Sims Metal Management Ltd
(ASX:SGM) has returned to profit, posting an annual net profit of $126.7 million up from a loss in 2009.
The scrap metal recycler has cautioned that overseas scrap flows remain weak because of uncertain economic and weather conditions in North America and Europe.
For the year to 30 June, earnings before interest, tax, depreciation and amortisation rose 36 per cent to $352.9 million.
Sales revenue decreased 14 per cent to $7.5 billion, Sims says because of declines in shipments and average selling prices, which also included an adverse effect from foreign exchange.
The company reports that it finished the year operationally and financially stronger and continued to acquire businesses in each of the regions that Sims operates.
The fiscal 2010 result is significantly higher that the net loss of $150.3 million, Sims Metal Management recorded in the year to 30 June 2009.
