Before the market open, the Rio de Janeiro-based metals and mining company reported a quarterly loss of $8.57 billion as prices of commodities and iron ore in particular have continued to plunge. Iron ore prices are down by more than 70% from their 2011 peak, according to Bloomberg.
Although Vale's loss was much less than the $56 million expected by analysts surveyed by Thomson Reuters, it was the company's worst since at least its 1997 privatization, Reuters reports.
Vale's net debt is now about $25.2 billion, higher than the $24.7 billion reported at the end of 2014. The company will consider selling core assets as part of an effort to reduce its net debt to $15 billion, CEO Murilo Ferreira said on a conference call, Bloomberg adds.
Earnings before interest, tax, depreciation and amortization (EBITDA) declined by 36% from the year-ago period to $1.39 billion, but met analysts' estimates.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Vale's weaknesses include its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: VALE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.