real-time news and commentary for investors
Tuesday, Aug 20
GlencoreXstrata core profit drops 9%; takes $7.6B writedown
- GlencoreXstrata (GLCNF.PK) H1 Pro forma Adjusted EBITDA -9% to $6B, at the higher end of estimates.
- Adjusted EBIT -28% to $3.18B,
- Revenue -2% to $121.4B
- Reported adjusted EBITDA +14% to $3.64B
- Revenue +4% to 112.48B
- Profit before significant items -34% to $1.21B.
- Loss $8.92B vs profit of $2.275B
- Loss per share $0.99 vs EPS of $0.33
- As expected, takes goodwill impairment of $7.6B related to Xstrata acquisition, reflecting the negative mining-industry environment and the heightened risks of greenfield and large scale expansion.
- Declares interim dividend of $0.054 a share, in line with 2012.
- Progress made in integrating Xstrata "has exceeded our expectations," and synergies will "be materially in excess of previous guidance of $500M per annum." (PR)