Anglo American earnings drop 31%

Jul 27, 2012 | 05:50 PM |

Tags  Anglo American, copper, nickel, production, results, profit

SINGAPORE — Anglo American Plc’s core earnings dropped 31 percent year on year in the first half of 2012 due to weaker commodities prices and higher costs across its portfolio.

The London-based diversified miner made $4.94 billion in earnings before interest, taxes, depreciation and amortization (Ebitda), down from $7.11 billion in the same period in 2011.

Group revenue, including associates, for the first half fell 10 percent year on year to $16.41 billion.

"We continue to see more sustainable growth in the medium to longer term despite significant volatility in the short term," the company said in a statement.

The rapid "catch-up" in living standards, notably in China and India, combined with a medium-term need for infrastructure replacement in developed countries, presents an attractive proposition for early-cycle commodities, it added.

"Long-term prices for Anglo American’s products are expected to be supported by widespread supply constraints and the challenges producers face in bringing new supply into production, leading to increasing capital intensity and tight market fundamentals," Anglo American said. ....