Sims shares plunge 15% on 1H FY20 downgrade

Company News

by Anna Napoli

Sims Metal Management (ASX:SGM) has today announced that the recent and significant falls in ferrous and non-ferrous prices will negatively impact 1H FY20 and the result will be materially lower than 1H FY19.

Alistair Field, CEO and Managing Director says the escalating trade wars that were discussed at the year-end results continue to reduce the demand for steel and aluminium. This reduction in demand for scrap has driven a steep fall in prices.

Automobile sales also continue to fall and this is impacting the demand for twitch, with an accompanying fall in price.

Sims says it expects a recovery over the medium term.

Shares in Sims Metal Management (ASX:SGM) are trading 14.88 per cent lower to $10.70.

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.