Sims Metal Managment (SGM) - FY15 result consistent with our expectations

The key takeaway from the SGM results was the resilient margin performance in the face of severe scrap market conditions. “Pull forward” sales systems helping to minimise open inventory risks. Highlights the leverage upside as volumes recover. Whilst not immune to current unprecedented scrap market events (China and Europe), we believe SGM is in good shape (with net cash) to navigate through. SGM remains a play to the US recovery. This, alongside SGM’s strategic plan, should ultimately drive share price performance. Read our full summary here: (VIEW LINK)