Sims Metal Management earnings up in fiscal 2015

Australia’s Sims Metal Management (SMM), one of the world’s largest recycling companie, has reported lower revenue but increased profits in its annual financial report for its fiscal year, which ended June 30, 2015.

In a presentation delivered Aug. 21 and posted on the company’s website, the company says it recorded higher earnings for the year despite lower sales volumes. The company cites strong growth in Europe and growth in global electronics recycling operations as factors in the company’s performance for the year.

Revenue fell 11 percent to AU$6.3 billion (US$4.6 billion), while underlying earnings before interest and taxes (EBIT) increased 19 percent to AU$142 million (US$104 million). The company also says its volume of materials sold fell to a level of 10.5 million metric tons. Underlying earnings per share (EPS) diluted increased to a level of AU$0.49 (US$0.36), SMM reports.

Global electronics recycling EBIT (earnings before income tax) increased $38 million, driven by streamlining actions and improved results in Europe and the U.S., according to SMM.

The company also says that for North American metals operations, EBIT for its West Coast and East Coast Regions improved by AU$16 million during the 2015 fiscal year, but the significant earnings improvement in the East and West was offset by extremely challenging competitive conditions in the North America Central Region.

Europe Metals EBIT increased AU$8 million because of what the company calls increased operating efficiencies and lower costs, offsetting a 1 percent reduction in volume, SMM reports.

The company says its 2015 earnings were negatively affected by third quarter commodity price declines, including a 24 percent drop in ferrous scrap prices, and severe weather in North America.