BHP Q3 Output Falls Short of Expectations

Anglo-Australian miner BHP Billiton reported quarterly production results Tuesday that fell short of analyst expectations as maintenance disruptions cut into its mining output. BHP said the disruptions will likely continue in coming quarters, which may prompt analysts to lower their earnings forecasts. Iron-ore production was up 7% to a record 25.87 million tons, falling short of UBS forecasts. "I was sort of hoping to see things pick up a little more than they had," UBS analyst Glyn Lawcock said. Rival iron ore producer Rio Tinto said last week its iron ore production fell 2% from the previous quarter. Copper production fell 10% q/q due to a smelter shutdown, but was up 23% y/y. Nickel output was down 19% q/q due to maintenance interruptions and fell 13% y/y. "It was on the softer side of expectations, we're talking 1% or 2% change to earnings, which is not really material," Lawcock said. BHP shares rose 0.2% Tuesday in Australia to A$46.

Sources: Press release (.pdf), MarketWatch, IHT
Commentary: Iron Ore Prices Seen Rising 30% in 2008 • Commodities' Golden Future • BHP Billiton: Good Looking Stock With Great Ore
Stocks to watch: BHP, BBL. Competitors: RTP, AA, AAUK. ETFs: ADRA

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