Seeking Alpha

Vale EPS of $0.08

  • Vale (VALE): Q2 EPS of $0.08 may not be comparable to consensus of $0.34.
  • Revenue of $11.3B misses by $0.02B.
  • Shares -1.4% AH. (PR)
Comments (2)
  • holdenmijunk
    , contributor
    Comment (1) | Send Message
     
    Rio de Janeiro, August 07, 2013 – Vale S.A. (Vale) had a solid financial performance in the second quarter of 2013 (2Q13) amidst an environment of below-trend global economic growth and declining minerals and metals prices. Operating revenues were US$ 11.3 billion, operating income, as measured by adjusted EBIT, reached US$ 3.6 billion, adjusted EBITDA US$ 5.0 billion, and underlying earnings US$ 3.3 billion, US$ 0.64 per share.
    Copper, gold and coal production achieved all-time high figures, at 91,300 t1, 63,000 oz and 2.4 Mt, respectively, while nickel output remained at 65,000 t, its best second quarter since 2Q08. Salobo is ramping up successfully, beginning to generate cash in June.
    We are executing our business plan, which provides exposure to a large world-class natural resource base and multiple opportunities for shareholder value creation, underpinned by a greater focus on cost and capital management discipline, financial strength and an efficient logistics infrastructure. In this context, we are concluding important base metals projects, such as Salobo II copper, executing some world-class bulk materials projects, such as Carajás S11D iron ore and Moatize II coal, expanding the logistics network – Teluk Rubiah, CLNS 11D and the Nacala Corridor – to support our global operations. Simultaneously, we are divesting non-core assets, cutting research and development (R&D) expenditures, operating costs and corporate expenses and maintaining a strong balance sheet.
    We have continued to deliver on our promises. The several initiatives under way are producing sequential improvements: total costs and expenses2 fell by US$ 736 million in 2Q13 versus 2Q12, accumulating a reduction of US$ 1.6 billion in the first half of 2013 (1H13) compared to 1H12 – driven by decreases in costs by US$ 845 million (8%), sales, general and administrative (SG&A) expenses by US$ 435 million (42%) and R&D by US$ 324 million (49%)3.
    Supported by the cost cutting efforts, adjusted EBITDA remained steady at US$ 10.2 billion in the first half of this year, declining only US$ 304 million on a year-on-year basis, notwithstanding the US$ 2.1 billion fall in revenues determined mostly by price decreases.
    We are strongly committed to persist in our relentless efforts to pursue a cost structure consistent with continuous value creation through the cycles. In addition to our own efforts, the cost performance of 2Q13 was reached with an average Brazilian real (BRL) / US dollar (USD) exchange rate of 2.07 in 2Q13, thus highlighting potential opportunities for further savings, given that the BRL/USD stood at 2.23 at the end of 2Q13.
    8 Aug 2013, 02:57 AM Reply Like
  • javkoza
    , contributor
    Comments (111) | Send Message
     
    Read the report and publish a correction:
    Rio de Janeiro, August 07, 2013 – Vale S.A. (V
    ale) had a solid financial performance in the
    second quarter of 2013 (2Q13) amidst an
    environment of below-trend global economic
    growth and declining minerals and metals prices. Operating revenues were US$ 11.3
    billion, operating income, as measured by adjusted EBIT, reached US$ 3.6 billion,
    adjusted EBITDA US$ 5.0 billion, and underlyi
    ng earnings US$ 3.3 billion, US$ 0.64 per
    share.
    8 Aug 2013, 08:39 AM Reply Like
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