Scrap metal recycler Sims Metal Management Ltd
(ASX:SGM) has reported a 31% fall in sales for the nine months to March 31 due to a weak North American market.
Group sales for the period dropped to $5 billion, but the company is expecting earnings growth in the three months to June 30.
The company posted a profit of $70.4 million for the nine months, but earnings before interest, tax, depreciation and amortisation were $214 million - down 23% on a year earlier.
Sales from North America totalled $3.3 billion, down 40% from a year before.
Basic earnings per share for the nine months was 37 cents.
The company says the scrap metal intake for the nine month period totalled 9.7 million tonnes, but it is seeing a significant improvement in scrap flows in the fourth quarter.
However, its North American scrap intake fell 4% to 7.3 million tonnes.
Profit for the three months to March 31 was $30.4 million and revenue for the period was $1.6 billion.
CEO Daniel Dienst says the recycler has been encouraged by the third quarter results and has built momentum heading into the close of fiscal 2010.
Sims Metal Management reported a loss of $150.3 million for the 2009 financial year.
