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Vale S.A. (VALE)

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  • Thu, Jul. 30, 11:45 AM
    • Vale (VALE -3.2%) moves into the black for the first time in a year, overcoming a slump in iron ore prices to report a Q2 net profit of $1.68B, a 17.3% Y/Y increase and more than 4x the average forecast of $408M.
    • A major factor behind the improved result was a reduction in cash costs, with Vale lowering its cost of iron ore production to $15.8/metric ton from $18.3/metric ton in Q1; total Q2 expenses were $4.93B vs. $6B in the year-ago quarter.
    • Vale says its realized price on ore sales rose to $50.6/metric ton from $46 in Q1.
    • Vale's Q2 debt service costs totaled $215M, down from $983M a year ago.
    • However, Q2 net revenue dropped 29.7% Y/Y to $6.96B, and EBITDA fell 46.1% to $2.2B.
    • In this morning's earnings conference call, Vale said last week's collapse of a coal stacker at its port in Mozambique will not affect its coal production forecast for next year.
    • Separately, Vale says it agrees to sell a 36.4% stake in its MBR unit to an investment fund for 4B reais ($1.19B); the company also concludes a previously announced sale of four Valemax ships to China Merchants Energy Shipping Co. for $448M.
    | Thu, Jul. 30, 11:45 AM | 5 Comments
  • Wed, Jul. 29, 12:25 PM
    • Cliffs Natural Resources (CLF -0.8%) shares have fluctuated above and below the flatline even after reporting a bigger than expected Q2 loss, driven by lower U.S. iron ore pricing and shipments.
    • CLF says it expects to see improved industry operating conditions and profitability in H2, but it nevertheless cuts its 2015 sales volume forecast for U.S. iron ore operations by 1.5M tons to 19M tons of iron ore pellets, blaming a supply glut created by heavy steel imports.
    • Ben Levisohn of Barron's speculates CLF shares may be helped today by investors betting that steel prices will head higher after steel producers filed a trade case, or it could be a short squeeze as short-interest remains high despite being well off its peaks.
    • Other iron ore producers are higher: BHP +1.5%, RIO +1.2%, VALE +3.1%.
    | Wed, Jul. 29, 12:25 PM | 3 Comments
  • Thu, Apr. 30, 1:17 PM
    • Vale (VALE -0.9%) is lower after posting a Q1 loss - its third straight quarterly loss, and a wider loss than in Q3 and Q4 - under pressure from falling iron ore prices.
    • As well as weaker iron ore prices, Vale says the depreciation of the Brazilian real against the dollar had cost it $3B in the quarter.
    • But shares are well off earlier lows after Vale's Head of Ferrous Peter Poppinga told investors during a conference call that the company may cut its iron ore production forecast by up to 30M metric tons over the next two years.
    • Poppinga says Vale could replace some old higher-cost iron ore production as new capacity comes on stream: "If the market demands, we are prepared to reduce production from the south and southeast system," he said, referring to the company's Minas Gerais mines.
    • The exec said Vale's iron ore production forecast for 2015 would remain at 340M metric tones, but he did not specify whether adjustments could be made to the forecast for next year and beyond.
    | Thu, Apr. 30, 1:17 PM | Comment!
  • Thu, Apr. 30, 9:37 AM
    • Vale (NYSE:VALE): Q1 EPS of -$0.13 misses by $0.01.
    • Revenue of $6.24B (-34.3% Y/Y) misses by $1.16B.
    • Press Release
    | Thu, Apr. 30, 9:37 AM | 3 Comments
  • 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, 8:59 AM | Comment!
  • Thu, Feb. 26, 6:46 AM
    • Vale (NYSE:VALE): Q4 EPS of -$0.05 misses by $0.24.
    • Revenue of $9.23B (-30.4% Y/Y) beats by $190M.
    • Press Release
    | Thu, Feb. 26, 6:46 AM | 3 Comments
  • Oct. 30, 2014, 9:32 AM
    | Oct. 30, 2014, 9:32 AM | 1 Comment
  • 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. 30, 2014, 7:59 AM | 5 Comments
  • 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.
    | Oct. 27, 2014, 6:25 PM | 7 Comments
  • 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, 9:59 AM | Comment!
  • Jul. 31, 2014, 9:28 AM
    • Vale (NYSE:VALE): Q2 EPS of $0.28 misses by $0.17.
    • Revenue of $9.9B (-7.1% Y/Y) misses by $730M.
    • Shares -0.6% PM.
    • Press Release
    | Jul. 31, 2014, 9:28 AM | 1 Comment
  • 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.
    | Apr. 30, 2014, 11:14 AM | Comment!
  • 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.
    | Feb. 26, 2014, 6:58 PM | 6 Comments
  • 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.
    | Nov. 6, 2013, 6:13 PM | 1 Comment
  • Aug. 8, 2013, 12:17 PM
    | Aug. 8, 2013, 12:17 PM | Comment!
  • Aug. 7, 2013, 9:30 PM
    • 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.
    | Aug. 7, 2013, 9:30 PM | 2 Comments
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Company Description
Vale SA is a metals & mining company. It produces & supplies iron ore, iron ore pellets, nickel, manganese ore, ferroalloys, copper, coal, phosphates, potash, cobalt & others.
Industry: Steel & Iron
Country: Brazil