacturing activity and constrained scrap flow.
Sims posted a net profit of $39.3 million in the first half of FY 2009-10, compared with a net loss of $79.4 million in the same period of FY 2008-09. When the same periods are compared, the company's sales revenues fell 39 percent from $5.58 billion to $3.39 billion. Sims' earnings before interest, taxes, depreciation and amortization (EBITDA) of $136 million in the first half of FY 2009-10 was 46 percent down from $254.1 million in the corresponding period of the previous financial year.
Commenting on the results, Sims CEO Daniel W. Dienst stated, "In the first half of fiscal 2010 we executed a capital raising strategy to ensure that Sims Metal Management has the financial flexibility to continue on its aggressive technology capital investment strategy and remains poised to capitalize on external growth opportunities as and when such opportunities arise."