Scrap metals recycling company Sims Metal Management Ltd
(ASX:SGM) has posted a profit for the first half of fiscal 2010 after a loss the year before but says a lack of clarity regarding future economic conditions prevents it from providing a specific outlook for the rest of the year.
Net profit after tax for the six months to December 31, 2009 came to $39.9 million, up from a loss of $79.4 million the year before.
Sales revenue dropped 39% to $3.4 billion primarily due to lower average selling prices and shipments.
The company says diminished consumer spending and manufacturing activity, mainly in North America and the UK constrained scrap flows.
Sims says scrap metal intake may continue to be challenged in developed, mature economies such as North America and the UK primarily due to lingering effects of the global financial crisis and recession.
Sims declared a final dividend of 10 cents a share fully franked.
Sims Metal Management posted a loss of $150.3 million for the year to June 30, 2009.
