Glencore Xstrata's underlying profit rises

|About: Glencore Plc ADR (GLNCY)|By:, SA News Editor

Glencore Xstrata's (GLNCY) FY adjusted EBIT climbed 34% to $5.97B, boosted by the inclusion of eight months of Xstrata's profits and a strong performance at the company's commodities trading operations.

Adjusted net income rose 20% to $3.67B but missed consensus of $3.81B.

However, Glencore Xstrata swung to an overall net loss of $7.4B from a net profit of $1B in 2012, due to a $7.5B writedown that the company booked on the Xstrata deal. Still, the firm expects to achieve $2.4B of annual synergies from the purchase, up from a prior forecast of $2B.

Glencore Xstrata is continuing its talks with a Chinese suitor to sell its $5.9B Las Bambas copper asset in Peru. A group led by China Minmetals was reportedly close to a deal last month.

Glencore Xstrata is selling the asset in order to meet Chinese conditions for approving the Xstrata transaction.

Glencore increased its full-year dividend 4.8% to 16.5 cents a share.

Shares are +2.4% in London. (PR)