Sims Announces Fiscal 2009 First Quarter Result

CHICAGO & SYDNEY, Australia--(Business Wire)--
Sims Metal Management (ASX:SGM)(NYSE:SMS):

Highlights

-- Unaudited financial results

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-- Sales revenue of $3.5 billion up 169% on Q1 FY08
-- EBITDA of $285.1 million up 159% on Q1 FY08
-- EBIT of $249.2 million up 180% on Q1 FY08
-- NPAT of $145.1 million up 175% on Q1 FY08
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-- Balance sheet well positioned to deal with the challenges and
opportunities presented by the global credit crisis with net
debt representing 13% of total capital at quarter end

-- Determined a final dividend of 75 cents per share (comprising
an ordinary dividend of 65 cents per share and a special
dividend of 10 cents per share) payable on 27 October 2008

-- Metal Management business now fully integrated

-- North American strategy progresses with acquisitions of Silver
Dollar Recycling (through Sims' SA Recycling joint venture)
and Global Investment Recovery (through Sims Recycling
Solutions)

Financial Results to 30 September 2008

Sims Metal Management's Chief Executive Officer, Mr. Daniel W.
Dienst, announced today that the Company's unaudited NPAT (net profit
after tax) for the three months to 30 September 2008 was $145.1
million, up 175% on the prior corresponding period.

Unaudited EBITDA (earnings before interest, tax, depreciation and
amortisation) was up 159% on the prior corresponding period to $285.1
million. Unaudited sales revenue was up 169% on the prior
corresponding period to $3.5 billion.

The result includes a full contribution in the quarter from the
former Metal Management business, which merger happened post the prior
corresponding period.

Unaudited NPAT and unaudited EBITDA for the quarter ended 30
September 2008 were down 42% and 32% respectively on the quarter ended
30 June 2008.

Basic earnings per share for the quarter were 80 cents, compared
to 42 cents in the prior corresponding period, a more meaningful
comparison given the enlarged equity base resulting from the issue of
shares to former Metal Management stockholders on completion of the
merger.

Mr. Dienst stated: "Entering the second quarter, the global
economy has been adversely impacted by the crisis in the financial and
credit markets. For the steel and metal markets, what began as a
seasonal slowdown and overstocking environment has now been compounded
by a worldwide financial crisis perhaps without precedent in our
lifetime. The steel and manufacturing complex is experiencing the same
threat of illiquidity and demand paralysis as many industries around
the world. That being said, we believe that Sims Metal Management's
competitive position will be recognized in these challenging times by
our adherence to our prudent and disciplined operating strategy. Ours
is not a business built upon financial engineering and we will use our
platform, visibility and ample liquidity to manage through these
difficult markets. It is a hallmark of Sims Metal Management that we
will adapt to business environments - robust or challenging - to
deliver the optimum level of performance possible under such
conditions."

North America

For the quarter, unaudited sales revenue was $2.7 billion and
unaudited EBIT (earnings before interest and tax) (pre-corporate
costs) was $248.3 million (including Sims Recycling Solutions). As the
Metal Management merger was completed in the third quarter of the 2008
fiscal year, comparisons with the prior corresponding period are not
relevant. Excluding the contribution from the former Metal Management
business, however, unaudited EBIT was up 166%.

Sales tonnes during the quarter were 3.3 million.

Mr. Dienst said: "Despite the precipitous decline of commodity
prices during the quarter, the North American business put up a strong
performance. In addition to the completion of the Metal Management
business integration, highlights were the metal recycling acquisitions
completed in North America during the quarter. SA Recycling - a joint
venture between Sims and Adams Steel operating in Southern California,
Arizona and Nevada - acquired a 70% interest in Silver Dollar
Recycling, the leading metal recycler in Las Vegas, operating the only
shredding facility in that city. Sims Metal Management also purchased
the assets of Weinert Recycling, a ferrous and non ferrous scrap metal
recycler with operations in Middletown and Liberty, New York.

Mr. Dienst added: "The United States, as the origin of the
financial contagion, is certainly not immune from the woes of the
global financial crisis and current challenging global business
climate. Customers and consumers alike are adjusting their values and
levels of raw materials and finished goods inventories against the
backdrop of uncertain demand and production prospects."

Other Regions

Unaudited sales revenue for the combined Australian, Asian and
European regions was up 29% to $848.6 million on the prior
corresponding period. Unaudited EBIT (pre-corporate costs) was $14.6
million, down 68% on the prior corresponding period.

