The Sims Metal Management Ltd (ASX: SGM) share price is up 0.77% today to $16.92, after the company released its half year results.
Sims is a global player in the metals and electronics recycling industry, with operations in five continents and a flourishing North American division accounting for about half its revenue.
Here are some key figures for the first half of FY 2018, compared to the previous corresponding period:
- Underlying EBIT up 60.4% to $123.5 million
- Underlying NPAT up 35.5% to $81.3 million
- Diluted EPS up 11.4% to 44.8 cents.
Sales revenue grew 25% to approximately $3 billion, thanks to higher commodity prices and increased demand from export markets. Demand for ferrous scrap surged in response to the recent decline in steel exports from China, where the industry is facing stronger regulation.
The North American business more than doubled its earnings, marking its best half-year results in the past seven years. The recent reform in US corporate taxation also helped boost the profits by nearly $10 million.
The company raised its interim dividend 15% to 23 cents per share, fully franked, payable on March 28.
