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Vale (NYSE:VALE) said on Thursday its Q2 earnings fell sharply from a year earlier, smacked by declining iron ore and copper prices at the end of the quarter but partially compensated by higher iron ore sales.
The miner reported Q2 adjusted EBITDA plunged 53% Y/Y to $5.25B from $11.2B a year earlier, far short of the analyst consensus estimate $6.32B, while net income tumbled to $6.15B from $7.6B a year ago, and operating revenues sank by nearly a third to $11.2B from $16.5B in the prior-year quarter.
Vale (VALE) said its average realized iron ore sales price fell 31% Y/Y to $113.30/metric ton, while free-on-board cash costs rose 11% due to more expensive fuel and exchange-rate swings.
The company still pledged to pay out ~$3B to shareholders in September, in addition to a $8.3B stock buyback program announced earlier this year.
Vale (VALE) recently lowered its full-year production guidance for both iron ore and copper.
Image and article originally from seekingalpha.com. Read the original article here.