The proportion of bulk material sales comprising of iron ore, pellets, manganese ore, and ferroalloy, metallurgical and thermal coal increased during the third quarter. Bulk material represented 77.7% of the third quarter operating revenues, in line with 75.6% realized during the second quarter. Sales to Asia contributed 56.4% toward total third-quarter revenue, up from 48.2% in the second quarter.
The company reported record revenue, margins, earnings and cash flows during the third quarter. Operating revenue increased 110% year-over-year to $14.5 billion, while operating income and net profit surged 200% each; operating margin increased to 55.6% from 47.9% in the second quarter.
The stock has analysts' buying rating of 76% and has an upside potential of around 24% over the next year. Vale is currently trading at 7.2 times its estimated 2011 earnings.