Glencore Xstrata Plc posted a 9-percent year-on-year fall in
underlying earnings in the first half of the year even as its
marketing arm reported a solid performance, the merged entity
Switzerland-based company recorded a goodwill impairment of
$7.6 billion in relation to the Xstrata acquisition, reflecting
the broader negative mining industry environment and the
heightened risks associated with greenfield and large-scale
The mining company
expects cash savings to materially exceed the previous guidance
of $500 million per annum.
underlying earnings for the six months ended June 30 stood at
$6 billion, compared with adjusted pro forma earnings before
interest, taxes, depreciation and amortization (Ebitda) of $6.6
billion in the same period last year. Marketing operations
contributed $1.2 billion of earnings before interest and taxes
(Ebit), a 6-percent increase year on year.
The metals and minerals divisions underlying earnings
fell 4 percent year on year in the first half thanks to weak
commodities prices, although production growth at African
copper mines and Perus Antapaccay mine offset the weak
prices, the company said.
A version of this article was first
published in AMM sister publication Metal