Thu, Feb. 26, 8:59 AM
- Vale (NYSE:VALE) -2.6% premarket after posting below consensus Q4 earnings, as iron ore prices fell by nearly half and the Brazilian currency weakened vs. the dollar.
- Vale reported a Q4 loss of $1.85B, far worse than analyst expectations for a $740M loss, which impacted lower than expected FY 2014 net income of $657M; Vale wrote off almost $2B in fertilizer, iron ore, coal and nickel assets during the quarter, including a $1.05B charge on the fertilizer business in Brazil.
- Q4 EBITDA tumbled by two-thirds to $2.19B and fell 41% for the full year to $13.35B, the lowest figure since the 2009 global recession.
- Strength in Vale's base metals division helped to cushion the fall in iron ore prices, with EBITDA up 54% to $2.52B; Vale became the world's largest producer of nickel in 2014.
- Because cash generation has not been enough to cover Vale's $4.2B in dividend payments and $11.98B in capital spending, the company has been seeking to cut costs, find partners and sell assets, which CFO Luciano Siani says will intensify moving forward.
Thu, Feb. 26, 6:46 AM
Oct. 30, 2014, 9:32 AM
Oct. 30, 2014, 7:59 AM
- Vale (NYSE:VALE) -6% premarket after reporting a surprising Q3 net loss due a sharp depreciation in the Brazilian real and the lowest iron ore prices since 2010.
- Vale posted a $1.44B Q3 loss from a net profit of $3.5B a year earlier and analyst consensus expectations for a $1.49B net profit, hit by $2.68B in foreign exchange and monetary losses on debt and derivatives; EBITDA fell 48% Y/Y to $3B.
- Vale’s average sales price for iron ore plunged 36% Y/Y to $68.02/ton from $109.93.
- Produced a record 85.7M metric tons of iron ore but inventories rose by 9.3M tons, as protests that closed its main railroad in northern Brazil contributed to stockpiles.
- Since ferrous metals, mostly iron ore, account for nearly two-thirds of Vale’s sales, Q3 net revenues sank 27% Y/Y to $9.06B, the company's lowest revenue since Q1 2010 and below expectations of $9.65B.
- Says it completed construction of its 30M tons/year Teluk Rubiah distribution center in Malaysia, which will allow it to cut costs in Asia, and began operations from its Serra Leste iron ore plant at the Carajas complex in Brazil.
Oct. 27, 2014, 6:25 PM
- Cliffs Natural Resources (NYSE:CLF) -0.2% AH after reporting Q3 earnings that beat expectations and a 16% Y/Y drop in revenues that nevertheless met estimates.
- CLF swung to a loss in the quarter, dragged down by a $6B writedown related to its purchase of a Canadian iron ore mine as well as 32% lower iron ore prices and 17% lower met coal prices.
- CLF says Q3 costs at its eastern Canadian operations were $81.71/ton, and it expects costs to remain at $80-$85; the big three miners - BHP, RIO and VALE - control massive mines, ports and railroads, which allows them to produce iron ore at $50/ton or lower.
- Iron ore pellet sales volume totaled 6.8M tons (+8% Y/Y) for the U.S., 3.1M tons (+11%) for Asia Pacific, and 2.3M tons for eastern Canada (-12%); North American coal sales volume was 1.9M tons (+15%).
- Gross margin narrowed to 9.8% from 22.5% a year earlier.
- "Despite continued cost cutting progress at Bloom Lake, Phase I is not feasible. By the end of this year, we will have a solution for Bloom Lake," CEO Lourenco Goncalves says.
Jul. 31, 2014, 9:59 AM
- Vale (VALE +1%) reported lower than expected Q2 earnings and revenues as prices for iron ore fell to four-year lows.
- Vale produced 79.4M metric tons of iron ore in Q2, up 13% Y/Y and a record for the quarter; the company’s average sales price for iron ore was $81.03/ton, down 18% Y/Y and 46% less than the all-time high of $151.26 set in Q3 2011.
- Nickel sale volumes rose 3.1% to 67K tons, while the average selling price rose 17%; shipments of copper fell 1.3% to 76K tons.
- Took a "partial" impairment charge of $500M after Guinea's government revoked its license to the undeveloped Simandou iron ore mine in April, and wrote off another $274M to close its money-losing Integra coal mine in Australia.
