Anglo American Profit Falls 31%

LONDON -- Mining company Anglo American (AAUK Quote) said Friday that net profit in the first half of the year fell by 31% as both the prices and volumes of its sales slumped amid the global recession.

Net profit for the period was $2.97 billion, compared with $4.28 billion a year earlier. Revenue was down 38% to $11.1 billion.

"Anglo American's performance was impacted by the sharp declines in commodity prices against the prior year and anticipated reductions in volumes, partially offset by exchange rate benefits compared to the first half of 2008," said Cynthia Carroll, the company's CEO.

Anglo American didn't announce a dividend for the first half.

Anglo American said profit from platinum and diamonds was down 99%, and profit from industrial minerals fell 83%, while coal profit fell just 2%.

The company, which has set a target of $2 billion in annual cost savings, said it delivered savings of $450 million in the first half and expected to exceed $1 billion for the full year. It cut 15,400 jobs in the first half, with a goal of a total 19,000 this year.