Sims 1Q FY19 Update

Company News

by Anna Napoli

Sims Metal Management (ASX:SGM) has provided the market with a  Quarter 1 2019 update, with earnings for the period expected to be between $58 and $63 million.

A result within this range would be higher than this year's first quarter result of $45 million but less than the fourth quarter of 2018.

Meantime, Quarter 1 2019 income in the company's 50 per cent joint venture SA Recycling is expected to be $10-15 million lower than fourth quarter 2018.

The scrap metal company says two main issues have driven earnings lower in the current quarter.

The first being lower intake volumes, and, secondly Zorba sales have posed a challenge in the current market.

Shares in Sims Metal Management (ASX:SGM) are trading over 10 per cent lower to $11.99 following the news.  


 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.