Jul. 31, 2014, 9:28 AM
Apr. 30, 2014, 11:14 AM
- Vale (VALE -1.3%) reports a 19% Y/Y drop in its Q1 profit to $2.52B, slightly below the $2.59B analyst consensus, as its realized prices for iron ore fell to a four-year low.
- Q1 net revenue fell 11% to $9.5B, the lowest level for any three-month period since Q1 2010; Brazil's seasonal rains limited production, typical for Q1, but lower prices for iron ore also chopped $1.3B from Vale's sales Q/Q.
- Revenue would have fallen further if it were not for a 9.6% growth in iron ore output to 71.1M metric tons, the best Q1 result since 2008 but 13% lower Q/Q.
- Vale received an average $90.52/ton of iron ore it sold, down 19% Y/Y and the company's lowest realized price since 2010.
- EBITDA fell 22% Y/Y to $4.06B.
Feb. 26, 2014, 6:58 PM
- Vale (VALE) says its Q4 net loss more than doubled Y/Y, as a massive tax settlement and impairment charges undercut a relatively strong performance by its core operations.
- Vale's net loss of $6.45B was more than double the $2.65B loss posted in the year-ago quarter, as it had agreed in November to pay 22.3B reais ($9.36B) to the Brazilian government to settle a dispute over back taxes it allegedly owed for profits on its overseas operations; the company also booked impairment charges of $2.3B, mainly related to the suspended Rio Colorado potash project in Argentina.
- However, Q4 adjusted EBITDA rose 50% Y/Y to $6.64B, and sales rose 8.5% to $13.61B as Vale's average realized price for iron ore rose 13% to $112.97/metric ton and the price received for iron-ore pellets rose 16% to $150.17.
- Shares +0.6% AH.
Nov. 6, 2013, 6:13 PM
- Vale (VALE) reports Q3 net income of $3.5B, more than double the year-ago total of $1.64B, and an 11% Y/Y revenue increase to $12.9B, the result of strong production volumes, resilient prices and declining cash costs.
- EBITDA, the closely-watched measure of a company's ability to generate cash profit from operations, surged 37% to $5.88B.
- Iron ore shipments rose 7% to 83.63M metric tons; the average price for bulk iron ore rose 12% to $105.58/ton.
- Sales of coal, magnesium, nickel, copper, gold, silver, cobalt and potash also were higher.
Aug. 8, 2013, 12:17 PM
- Remove Vale's (VALE +4%) $2.8B currency hit due to the falling Brazilian real, and the earnings picture looks much better; Nomura says earnings were $0.64/share in Q2 once the charge is excluded, beating the consensus forecast of $0.47.
- Bernstein backs up the company's view that the weak real could be good news for Vale in the months ahead, but Nomura maintains slowing economic growth coupled with elevated inflation and the depreciating real likely will remain strong headwinds in H2.
- Regarding China, Vale's biggest iron-ore customer, the company says it hasn't seen a significant deterioration in demand.
Aug. 7, 2013, 9:30 PM
- Vale's (VALE) Q2 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.
Aug. 7, 2013, 6:50 PM
Apr. 24, 2013, 7:58 PMMore on Vale (VALE): Q1 misses on the top line but beats on a per share basis as its bottom line swings back to a profit on cost cuts and a lack of write-downs. Net profits were down 18% Y/Y, but the result beat the previous period, stemming seven straight quarters of declining profits. Slowing growth in China has weighed heavily on iron ore prices. But VALE embarked on a company-wide cost-cutting mission last year, and its austerity efforts appear to be bearing fruit, with operating costs and other expenses declining Y/Y. Shares +1% Y/Y. | Comment!
Apr. 24, 2013, 6:33 PM
Feb. 28, 2013, 9:53 AMIn spite of an EPS miss and $5.66B worth of mine write-downs, Vale (VALE +2.4%) is rising post-earnings, as investors focus on a revenue beat and cautiously optimistic commentary. The mining giant is confident it won't see a major slowdown in China, and expects the local steel market to grow moderately this year. Bulk materials and base metals revenue respectively fell 21% and 23% Y/Y thanks to price declines, and rising maritime freight expenses led cost of goods sold rose by $142M even after adjustments. Opex -2% Y/Y to $2.3B. CC at 10AM ET (webcast). (PR) | Comment!
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