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Anglo American says profits slump on falling commodities

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(Globalpost/GlobalPost)

Anglo American suffered a 68-percent slump in net profits during the first half, hurt by falling commodity prices amid the weak economic outlook, the global miner said on Friday.

Profits after tax tumbled to $403 million (303.5 million euros) in the six months to the end of June, compared with $1.254 billion in the same part of last year, Anglo said in a results statement.

Revenues dipped one percent to $16.19 billion.

"The first half of 2013 has been characterised across the mining industry by continuing downward pressure on commodity prices, driven by uncertain short term prospects in many of the world's major economies, combined with cost inflation," said chief executive Mark Cutifani.

"Some improvement in Anglo American's production performance and depreciating producer country currencies have worked to partially offset these pressures," added Cutifani, who took over from former head Cynthia Carroll in April.

As a result, underlying operating profit sank by only 15 percent to $3.262 billion during the first half.

In late morning deals, Anglo's share price climbed higher as investors shrugged off falling profits.

The stock rose 1.66 percent to 1,412 pence on London's FTSE 100 index of top companies, which was 0.11 percent higher at 6,596.51 points.

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http://www.globalpost.com/dispatch/news/afp/130726/anglo-american-says-profits-slump-falling-commodities