Sims shares plunge 15% on 1H FY20 downgrade
Sims Metal Management (ASX:SGM) has today announced that the recent and significant falls in ferrous and non-ferrous prices will negatively impact 1H FY20 and the result will be materially lower than 1H FY19.
Alistair Field, CEO and Managing Director says the escalating trade wars that were discussed at the year-end results continue to reduce the demand for steel and aluminium. This reduction in demand for scrap has driven a steep fall in prices.
Automobile sales also continue to fall and this is impacting the demand for twitch, with an accompanying fall in price.
Sims says it expects a recovery over the medium term.
Shares in Sims Metal Management (ASX:SGM) are trading 14.88 per cent lower to $10.70.
Copyright 2019 – Finance News Network
Source: Finance News Network
