Sims Metal Management Limited (ASX:SGM) has warned its full year earnings will be less than 85 per cent of the earnings achieved from the year before.
The metals manufacturer posted a net profit of $192 million in fiscal 2011 but swung to a loss in the first half of fiscal 2012.
Sims has blamed the forecast on many factors including global economic challenges and headwinds, softness in ferrous metal prices and volatility in foreign currency markets.
Other factors include potential for gains or losses on non-ferrous and precious metal commodity hedges and timing and recognition of planned cargo and container shipments.
Full year results are expected to be released on August 23, 2012.
In the first half of the 2012 financial year Sims Metal Management reported a net loss of $557 million.
