Scrap metal recycler Sims Metal Management Ltd
(ASX:SGM) has reported a big fall in profit for the first quarter.
Net profit after tax for the three months to September 30 came to $33.3 million a 77 per cent decline on the same period last year.
Sims first quarter sales revenue dropped 49 per cent to $1.8 billion compared to the previous corresponding period.
However CEO Daniel Dienst says the company achieved significantly improved results in the first quarter.
The company says global conditions improved through the first quarter for both ferrous and non-ferrous commodities, at this early stage of the second fiscal quarter though it says ferrous markets have weakened while non-ferrous markets remain firm.
Mr Dienst says that while the company is pleased that it has returned to profitability, rapidly changing market conditions make it difficult to provide further guidance.
Sims Metal Management posted a $150 million loss in 2009.
