Sims Earnings Exceeded Consensus More Than 10 to 15%

By Madelene Pearson

Aug. 20 (Bloomberg) -- Sims Group Ltd., the world's biggest recycler of scrap metal, said full-year earnings exceeded analyst estimates by more than 10 to 15 percent after a favorable June trading performance and a one-time gain.

Net profit after tax exceeded consensus earnings estimates of A$364 million ($317 million) in the year ended June 30, Sydney- based Sims said today in a statement. The company had net profit a year earlier of A$254.4 million.

It's the second time Sims, scheduled to release its audited full-year financial results on Aug. 29, has said profit would be higher than expected. The company said June 18 full-year earnings would beat analyst estimates of A$314 million at that time by as much as 15 percent.

Profit after tax will be boosted by a one-time gain of A$32 million, Sims said in a statement to the Australian stock exchange.

Sims rose as much as 2.5 percent to A$31.35 on the exchange and traded at A$30.66 at 11:12 a.m. in Sydney. The stock has gained 14 percent this year, compared with the 23 percent slide in the Australian benchmark index.

To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net