Glencore posts earnings dip and returns $2bln to shareholders
STORY: Glencore on Wednesday (February 18) reported a dip in last year's core earnings and said it would return $2 billion to shareholders. The firm’s fresh from failed talks with bigger rival Rio Tinto to forge a $240 billion mining giant. It was called off over differences on valuation and ownership. The Swiss-based miner’s adjusted earnings fell 6% to $13.5 billion last year. Although above analyst forecasts, it marks the third consecutive decline for Glencore after two record years. Its chief Gary Nagle said despite the results, there was underlying momentum in the second half. He said it saw a 49% increase in core profits during the period, which reflected higher metals prices and improved production volumes, especially of copper. Nagle has called for consolidation in the industry, even after Rio Tinto’s failed takeover, saying it would benefit shareholders. They will get 17 cents per share compared with 18 cents last year in the mining company’s $2 billion payout. In July, Glencore launched a cost-cutting review to save $1 billion by the end of the year - which involved shedding about 1,000 jobs. Nagle’s raised $6.5 billion by divesting or closing operations since taking over five years ago. The company’s now in talks to sell 40% of its copper and cobalt business in the Democratic Republic of Congo to a U.S.-backed consortium.
<body><p>STORY: Glencore on Wednesday (February 18) reported a dip in last year's core earnings and said it would return $2 billion to shareholders. </p><p>The firm’s fresh from failed talks with bigger rival Rio Tinto to forge a $240 billion mining giant. </p><p>It was called off over differences on valuation and ownership.</p><p>The Swiss-based miner’s adjusted earnings fell 6% to $13.5 billion last year. </p><p>Although above analyst forecasts, it marks the third consecutive decline for Glencore after two record years.</p><p>Its chief Gary Nagle said despite the results, there was underlying momentum in the second half.
</p><p>He said it saw a 49% increase in core profits during the period, which reflected higher metals prices and improved production volumes, especially of copper.</p><p>Nagle has called for consolidation in the industry, even after Rio Tinto’s failed takeover, saying it would benefit shareholders. </p><p>They will get 17 cents per share compared with 18 cents last year in the mining company’s $2 billion payout.</p><p>In July, Glencore launched a cost-cutting review to save $1 billion by the end of the year - which involved shedding about 1,000 jobs. </p><p>Nagle’s raised $6.5 billion by dives
ting or closing operations since taking over five years ago.</p><p>The company’s now in talks to sell 40% of its copper and cobalt business in the Democratic Republic of Congo to a U.S.-backed consortium.</p></body>