Sims Metal Management Announces First Quarter Results

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

Highlights (Unaudited and in Australian Dollars)

* Sales revenue of $1.8 billion
* EBITDA of $92.3 million
* EBIT of $53.6 million
* Net profit after taxes of $33.3 million
* Basic earnings per share of 18.3 cents
* Scrap intake increased 28 percent sequentially in Q1 from Q4 of fiscal 2009
* Dividend for the second half of fiscal 2009 of 10 cents per share paid
* Completed acquisitions of Fairless Iron & Metal and Technorecycle GmbH

Financial Results for the Three Months Ended 30 September 2009

In the first three months of fiscal 2010, Sims Metal Management (the "Company")
had sales revenue of $1.8 billion, down 49 percent on Q1 of fiscal 2009, and
earned a net profit after tax of $33.3 million, down 77 percent. EBITDA
(earnings before interest, tax, depreciation and amortisation) was $92.3
million, down 68 percent, and EBIT (earnings before interest and tax) was $53.6
million, down 79 percent. The Company also recorded atypical charges related to
redundancies of $5.2 million in the first fiscal quarter. EBITDA for the quarter
before these atypical charges was $97.5 million. Basic earnings per share was
18.3 cents, down 77 percent on Q1 of fiscal 2009.

Group Chief Executive Officer Daniel W. Dienst stated, "In our first quarter we
noted sequential improvement in ferrous pricing coupled with improved scrap
intake, particularly as we re-asserted ourselves in the marketplace for
unprocessed scrap. Non-ferrous markets were relatively firm and our Sims
Recycling Solutions business executed well."

Sims Metal Management purchased 3.6 million tonnes and shipped 3.5 million
tonnes of scrap metal in the first quarter of fiscal 2010 compared to 4.2
million tonnes purchased and 4.2 million tonnes shipped in the prior
corresponding period. Scrap intake and shipments increased 28 percent and 16
percent, respectively, in the first quarter of fiscal 2010 as compared to the
fourth quarter of fiscal 2009.

Mr. Dienst continued, "We achieved significantly improved results in our first
quarter due to the benefits from cost-cutting initiatives undertaken in fiscal
2009, a steadier pricing environment and a return to more normalised trading
conditions. While profitable, we note continued margin pressures as
industrialised, scrap-generating economies of the world suffer from an economic
downturn that has diminished intake, placing upward pressure on buy prices. As
the economic crisis abates, we will nonetheless remain focused on those factors
within our control, including managing operating expenses, scrap costs,
inventory turnover and, of course, the safety and well-being of our 5,500
employees across the globe."

North America

Sales revenue for the quarter was down 55 percent on the prior corresponding
three month period to $1.2 billion. On a U.S. dollar equivalent basis, sales
revenue was down 56 percent on the prior corresponding three month period to
US$1.0 billion. EBIT was $27.2 million. Tonnes shipped during the first fiscal
quarter ended 30 September 2009 were 2.6 million.

Mr. Dienst continued, "During our first quarter, scrap intake in North America
increased by 32 percent to 2.8 million tonnes over the fourth fiscal quarter of
2009. We have maintained tight controls over buy prices and inventory levels and
aggressively reduced our operating expenses. On a U.S. dollar equivalent basis,
our operating expenses in North America declined by approximately 23 percent
during our first quarter as compared to the prior corresponding period. We are
proud of this result, which reflects expense reduction initiatives that were
implemented to offset margin compression and to better align our resources with
lower scrap flows in North America."

"We are pleased with our improved performance in North America, but our
expectations for this region are for still better margins and higher returns on
capital, which we would expect to see as and when the U.S. economy returns to
its growth potential," Mr. Dienst added.

Australasia

Sales revenue was down 32 percent to $301.3 million on the prior corresponding
three month period. EBIT was $14.7 million. Scrap intake increased by 18 percent
in Australasia from the fourth quarter of fiscal 2009. Operating expenses in
Australasia declined by 17 percent as compared to the prior corresponding
period.

Mr. Dienst said, "Our Australian and New Zealand operations realised increased
scrap intakes and solid margins. During the quarter we reopened a site in South
Australia as we expand organically. The region performed well and continues to
show true leadership in its market."

Europe

Sales revenue was down 32 percent on the prior corresponding three month period
to $277 million. EBIT was $11.7 million. A significant portion of the profit
earned in Europe during the first fiscal quarter was attributable to the strong
performance of the Sims Recycling Solutions ("SRS") business. Scrap intake
increased in Europe by 14 percent when compared to the fourth quarter of fiscal
2009. Operating expenses in Europe declined by 9 percent in the first quarter in
local currency equivalents over the prior corresponding period.

Mr. Dienst said, "Our traditional metal recycling business in Europe continues
to encounter difficult market conditions, as economic recovery in the E.U. is
uneven. The division remains focused on capital improvement initiatives that
will position us favorably as and when scrap markets recover. We are especially
pleased with the significant progress of SRS in Europe and we are excited by the
future prospects of the Technorecycle acquisition in Germany."

Capitalisation

As of 30 September 2009, the Company had net debt balances of approximately $290
million, representing approximately 10 percent of total capital.

Mr. Dienst stated, "Our balance sheet enables us to continue to pursue value
creating technology investments and growth opportunities in these difficult
times, as evidenced by our two recently completed acquisitions. We will continue
to evaluate investment opportunities which will position the Company to emerge
from this economic cycle stronger than we entered it. As always, we will be
prudent and disciplined in deploying shareholder capital to further enhance the
Company`s long-term prospects."

Markets & Outlook

Global trading conditions have improved through our first fiscal quarter for
both ferrous and non-ferrous commodities. At this early part of the second
fiscal quarter, ferrous markets have weakened while non-ferrous markets remain
firm. As the economies around the world find their footing, the Company expects
volatility and a continued challenging operating environment in its second
fiscal quarter, which is traditionally slower due to the Northern Hemisphere
winter and the holiday periods.

Mr. Dienst concluded, "While we are pleased to have returned to profitability in
our first fiscal quarter, rapidly changing market conditions make it difficult
to provide further guidance. We may provide additional guidance at our Annual
General Meeting in Sydney on 20 November 2009 should visibility so allow."

Cautionary Statements Regarding Forward-Looking Information

This release may contain forward-looking statements, including statements about
Sims Metal Management`s 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 ("SEC"),
including the risk factors described in the company`s Annual Report on Form
20-F, which we filed with the SEC on 10 December 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, unless otherwise stated, reflect measures in
Australian dollars.

About Sims Metal Management

Sims Metal Management (www.simsmm.com) is the world`s largest listed metal
recycler with approximately 230 facilities and 5,500 employees globally. Sims`
core businesses are metal recycling and recycling solutions. Sims earns
approximately 90 per cent of its revenue from operations in North America, the
United Kingdom, Continental Europe, New Zealand and Asia. The Company`s ordinary
shares are listed on the Australian Securities Exchange (ASX: SGM) and its ADRs
are listed on the New York Stock Exchange (NYSE: SMS).

Sims Metal Management
Dan Dienst
Group Chief Executive Officer
Tel: +1 212 500 7410
or
Rob Larry
Group Chief Financial Officer
Tel: +1 312 644 8205

Copyright Business Wire 2009