One of the world's largest scrap metal recyclers, SIMS Metal Management has posted disappointing first quarter net profit figures and reported a 77% drop. Much lower sales than expected and a weak market have been blamed by the company for the reported loss.

According to the figures posted, SIMS's first quarter income took an almost 68% plunge to stand at $92.3 Million, significantly less than last year's figure of $285.1 Million. Overall fiscal year earnings, on the other hand, fell by a whopping 79% from last year's $249.2 Million to $53.6 Million.

Despite the figures, the company is positive that it will do better in the coming times. Chief Executive Dan Dienst shared that, "(While) conditions had improved in its first quarter for both ferrous and nonferrous metals, but in the early part of this quarter, ferrous markets had weakened, while nonferrous markets remained firm". Also, he said that the company was expecting some tough times ahead "as the economies around the world find their footing". Hopes for a positive future have been made nonetheless.

Amidst the falling profits, the Sydney based company is looking to pursue as many growth opportunities as possible, like its recent acquisitions of Fairless Iron & Metal and Technorecycle. The company is looking to put at rest any concerns that the investors might have at its Annual Investor Meeting on November 20.