AUS
NZ
UK
CA
USA
IND
_06_15_2026_08_31_29_563066.jpg)
Sims Metal Management Limited (ASX:SGM) is into innovative recycling solutions and global metal recycling under the metals and mining sector. The metal recycling operation of the company is diversified geographically with Australia/New Zealand (ANZ) Metals, Europe Metals, North America Metals and Global E-Recycling segments.
Today (20 February 2019) the company has presented its 1H FY19 results where it has reported the underlying net profit after tax of $76.7 million and underlying diluted EPS of 37.2 cents for 1H FY19. Statutory NPAT of the company stood at $76.5 million representing a diluted EPS of 37.1 cents. The revenue of the company stood at $3,334 million in 1H FY19 up by 12% compared to 1H FY18, on the back of an increase in volumes and higher average sales price. In constant currency terms, the revenue was up by 6.1% comparing to the prior corresponding period, while sales volumes increased 4% to 4.951 million tonnes.
Underlying EBIT of the company stood at $110 million in 1H FY19 as compared to the underlying EBIT of $125 million in 1H FY18. The business was robust and delivered a solid result in part due to investment in technology irrespective of challenging market conditions that impacted the Europe Metals business and the companyâs investment in SA Recycling.
The company has declared an interim dividend for 1H FY19 of 23.0 cents per share, 100% franked. It will be paid on 27 March 2019, Wednesday to shareholders. The ex-date and the record date however for the same being March 12, 2019, and March 13, 2019, respectively.
The company has shown resilience in the face of challenging market conditions. While the company is more robust, potential still exists for negative consequences from increasing escalation of trade wars, change in policy frameworks and clarification of the quota system relating to Category 6 restrictions in China. These uncertainties are clear warnings that need to be considered in the outlook for FY19. However, H2 FY19 has commenced with some early signs of improvement, including Turkish demand increasing and ferrous and nonferrous prices seeming to stabilise.
On 20 February 2019, the company also announced that it has been served with a representative proceeding filed in the Federal Court of Australia, which names SMM as respondent (Proceeding). The Proceeding, filed by William Roberts Lawyers, is brought on behalf of shareholders who acquired an interest in SMMâs ordinary shares in the period from 21 August 2015 to 19 February 2016. The company strongly denies any liability and will vigorously defend the proceeding.
On the price-performance front, the stock of Sims Metal Management last traded at $11.660 with an increase of ~4.66% during the dayâs trade and with a market capitalisation of $2.26 billion. The stock has generated a YTD return of 13.67% and posted negative returns of 25.58% and 8.84% over the last six months and three months period; however, the return over the last month was 21.22%. It has a 52-week high price of $17.940 and a 52-week low price of $8.910 with an average trading volume of ~1.20 million.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
