Iron drives Sims growth

Sims Metal Management has posted a 51.6 per cent lift in full-year profit on the back of a vastly improved performance by its ferrous (iron) division. Net profit rose to $192.1 million for the 12 months to June 30 from $126.7 million in the previous year, the Sydney-based company announced yesterday. It sharply lifted its second-half net profit, up 190 per cent on the first half of the financial year.

By InvestSMART · 27 Aug 2011

By InvestSMART ·
27 Aug 2011

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In the first half, Sims struggled with a sluggish economic recovery in North America and scarcity of scrap. Sims shares were up 47? at $15.29 yesterday. Revenue increased 18.7 per cent to $8.85 billion. Profit on an underlying basis was $182 million, up from $147 million in the previous year. The company declared a final dividend of 35? per share (43 per cent franked) with a total dividend of 47? per share.

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Frequently Asked Questions about this Article…

What drove Sims Metal Management’s profit growth in the latest year?

Sims Metal Management’s 51.6% lift in full-year profit was driven primarily by a vastly improved performance in its ferrous (iron) division, according to the company announcement.

How much net profit did Sims report for the 12 months to June 30?

Sims reported net profit of $192.1 million for the 12 months to June 30, up from $126.7 million in the previous year.

How did Sims perform in the second half compared with the first half?

The company sharply lifted its second-half net profit, with second-half net profit up 190% on the first half of the financial year.

What were Sims’ revenue and revenue growth for the year?

Sims’ revenue increased 18.7% to $8.85 billion for the 12 months to June 30.

What was Sims’ underlying profit and how did it compare with the prior year?

On an underlying basis, Sims reported profit of $182 million, up from $147 million in the previous year.

What dividend did Sims declare and how franked was it?

Sims declared a final dividend of 35 cents per share (43% franked), bringing the total dividend to 47 cents per share for the year.

How did the market react to Sims’ results and what was the share price reported?

The market reacted positively to the results — Sims shares were trading at $15.29 following the announcement.

What challenges did Sims face earlier in the year that affected results?

In the first half of the year Sims struggled with a sluggish economic recovery in North America and a scarcity of scrap, which weighed on early performance before the stronger second half.