Glencore disappoints despite rising profits
Wednesday 15 June 2011
Glencore, the commodity-trading giant which began life as public company with a blockbuster listing last month, missed forecasts with its maiden results yesterday.
The group's adjusted earnings before interest and tax (EBIT) rose by 45 per cent to $1.8bn (£1.1bn) in the first three months of the year, compared with Deutsche Bank's estimate of $1.94bn. Net income was also higher, climbing by 47 per cent to $1.3bn over the first quarter.
"The earnings were 6 per cent below our expectations and that was mainly driven by a slightly disappointing number in the marketing business," Paul Cliff, an analyst at Nomura, said.
Glencore said adjusted EBIT from its metals and minerals marketing activities was down around 20 per cent at $263m following "a particularly strong first quarter" last year. The oil-marketing division stood out, however, with strong gains following a challenging 2010.
The company struck a positive note on outlook, saying that it remained well positioned for 2011. Glencore, whose shares stood at 500p, down 23.4p, last night, closing below its initial offer price of 530p, said that despite the recent volatility in commodity prices, the "underlying fundamentals across many of our key commodities are supportive".
Chief executive Ivan Glasenberg said: "Our first-quarter results show that Glencore continues to deliver shareholder value whilst emphasising the unique benefits of having large-scale marketing and industrial asset activities spread across a diversified commodity base."
Mr Glasenberg added that the group's listing had seen considerable support from equity investors for the trader's "business model, strategy and ability to deliver superior returns over the long term".
- 1 Sabrina Corgatelli: US hunting tourist posts picture of herself with dead giraffe after Cecil the lion outrage
- 2 Dutch King Willem-Alexander declares the end of the welfare state
- 3 A-level results 2015: UK exam board OCR admits it 'estimates' hundreds of pupils' grades after papers 'go missing'
- 4 Giant Minion terrorises drivers in Ireland as 40ft inflatable blocks busy Dublin road
- 5 'Cool kids' can go on to become losers in later life, study finds
Sabrina Corgatelli: US hunting tourist posts picture of herself with dead giraffe after Cecil the lion outrage
'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
Edward Heath 'child sex abuse' allegation: Investigation to be held into Wiltshire police handling of alleged claim in the 1990s
Labour leadership race: Jeremy Corbyn could be the next Prime Minister, says Ken Clarke
A-level results 2015: UK exam board OCR admits it 'estimates' hundreds of pupils' grades after papers 'go missing'
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
iJobs Money & Business
£20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...
£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
Up to 70k DOE: Guru Careers: We are seeking an experienced Financial Director ...
£11000 - £50000 per annum: Recruitment Genius: This financial company offer ma...