Sydney - Friday - October 24: (RWE Aust Business News) - Metal Recycling group CMA Corporation (ASX:CMV) has revised its profit guidance for the 2009 financial year based on the dramatic and unprecedented fall in commodities prices over the past 8-10 weeks. The impact of the global financial crisis has resulted in a massive slowdown in demand for scrap steel products and reduced the ability of buyers to open the required Letters of Credit. Based on the uncertainty and volatility in the market at present, CMA is unable to provide guidance on the company's financial performance for the first half of FY09, only to say that it is expected to be below last year's result. The company hopes to provide profit guidance for the half year at its AGM on 24 November. CMA Managing Director Mr. Doug Rowe said the recent market turmoil was unprecedented in its severity and the suddenness. "I have never seen such difficult conditions in a lifetime in this industry," said Mr Rowe. "The sudden drop in scrap steel prices has been deeper and more severe than anyone could have forecast. The speed with which it has happened is extraordinary." Mr Rowe said he expected the market to stabilise later in the financial year and is looking forward to a stronger second half.
CMV Price at posting:
9.3¢ Sentiment: Sell Disclosure: Not Held
