ASX-listed Sims becomes top loser in benchmark index on cloudy outlook

Sims

08/11/2022 24:38

** Shares of ASX-listed metals and electronics recycling
firm Sims Ltd  SGM.AX  drop as much as 14.2% to A$10.97, their
worst intraday pct drop since Oct 28, 2019
    ** Sims becomes top loser in benchmark Australian stock
index  .AXJO  
    ** Sims expects underlying EBIT for H1 FY23 to be between
A$65 mln and A$75 mln ($42.09 mln to $48.57 mln); firm had
reported H1 FY22 underlying EBIT of A$361.7 mln 
    ** Lower scrap volumes from reduced economic activity,
coupled with increased competition for available infeed have
tightening trading margins, Sims says 
    ** Expects sustaining capital expenditure for FY23 to be
A$170 mln, lower than the previous forecast of A$220 mln 
    ** Stock hits lowest level since Dec 1, 2020
    ** SGM stock down 20.4% YTD, as of last close 
    ($1 = 1.5442 Australian dollars)
 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))