Sims Metal Management’s horror year continued with the company’s stock punished by investors after it flagged a $521 million full year loss.

The US-based company will report its earnings next week and Wednesday’s announcement is the latest bad news in a horror period involving nearly $600 million of writedowns, plunging earnings and a weak North American metals market.

The world’s largest scrap metal recycler said difficult operating conditions, particularly in North America, were squeezing margins.

The company’s share price closed down 76 cents, or 8.1 per cent, at $8.67, representing a 44 per cent fall in the past five months.

Sims Metal also said on Wednesday that it expected underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) before significant items to be $253 million for the year to June 30.

That compared to $431.7 million in EBITDA in the previous year, when margins and metal prices were higher.

It forecast the full year net loss of $521 million, after $594 million of non-cash goodwill after-tax impairments were recorded in the first half result.

“These conditions and certain significant items adversely impacted operating margins and equity accounted profits, particularly in June,” the company said in a statement.

The company’s operations have been battered in the past year by falling prices for many major metals it recycles, as Chinese steel mills drew down stocks amid concerns about Chinese growth and euro zone stability

Sims said revenue was predicted to be $9 billion compared to $8.9 billion last year.

Sims Metal reported a $556.5 million first-half loss in February, and a $192.1 million net profit for the previous financial year.

Sims Metal is also the world’s largest listed electronics recycler, and has about 270 facilities and 6,600 employees globally.