Oct. 30 (Bloomberg) -- Sims Metal Management Ltd., the world’s biggest recycler of scrap metal, said first-quarter profit slumped 77 percent after sales declined in North America, Europe and Australia.

Net income was A$33.3 million ($31 million) for the three months ended Sept. 30, the Sydney-based company said today in a statement. That compared with A$145.1 million a year ago.

Sims swung to a loss in fiscal 2009 amid the global financial crisis. Demand has begun rebounding with prices for ferrous metals improving, Sims said in August.

“In our first quarter we noted sequential improvement in ferrous pricing coupled with improved scrap intake,” Chief Executive Officer Daniel Dienst said in the statement.

Sims declined 1.9 percent to A$19.82 at the 4:10 p.m. Sydney time close on the Australian stock exchange.

Mitsui Raw Materials holds a 19 percent stake in Sims. Sims agreed to buy Metal Management Inc. for $1.5 billion in September 2007.

To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net

Last Updated: October 30, 2009 01:20 EDT