Sims Metal Withdraws Previously Announced Earnings Guidance

SEATTLE (Scrap Monster): Australia-headquartered Sims Metal Management Ltd. has released revised earnings guidance to investment community. The company noted that it has been forced to withdraw the guidance released by it almost a month back.

With reference to the mid-February guidance, it noted that the unprecedented spread of COVID-19 to more and more countries and the magnitude of its impact on economic activity make the company think that it is prudent to withdraw its earlier outlook. It must be noted that Sims Metal Management Ltd. had predicted underlying EBIT in the range between $23.1 million and $34.7 million for the initial half of the calendar year 2020.

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However, the company cited certain positive factors related to its global business operations. For instance, business activity in China has started to resume, which in turn will ensure gradual improvement in nonferrous metals demand. Ferrous scrap liquidity has started showing signs of improvement in several regions, especially the Middle East region, Turkey, Central and South America.

Alistair Field, Group CEO and Managing Director stated that the company will continue to focus on disciplined capital expenditure and cost management. The safety of its employees, suppliers, customers and communities in which it operates is the top priority, he added.