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CEO to retire form loss-making Sims

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AAP

February 22 2013, 09:05AM

Mr Dienst said he had mixed emotions about announcing his retirement as chief executive and as a director of the board.

"After nine years as chief executive officer, I believe now is the right time to bring the next leader into the organisation in an orderly succession process," he said in a statement.

An internal and global search will be conducted for a replacement, the company said.

Mr Dienst said economic fundamentals were improving in the company's key market of the United States, but scrap metal volumes had remained subdued during the six months to December.

That was compounded by weaker commodity prices and lower demand for metals, he said.

The company's Australian operations posted a fall in earnings, mainly because of asset sales and the cost of redundancies, Sims Metal said.

Metal market prices appeared to reach a floor in November, and had recently increased significantly, Mr Dienst said.

"We have now endured over four years of volatility and extremely challenging times in our markets," he said.

"We believe closing the books on the first half of fiscal 2013 is also a potential closing of the doors on this difficult chapter."

No interim dividend will be paid.