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Vale profit plunges on weaker currency, but says could ultimately benefit

Vale's (VALEQ2 profit plunged 84%, due in part to foreign exchange losses; Vale’s earnings have now dropped every quarter for the past two years.

Says its investment budget could ultimately benefit from a weaker Brazilian real, citing expansion of the Carajas iron ore mine in the Amazon; estimated capex through 2018 is $19.67B, but only $2.86B has been executed so far - "Such savings are not yet reflected in the expected capex for the approved projects under construction."

Produced 73.2M metric tons of iron ore and pellets vs. 80.5M a year earlier.

Shares -5.3% AH.

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Comments (2)
  • javkoza
    , contributor
    Comments (146) | Send Message
    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
    7 Aug 2013, 09:46 PM Reply Like
  • nemonemo
    , contributor
    Comments (334) | Send Message
    let them pump more coal and iron ore. like bhp, rio. they are screwing themselves like a never ending cycle.
    7 Aug 2013, 10:10 PM Reply Like
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