Sims Metal Management Announces Fiscal 2014 Full Year Results

Results at a Glance

STATUTORY (A$m)	FY14	FY13	Change %
Sales revenue	7,129.0	7,193.0	(0.9)
EBITDA1	124.8	(42.5)	NMF2
EBIT	(27.6)	(470.4)	NMF2
NPAT	(88.9)	(467.3)	NMF2
EPS (cents) - diluted	(43.5)	(228.6)	NMF2
UNDERLYING (A$m)	FY14	FY13	Change %
Sales revenue	7,129.0	7,193.0	(0.9)
EBITDA1	242.4	190.4	27.3
EBIT	118.5	66.9	77.1
NPAT	68.8	15.9	332.7
EPS (cents) - diluted	33.6	7.7	336.4

¹ EBITDA is an unaudited measurement of non-conforming financial information.
² NMF = not meaningful

Key Points

• Underlying earnings before interest and tax (EBIT) of $119 million, up by 77%, driven by higher underlying EBIT margins which increased from 0.9% to 1.7% over the previous year
  
• Cash flow from operating activities was $210 million, with a further $38 million received through the sale of non-core businesses
   
• Net cash position of $42 million as at 30 June 2014, compared to net debt of $154 million as at 30 June 2013
  
• Final fully franked dividend of 10.0 cents per share determined for FY14
   
• Five year strategic plan now in place to achieve over $300 million EBIT annually through internal initiatives alone, with encouraging early stage gains beginning to be realised

Sydney, Australia and New York, 22 August 2014 (ASX:SGM) (OTC:SMSMY) -- Sims Metal Management Limited (the "Company") today announced a statutory net loss after tax (NLAT) of $89 million, representing a loss per diluted share of 43.5c for the full year ended 30 June 2014. Underlying net profit after tax (NPAT) was $69 million, representing earnings per diluted share of 33.6 cents.

Sales revenue of $7,129 million in FY14 was down 0.9% compared to FY13. In constant currency terms, sales revenue was down 10.5% due to lower sales volumes and lower average non-ferrous and precious metal prices.

Sales volumes of 11.8 million tonnes in FY14 decreased by 7.6% versus FY13, due in part to adverse winter weather in North America. Underlying EBIT margins nearly doubled, driven by cost reductions, divestment of underperforming operations, and early stage benefits from asset optimisation strategies.

Underlying EBIT was $119 million in FY14, an increase of 77.1% over FY13.

In announcing the result, Group CEO Galdino Claro said, "The FY14 result is a positive improvement over last year in the face of still challenging market conditions. While I am encouraged by the progress we've made, much work still needs to be done."