The new head of global recycler Sims Metal Management says conditions in metals markets are still tough three months on from the company posting a $466 million annual loss.
Just over a week since taking the role of chief executive, Galdino Claro told the company's annual general meeting that activity at the world's largest recycling company in the first four months of the current financial year had been mixed.
A sluggish north American economy has hurt the company's earnings from scrap metal in the last two years, and caused writedowns that contributed to massive losses.
Mr Claro said north American market conditions remained challenging due to weak scrap generation and intense competition for raw materials.
Earnings in Australasia were higher in the year so far, while restructuring of the UK operations had brought improved results, he said.
"Despite our expectations for firm ferrous scrap prices near-term, we believe it is unlikely these higher prices will translate into meaningfully improved margins due to intense competition for unprocessed raw materials in North America," Mr Claro said.
The restructure in the UK followed an overstatement of the value of inventories.
An internal investigation found that a "breakdown in internal controls" had only occurred at two facilities, chairman Geoff Brunsdon said on Thursday.
Various short and long term bonus schemes, stock options and termination benefits that form part of Mr Claro's salary were approved by shareholders.
Sims Metal shares were up 10 cents at $10.12 at 1457 AEDT.
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