Sims Metal Management sees sudden executive departures

Australia- and New York-based scrap recycling firm Sims Metal Management has a new CEO and a new acting chief financial officer (CFO), following what media reports are calling the sudden departure of the two people formerly holding those posts.

An online article posted by The Australian says former Sims CEO Galdino Claro and CFO Fred Knechtel departed suddenly in early August, as announced in a company statement that “gave no detailed explanation behind the exit and did not say whether the pair had resigned or been [asked to leave].”

The value of shares in the publicly traded company fell by about 12 percent in early August, says The Australian, “even as the company released earnings guidance that appeared to come in ahead of analyst expectations.”

Claro was appointed in November 2013, and Knechtel had been the CFO since November 2014.

A Citibank analyst quoted by The Australian remarks that “the timing and lack of clarity around the reasons for the management departure is of concern to us” and that the appointment of an acting CFO (rather than a permanent one), created an “unhelpful impression of a rather hurried exit.”

As of Aug. 10, 2017, the company’s website lists Alistair Field as its CEO and managing director and Amit Patel as acting group chief financial officer. Field had previously been managing director of Australia and New Zealand Metals for the company, while Patel had been group chief accounting officer.

In the statement released by Sims Metal Management, the company’s board Chairman Geoff Brunsdon comments, “I would like to acknowledge the contribution Galdino has made through his leadership over the past four years to the development and implementation of the transformation strategy. Under his leadership, the company has made substantial progress.”

Continues Brunsdon, “With our five-year strategic plan nearing completion, I am excited to have Alistair leading the company through the next phase of its development, with the business being well-placed to leverage its strengthened market position. The board and I are very confident in the outlook under Alistair's leadership.”

The news release also announced John Glyde as the successor to Field in the role of managing director of Australia and New Zealand Metals.

Sims Metal Management bills itself as one of the world’s largest metal recyclers, with more than 200 facilities, operations in 20 countries and more than 4,500 employees globally. Sims says its core businesses are metal recycling and electronics recycling, with about 50 percent of its revenue stemming from operations in North America.