After closing and consolidating operations in North America and the U.K., the e-scrap business of Sims Metals Management has posted promising results.
Results from the recently completed 2015 fiscal year (FY), which ran from July 1, 2014 to June 30, 2015, show increased revenues from Sims’ tightened global e-scrap operations. Revenues from the e-scrap wing of the company, Sims Recycling Solutions (SRS), totaled about $795 million in Australian dollars ($557 million in U.S. dollars). This sum represents a rise of 4.6 percent compared with FY 2014’s haul of about $760 million in Australian dollars ($533 million in U.S. dollars).
Galdino Claro, the publicly traded company’s CEO, spoke glowingly of the results in a conference call with investors and reporters.
“This group has not only managed to conclude the streamline initiatives in the U.K. and Canada on time and on budget but has also oriented the business model toward service and asset management, transforming itself from a negative contributor to one of the most profitable businesses in the Sims portfolio,” Claro stated.
The continued move toward asset management services, as opposed to end-of-life recovery, “will enhance and provide earnings stability,” Claro added.
SRS, which last month opted to withdraw from e-Stewards certification on the grounds that it no longer was needed for business, has gone through a sizable consolidation in the past 16 months.
After closing two processing sites in the U.S., SRS shut down all operations in Canada and greatly downsized operations in the U.K.
The results for FY 2015, Sims CEO Claro said, suggest SRS “has once again earn[ed] the right to grow.”