Sims Metal Management Limited (ASX: SGM) provided a trading update on 28 October 2019. The Company notified that if the market conditions do not deteriorate further, it is expected that its:
- Underlying EBIT loss for 1H FY20 to be approx. between $20 million to $30 million.
- FY20 (full-year) Underlying EBIT profit would be in the range of $20 million to $50 million.
In addition, the lower prices for ferrous scrap had compressed margins. Inventories would be sold at a loss, impacting results through to December.
By 1:48 PM AEST, SGM was trading $9.14, down by 9.4% relative to the last close.
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