Dive summary:
- As a part of on going changes, Sims Metal Management in the U.K. has decided to landfill some of its lower-value inventory.
- After an investigation into how the company became overvalued by approximately $78 million Australian dollars ($79.4 million US), Sims officials said they would to “rebase and enhance the commercial profile of the business.”
- In addition to tossing lower value materials, Sims say they also plan on marketing slow-moving inventories more quickly.
From the article:
Inventory write-downs and landfill costs are estimated to have an impact of AU$45 million Australian dollars ($45.8 million) on the second half of the company's fiscal year 2013. Sims Metal Management already took a AU$16 million hit ($16.3 million) connected to inventory write-downs for the half-year ending Dec. 31 and restated previous results to reflect the changes.
The company said it also expects cash flow of certain fixed assets to be less than their carrying value, for a total impact of around AU$115 million ($117.1 million) for the second half of fiscal 2013. ...
