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Xstrata posts 30% drop in earnings; merger with Glencore delayed again

March 05, 2013 - 10:35 GMT Location: Singapore

KEYWORDS: Xstrata , Glencore , results , earnings , revenue

Mining company Xstrata reported a 30% year-on-year drop in core earnings in 2012, hurt by lower commodity prices and stronger currencies.

"Our businesses faced difficult operating conditions during the year, as the combined impact of falling commodity prices, ongoing inflationary pressure on operating costs and continued strong producer currencies relative to the US dollar put pressure on our margins," ceo Mick Davis said. Earnings before interest, taxation, depreciation and amortisation (Ebitda), excluding exceptional items, stood at $8.12 billion, from $11.68 billion in 2011, the company announced. Xstrata’s 2012 Ebitda excluded exceptional items of $2.6 billion. The $2.6-billion charges included writedown on Xstrata’s investment in Lonmin ($840 million), and the writedowns on the Brunswick zinc mine in Canada and the Cosmos nickel mine in...

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