At its Annual General Meeting on 15 November 2012, Sims Metal Management
Limited (SimsMM) (ASX: SGM) (NYSE: SMS) provided guidance for first half
Fiscal 2013 underlying earnings before interest, tax, depreciation, and
amortisation (EBITDA) in the range of $110 to $120 million. Due to
continued challenging market conditions, SimsMM now expects first half
Fiscal 2013 underlying EBITDA to be approximately 20% lower than the
previous guidance range.
This updated earnings guidance relates primarily to SimsMM’s assessment
of recent intake volumes and its anticipated shipping program,
particularly for deep sea ferrous products, forecasted for December
2012. As indicated at the Annual General Meeting, SimsMM anticipated
relatively weak intake volumes across all regions coupled with, until
recently, tepid demand by deep sea ferrous buyers. Whilst recent
positive economic signals in the U.S., including declining unemployment,
positive consumer confidence data and increasing industrial production,
is encouraging, the direct benefit to intake volumes and metal recycling
margins typically follows at a lag which will not benefit SimsMM through
the 31 December 2012 period. Consistent with the Annual General Meeting
update, this updated underlying guidance is subject to variations that
may relate to the timing of shipments and the impact of commodity
hedging, and excludes items that may be reported related to asset sales,
redundancies and other significant items.
SimsMM currently expects to release its first half Fiscal 2013 results
to the market on 15 February 2013.
Cautionary Statements Regarding Forward-Looking Information
This release may contain forward-looking statements, including
statements about Sims Metal
Management’s financial condition,
results of operations, earnings outlook and prospects.
statements are typically identified by words such as "plan,” "believe,”
"anticipate,” "intend,” "outlook,” "estimate,”
"forecast,” "project” and other similar words and
These forward-looking statements involve certain risks and
uncertainties. Our ability to predict results or the actual effects of
our plans and strategies is subject to inherent uncertainty. Factors
that may cause actual results or earnings to differ materially from
these forward-looking statements include those discussed and identified
in filings we make with the Australian Securities Exchange and the
United States Securities and Exchange Commission ("SEC”), including the
risk factors described in the Company’s Annual Report on Form 20-F,
which we filed with the SEC on 12 October 2012.
Because these forward-looking statements are subject to assumptions and
uncertainties, actual results may differ materially from those expressed
or implied by these forward-looking statements. You are cautioned not to
place undue reliance on these statements, which speak only as of the
date of this release.
All subsequent written and oral forward-looking statements concerning
the matters addressed in this release and attributable to us or any
person acting on our behalf are expressly qualified in their entirety by
the cautionary statements contained or referred to in this release.
Except to the extent required by applicable law or regulation, we
undertake no obligation to update these forward-looking statements to
reflect events or circumstances after the date of this release.
All references to currencies, unless otherwise stated, reflect measures
in Australian dollars.
About Sims Metal Management
Sims Metal Management is the world’s largest listed metal recycler
with approximately 270 facilities and 6,600 employees globally. Sims’
core businesses are metal recycling and electronics recycling. Sims
Metal Management generated approximately 88 percent of its revenue from
operations in North America, the United Kingdom, Continental Europe, New
Zealand and Asia in Fiscal 2012. The Company’s ordinary shares are
listed on the Australian Securities Exchange (ASX: SGM) and its ADRs are
listed on the New York Stock Exchange (NYSE: SMS). Please visit our
for more information on the Company and recent developments.