Metal recycling company Sims Metal Management Ltd
(ASX:SGM) has reported a net loss of $150.3 million for the year due to impairment charges but expects to improve its performance in fiscal 2010.
The net loss compares to a profit of $440 million the year before.
The result was impacted by a non-cash goodwill impairment charge of $191.1 million and $131 million in abnormal costs and adjustments.
Underlying net profit after tax for the year to June 30 came to $172 million, down from $412 million the year before.
CEO Daniel Dienst says the company is unable to provide a specific outlook for fiscal 2010 at this time due to the lack of clarity regarding future economic conditions that could affect scrap metal flows.
However Mr Dienst says Sims is encouraged by recent trends in the market place, saying that it remains cautiously optimistic that conditions will continue to improve and that Sims will deliver improved financial results in fiscal 2010.
Sims declared a final dividend of 10 cents a share, down from 75 cents last year. Sims Metal Management’s profits have been rising over the last couple of years.
Medical diagnostic services provider Sonic Healthcare Ltd (ASX:SHL) has posted a 29 per cent jump in full year profit today.
Net profit for the 12 months to June 30 rose to $315 million, on revenue of $3.014 billion which was 27 per cent higher than fiscal 2008.
CEO Dr Colin Goldschmidt says the result shows that the company is resilient against global economic conditions and having maintained a strong balance sheet through the credit crisis, Sonic is now set for further expansion as markets improve.
Looking ahead the company says its outlook for the 2010 fiscal year is positive, with profit expected to grow by 10 - 15 per cent.
Sonic declared a final dividend of 35 cents a share, bringing the total for the year to 57 cents a share, a 10 per cent increase over the previous year. Sonic Healthcare’s profits have been increasing year on year for the past four years.
Coal producer Gloucester Coal Ltd (ASX:GCL) says it achieved a record net profit of $81.7 million for the full year, up from $23.4 million a year ago.
The company says the result was based on revenue from the sale of coal of $307 million compared with $160 million in fiscal 2008, achieved through record sales prices for Gloucester coking and thermal coal.
CEO Barry Tudor says the company’s strong performance has been achieved through its flexible response to changing market conditions.
The company says its expansion to annual production of 2.8 million tonnes is on track and on budget.
The coal producer says customers indicate a more positive outlook for coking coal and the company is positioning itself to take advantage of the expected increase in demand.
Gloucester says export thermal coal prices have improved since the end of the 2009 financial year, with continued strong demand for its thermal coal.
Gloucester recently agreed to supply thermal coal in 2011 and 2012 fixed at a high dollar margin and will continue to seek thermal coal contracts which maximise profit margin and deliver consistent offtake of thermal product. Gloucester Coal’s net profits over the last five years have been inconsistent.
