EBIT of 350 percent over fiscal year 2013: Sims Metal announced 5 year strategic plan

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Source: Sims Metal Management Ltd

Sydney, Australia / New York — Sims Metal Management Limited has announced a five year strategic plan to grow underlying EBIT by 350 percent over the fiscal year 2013 underlying result, following a review of the Company’s global operating portfolio by new Group CEO Galdino Claro.

Galdino Claro underlined: „We have completed a comprehensive review of the global operations of Sims Metal Management and developed a plan which will significantly improve operational performance and earnings, without relying on external cyclical recovery or acquisitions. Sims Metal Management is a great business operating in a growing industry. This renewed focus on our strengths and competitive position will set us up well to capitalise on future growth opportunities for the benefit of our customers, employees and shareholders.“

„Our five year plan includes three key stages of Streamlining, Optimising, and Growth, and we are already seeing the initial benefits where we have begun implementation. We expect streamlining actions, through cost reductions and exiting loss making businesses, will generate $32 million in EBIT benefits, with 50 er cent to be achieved in fiscal year 2015 and fully realised during fiscal year 2016.“

The Sims Meteal CEO confirmed that he expects no significant restructuring charges in regard to fiscal year 2014 arising from the strategic review, other than those already announced to the ASX on 24 June 2014.

Galdino Claro: „We also see significant scope to further improve our position in both the global metal recycling and electronic recycling businesses. As a Company which has grown largely through a long history of acquisitions, we have not yet fully realised the inherent synergies of these transactions. Through sharing best practices across our global footprint and focusing the business back to our core drivers of profitability, I believe significant value and earnings improvements can be generated.“

And he added: „This is a very exciting time at Sims Metal Management. Our renewed focus on supplier relationships, logistics, operational efficiencies and product quality will allow us to better take advantage of the opportunities in the market over the long term. This is a new Sims Metal Management where, as the leader in our industry, we are about to start leading.“

Source: Sims Metal Management