Sales tonnes for the combined regions during the quarter were
approximately 872,000.

Mr. Jeremy Sutcliffe, Executive Director, said: "Our Australian
and New Zealand operations delivered a solid result for the quarter,
which was in line with the prior corresponding period. The performance
of our European metal recycling operation was, however, adversely
affected by inventory value adjustments which resulted in an EBIT loss
for the quarter.

"Sims Recycling Solutions ("SRS") made positive contributions in
both Europe and North America and the SRS business strategy remains on
track.

"The SRS business continued to expand in North America with the
acquisition of Global Investment Recovery Inc., a leading US e-scrap
recycler and asset recovery specialist based in Tampa, Florida,
announced on 7 October 2008. The acquisition will increase our North
American electronics recycling and asset recovery market presence by
approximately 40%, consolidating our market leading position."

Markets & Outlook

Trading conditions in both ferrous and non ferrous markets remain
extremely difficult and short term trends in those markets are equally
difficult to predict. Consequently, margins and volumes are likely to
be significantly affected in the second quarter. Despite the recording
of significant inventory write-downs of approximately $70 million in
consideration of lower of cost or market assessments made in the first
fiscal quarter just ended, additional provisions could be required
should consumers and/or counterparties fail to perform on sales
contracts. Accordingly, it is not possible to provide guidance on the
Company's second quarter performance at this time. At the Company's
2008 Annual General Meeting to be held in Sydney on 21 November 2008
and if visibility is available, an update on the market and the
outlook will be provided. The rapid and significant reduction of ocean
freight rates and the depreciation of the Australian dollar against
the US dollar and the British pound should, however, have a positive
impact.

Mr Dienst concluded: "As we have said on many occasions, Sims
Metal Management's competitive advantage is its extraordinary people.
Coupled with a strong balance sheet, unrivalled geographic reach and
product diversity, we are optimistic that we will execute on our goal
of capitalizing on market opportunities when they present themselves
and emerging from this adverse point in the cycle stronger than when
we entered it."

Cautionary Statements Regarding Forward-Looking Information

This release may contain forward-looking statements, including
statements about Sims' financial condition, results of operations,
earnings outlook and prospects. Forward-looking statements are
typically identified by words such as "plan," "believe," "expect,"
"anticipate," "intend," "outlook," "estimate," "forecast," "project"
and other similar words and expressions.

These forward-looking statements involve certain risks and
uncertainties. Our ability to predict results or the actual effects of
our plans and strategies is subject to inherent uncertainty. Factors
that may cause actual results or earnings to differ materially from
these forward-looking statements include those discussed and
identified in filings we make with the Australian Securities Exchange
and the United States Securities and Exchange Commission, including
the risk factors described in the Registration Statement on Form F-4
we filed with the United States Securities and Exchange Commission on
8 February 2008.

Because these forward-looking statements are subject to
assumptions and uncertainties, actual results may differ materially
from those expressed or implied by these forward-looking statements.
You are cautioned not to place undue reliance on these statements,
which speak only as of the date of this release.

All subsequent written and oral forward-looking statements
concerning the matters addressed in this release and attributable to
us or any person acting on our behalf are expressly qualified in their
entirety by the cautionary statements contained or referred to in this
release. Except to the extent required by applicable law or
regulation, we undertake no obligation to update these forward-looking
statements to reflect events or circumstances after the date of this
release.

All references to currencies reflect measures in Australian
dollars.

About Sims Metal Management

Sims Metal Management (www.simsmm.com) is the world's largest
listed metal recycler with over 230 operations globally. Sims' core
businesses are metal recycling and recycling solutions. Sims earns
around 80 per cent of its revenue from international operations in
North America, the United Kingdom, Continental Europe, New Zealand and
Asia. Sims has over 6,000 employees, an annualised turnover of over
$10 billion in fiscal 2008 on a pro forma basis and has its ordinary
shares listed on the Australian Stock Exchange (ASX CODE: SGM) and its
ADRs listed on the New York Stock Exchange (NYSE SYMBOL: SMS).

Sims Metal Management
For further information contact in North America
Dan Dienst
Group Chief Executive
Tel: 212 750 7189
or
Rob Larry
Chief Financial Officer
Tel: 312 644 8205
or
For further information contact in Australia
Jeremy Sutcliffe
Chairman, Europe & Australia
Executive Director
Tel: 02 9956 9100
or
Stuart Nelson
Director, Corporate Services
Tel: 02 9956 9100

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