By Rhiannon Hoyle
Metals recycling company Sims on Monday said it expects first-quarter earnings before interest and taxes to be roughly breakeven, citing continuing weak market conditions and signs of softness in a previously resilient U.S. domestic market.
“August management accounts are now nearing completion and, when combined with September trends, it is clear that weak market conditions have not abated,” Sims said in statement.
Sims said its forecast of roughly breakeven first-quarter Ebit is subject to some typical market dynamics, including the timing of shipments and final purchase price for scrap to fulfill those shipments.
The company last month reported a 70% fall in annual net profit for fiscal 2023, reflecting lower sales volumes and prices. Sims had cautioned that global steel demand remained subdued and that the company expected scrap prices wouldn’t be sufficient enough to encourage increased supply.
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