The world's largest scrap recycler says its five year plan to more than quadruple earnings is on track after lifting half year profit by 53 per cent.
Sims Metal Management overcame falling commodity prices and metal volumes to lift underlying profit to $64.4 million in the six months to December 31, from $42.1 million a year earlier.
It will also deliver shareholders their largest dividend since 2011, paying 16 cents per share, fully franked.
Shares in the company surged by $1.13, or 10.6 per cent to $11.75.
Chief executive Galdino Claro said a five year turnaround strategy implemented in 2013 still had a way to go, but had so far proved promising given falling scrap metal prices and a 10 per cent-plus drop in sales volumes.
Sims was on track to lift full year earnings from $67 million in 2012/13 to $321 million in 2017/18, he said.
Sales of scrap metal used to make steel have been falling partly because iron ore price falls have made it cheaper for some steel mills to use iron ore.
"Market and industry conditions remain difficult," Mr Claro said.
"A steep drop in iron ore prices has challenged the competitiveness of our EAF (electric arc furnace) steel mill customers."
Sims achieved a jump in earnings in North America, from $10 million to $33 million, due to better margins and an improving economy, as car and appliance sales rose.
In contrast, earnings in Australia fell 24 per cent to $29 million, as the mining sector slowed and unemployment rose.
Sims' net profit, which in the previous year was heavily impacted by one-off items, rose sharply.
SIMS LIFTS PROFIT DESPITE WEAK SCRAP SALES
* Net profit of $74.5m, up from $9.3m in 2013/14
* Revenue of $3.4b, down 5.7 pct from $3.6b
* Interim dividend of 16 cents a share, up from no dividend
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