Sims Metal to quadruple earnings

Metal recycler Sims Metal Management (SGM) has unveiled plans to more than quadruple its earnings within five years as it works to get back on track after a string of disappointing results.

Investors cheered the news, sending Sims shares 4.19% higher to $10.69 at 10.36am (AEST), against a benchmark index lift of 0.55%. 

The world's largest metal recycler has announced a five-year plan to lift earnings through improvements to its operational performance.

Chief executive Galdino Claro said the plan would see the company streamline and grow its operations.

"This renewed focus on our strengths and competitive position will set us up well to capitalise on future growth opportunities for the benefit of our customers, employees and shareholders," he said.

"This is a new Sims Metal Management where, as the leader in our industry, we are about to start leading."

Sims said it expects to lift earnings by $32 million by the end of 2016 by reducing costs and exiting loss-making operations.

But the company did not announce any job cuts or additional restructuring as a part of the plan.

Sims has endured a difficult couple of years due to a downturn in the metal recycling market, a weak performance from its US business and a major fraud in its UK operations.

It has flagged $115 million in writedowns for the 2013-14 result following the closure of much of its Sims Recycling Solutions operations in the UK and Canada.

The company posted a $466 million loss in 2012-13, which followed a $622 million loss the previous year.