Sims Limited announces projected Q1 FY25 trading performance

Sims Limited (ASX:SGM) has released guidance on the expected trading performance of its Metal businesses for the first quarter of FY25. The company anticipates an estimated EBIT of approximately $55 million, with North America Metal leading the way with an estimated $29 million in EBIT and 22% in Trading Margin. SA Recycling is expected to deliver EBIT of $24 million, while Australia and New Zealand Metal is projected to contribute $13 million in EBIT for the quarter.

Stephen Mikkelsen, CEO and Managing Director of Sims Limited, comments on the announcement

It is encouraging to see the improved performance of our Metal businesses despite the challenging market conditions, particularly as we refocused our portfolio. I am especially pleased with the strong results in NAM, which highlight the successful execution of our strategy in a difficult market and the team's commitment to organisational adjustments.

Summary of Sims Limited's metal trading guidance and outlook

Sims Limited anticipates a positive start to FY25 for its Metal businesses, with estimated EBIT of circa $55 million in Q1. The company's North America Metal segment is expected to lead the way with $29 million in EBIT and 22% in Trading Margin, reflecting the successful execution of its revised strategy. SA Recycling's robust performance is projected to deliver EBIT of $24 million, while Australia and New Zealand Metal faces challenging market conditions but is expected to contribute $13 million in EBIT for the quarter. The company emphasizes that the Q1 FY25 estimates are unaudited and subject to shipping schedules and market volatility, and may not fully reflect future earnings.