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Xstrata posts 30% drop in earnings; merger with Glencore delayed again
March 05, 2013 - 10:35 GMT
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
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Euromoney Institutional Investor PLC.
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