This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Glencore Sees Sharp Fall In 2012 Earnings

BERLIN (AP) â¿¿ Commodities trader Glencore's net earnings fell 75 percent last year due to weaker sales prices and charges related to its holding in Russian aluminum maker UC Rusal, the company said Tuesday as it prepares to merge with mining company Xstrata PLC.

Glencore reported full-year profit of $1 billion, down from the 2011 figure of $4.05 billion. It said one-time expenses came in at $1.21 billion, up from $511 million the previous year, due largely to impairment costs on its holding in Rusal. The company also booked a $128 million loss on disposal of investments after gaining $9 million the previous year.

Revenue was up 15 percent to $214.4 billion from $186.2 billion a year earlier, due primarily to higher oil volumes.

The Swiss-based company supplies raw materials such as oil, copper and wheat and owns plants, warehouses and mines.

Glencore and Xstrata, the world's biggest exporter of thermal coal which also produces copper, nickel and zinc, agreed last year on a merger that would create an industry giant.

Glencore said Tuesday that the so-called long stop date by which the merger, which still needs Chinese regulatory approval, has to be completed has been extended to April 16 from March 15. CEO Ivan Glasenberg said that the merged company will "incorporate the best of both businesses and plans to this effect are well advanced."

Glasenberg noted in the company's report that 2012 was "a relatively lackluster year" for commodities, with average prices down 10 to 20 percent. However, he pointed to "signs of underlying economic improvement" in the U.S. and progress in China, including a smooth leadership transition, as hopeful signs.

The company is proposing a 5 percent rise in its annual dividend to $0.1575, "reflecting our confidence in our business and the continued ramp-up of our brownfield industrial assets," Glasenberg wrote.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,619.51 +23.16 0.13%
S&P 500 2,063.12 +5.48 0.27%
NASDAQ 4,986.8670 +28.3990 0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs