[R]11:00AM Sydney - Sims Group Limited posts $102.2 million in net profit, a decline of 9.5% from a year ago.[/R]

The world''s biggest recycler of scrap metal, Sims Group Limited Group chief executive, Jeremy Sutcliffe, today announced a net profit after tax for the half year ended 31 December 2007 of $102.2 million.

Sales revenue increased 4% to $2.73 billion on the first half of the 2007 financial year. Earnings before interest, tax, depreciation and amortization were 3.6% lower at $211.3 million from the year ago. Net profit after tax was lower at 9.5% from a year ago to $102.2 million and earnings per share declined 10.5% to 81.1 cents.

Sales in tonnage declined 0.7% to 4.7 million tons from a year ago.

North American revenues, 52% of total revenues, rose 12.6% in the first half of fiscal 2008 but in Australian dollar were flat. European revenue, 28% of total revenues, rose 15.6% from a year ago but rose 7% in Australian dollars.

Sutcliffe was upbeat that earnings for this quarter could surpass those for the first two quarters after a surge in scrap metal prices. Sims fell 0.3%.