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Company Information

Company at a Glance

Industry:
Metals & Mining
Fiscal Year-End:
n/a NaN

Company Overview

SIMS Metal Management Limited (SGM, formerly Simsmetal Ltd and Sims Group Ltd) recycles ferrous and nonferrous metals and a variety of other materials ranging from other metals to plastics, electronics, tyres and refrigerators. The company has operations in Australia, New Zealand, North America, Asia and Europe.

Company History

Albert Sims set up Simsmetal (SGM) in 1917 as a Sydney-based metals recycling business. It went public in 1948 and subsequently developed into a substantial business. SGM became part of Peko Wallsend from 1979-1989 when it was sold to Elders Resources NZFP. It was floated in 1991 and in 1992, SGM entered into an agreement with ICI Australia to develop commercial recycling of plastic automotive components. SGM merged Hugo Neu in late-2005 and Metal Management in early-2008.

Industries Of Operation

SGM operates in scrap metal and plastics recovery and processing in Australia, NZ, the US and the UK. More recently, the company has sought to take advantage of end-of-product life requirements being introduced to reduce waste, particularly in Europe. SGM also has a strategic stake in landfill gas extractor and energy company, Landfill Management Services (LMS).

Differentiating Factor

The key factors that differentiate SGM are its scale and the range of markets in which the company operates. Over recent years, the company has undertaken an expansion program and acquired businesses in the US and the UK markets. SGM has also steadily built its presence in the non-ferrous recycling market segments. As a result of its organic and acquisition growth strategies, SGM is now one of the larger recycling operators in the world.

Major Customers & Competitors

SGM's major clients are steel producers. Scrap is supplied to producers in Australia, the US, Asia and Europe. SGM also operates in other metals markets, including copper, aluminium and lead. There are also a number of smaller operators. In the United Kingdom, SGM is one of two major operators. The Metal Management merger has delivered a huge boost to SGM's US arm, making SGM the market leader.

Research provided by  

Market Statistics

Market Cap ($M):
3,629.3
Equiv. Shares (M):
203.9
% All Ords:
0.28
12Mth Range ($):
15.72 - 28.18
Turnover ($M pa):
3,878.6
Index:
S&P/ASX 100
Sector:
Materials
Industry Group:
Materials
Industry:
Metals & Mining
Sub Industry:
Steel

Last 5 Market Sensitive Announcements

Date
Announcment
06-May-10 08:10
Fiscal 10 Q3 Results
26-Feb-10 16:09
Response to ASX Aware Letter - Half Yearly Report
18-Feb-10 08:15
Half Yearly Report and Accounts
21-Dec-09 10:20
MHM: Processing Agreement with Alcoa
15-Dec-09 08:59
MHM: Aluminium Project Acquisition

Calendar Of Events

Date
Event
09-Apr-10
Dividend Date Payable for Half Yearly Result (10c 100% franked)
19-Mar-10
Dividend Record Date for Half Yearly Result (10c 100% franked)
15-Mar-10
Dividend Ex-Dividend Date for Half Yearly Result (10c 100% franked)
18-Feb-10
Reporting Date for Half Yearly Result
26-Oct-09
Dividend Date Payable for Final Year Result (10c 100% franked)

Directors

Name
Position
P K Mazoudier
Chairman
J M Feeney
Director
P Varello
Director
M Iwanaga
Non-Executive Director
C Renwick
Non-Executive Director
R LEWON
Non-Executive Director
N R BOBINS
Non-Executive Director
G E MORRIS
Non-Executive Director
D W DIENST
Executive Director
J Thompson
Director
G Brunsdon
Director
M Sukagawa
Director

Management

Name
Position
J Sutcliffe
CEO/MD
R B Cunningham
Finance Director
F Moratti
Secretary/Legal Counsel

Substantial Shareholders

Name
% Holding
Votraint
20.0
Mitsui/MOECO
19.2
M&G Investment Funds
11.0
M&G Group
10.1
BMG Finance Pty Ltd
9.6
Legg Mason Asset Management Australia
6.4
Challenger Financial Services
5.5

Consensus Recommendation Summary


0
0
5
2
6
Sell Under Perf. Hold Out Perf. Buy

Number of Brokers in Recommendation Summary: 13

Consensus Earnings

FY10 FY11
Consensus EPS1 (c) 60.1 126.1
EPS Growth (%)   110.0
P/E Ratio (x) 29.6 14.1
P/E Rel. All Ords (x) 2.65 n/a
P/E Rel. Sector (x) n/a n/a
Number of Brokers in Earnings Survey: 13 13

1. Consensus EPS is generally "reported EPS" but will vary as to whether it is on a pre or post preference earnings basis. This number is not always on the same basis as the Aegis EPS.

Historical Forecast Earnings And Recommendations

Consensus Recommendations

Consensus information provided by Reuters.

Consensus EPS Forecasts 1

1. Consensus EPS is generally "reported EPS" but will vary as to whether it is on a pre or post preference earnings basis. This number is not always on the same basis as the Aegis EPS.

Peer Recommendation Comparison

  P/E (x) EPS Chg (%) Dividend Yield (%) MktCap ($M) Price ($) Consensus Rec
  09A 09A 09A    
Sims Metal Management >99 (92.8) 1.4 3,629.3 17.80 Out Perf.
James Hardie Industries 9.2 42.7 0.0 2,834.7 6.51 Out Perf.
Boral 18.4 (46.7) 3.2 2,829.3 4.24 Hold
Adelaide Brighton 13.5 1.5 4.9 2,013.4 3.17 Out Perf.
Brickworks 15.5 2.8 3.0 1,738.9 11.81 Buy

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