BHP (BHP -1.3%) CEO Andrew Mackenzie says he will "stick up for globalization" and is more worried about damage to the world economy from trade disputes than their impact on demand for the commodities the company produces.
BHP has begun the new fiscal year with positive momentum but the outlook is clouded by the U.S.-China trade dispute, Mackenzie said after the company issued its full-year earnings and pledged it would pay a record dividend to shareholders.
The trade war is "causing disruption and the partial unraveling of global supply chains," Mackenzie said. "We're not completely immune to some form of downturn and that's why we're nervous."
BHP expects global growth this year to be near the low end of a 3.25%-3.75% range.
"We continue to enjoy strong sales to China," Mackenzie said; record steel production at Chinese mills contributed to iron ore prices surging to a five-year high in July, but prices have fallen of late as the impact eases of supply disruption at the start of the year caused by Brazil's dam disaster and extreme weather in Australia.
Subscribe for full text news in your inbox