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.
