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Glencore income down despite sales boost

Keywords: Tags  Xstrata, Glencore, results, earnings, revenue

SINGAPORE — Glencore International Plc posted a 73-percent decline in net income in 2012 as lower commodity prices outweighed gains in its marketing business.

The Baar, Switzerland-based company’s net income for the year ended Dec. 31 was $1.15 billion, down sharply from 2011’s $4.27 billion, even as revenues rose 15 percent to about $214.44 billion.

The world’s biggest commodities supplier said growth in its marketing and industrial businesses helped to avert a bigger decline.

"The performance of the marketing business reinforces the strength and resilience of Glencore’s business model and the diversification benefits associated with combining and integrating a portfolio of industrial assets with large-scale physical sourcing," Glencore chief executive officer Ivan Glasenberg said.

"Despite the challenging environment faced by the mining industry, Glencore delivered organic growth in its industrial businesses, which complemented a robust performance in its marketing operations," Glasenberg added.

Xstrata Plc, which is being purchased by Glencore in a merger that has again been delayed, posted a 30-percent slump in earnings in 2012 (, March 5).

"Completion of the merger remains conditional upon the receipt of the outstanding regulatory approval in China and completion of the Xstrata court process," Glasenberg said.

"Our approach to integration will be to incorporate the best of both businesses and plans to this effect are well advanced. The benefits of this process will accrue to all stakeholders in the combined business," he added.

"As we look ahead to 2013, we remain focused on ensuring that we maximize the potential of the expanded Glencore platform irrespective of prevailing economic conditions," he said. 

A version of this article was first published by AMM sister publication Metal Bulletin.

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