Australia's Sims hikes forecast as non-ferrous boosts North America businesses (updated)
UPDATE 1-Australia's Sims hikes forecast as non-ferrous boosts North America businesses Adds details throughout
June 17 (Reuters) - Metal recycler Sims SGM.AX on Wednesday raised its annual underlying operating earnings forecast, citing strength across non-ferrous markets and improved trading conditions for ferrous metals.
Sims expects earnings from its North American Metal businesses to increase in the second half of the year, driven by strong performances across Sims North America Metals and its joint venture unit, SA Recycling.
The company now sees underlying earnings before interest and taxes (EBIT) for 2026 between A$420 million ($296.73 million) and A$435 million, compared with its previous forecast range of A$350 million to A$400 million.
Sims also expects underlying EBIT for Sims Lifecycle Services to be in range of A$170 million to A$175 million for the year, driven by structural growth trends underpinning the global data centre ecosystem.
The company, however, flagged that ferrous market conditions in Australia and New Zealand remain subdued due to elevated Chinese steel exports.
($1 = 1.4154 Australian dollars)
(Reporting by Nichiket Sunil in Bengaluru; Editing by Leroy Leo)
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