Brazil’s Vale first-quarter net profit falls 19.6%, but beats expectations
By Peter Frontini and Marcelo Rochabrun
SAO PAULO (Reuters) -Brazilian miner Vale, one of many world’s largest producers of iron ore, reported on Wednesday its first-quarter internet revenue fell 19.6% to a greater than anticipated $4.45 billion as stronger pricing offset weaker manufacturing numbers.
Vale earnings for the three months ended March 31 beat the imply Refinitiv analyst forecast of $4.24 billion.
Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization got here in at $6.37 billion, down 26.1% from the identical quarter of 2021.
Vale cited decrease gross sales of iron ore fines and pellets as a consequence of an intense rain season in high mining state Minas Gerais.
In January, the miner was hit by heavy rainfall within the area, making it partially droop operations at its southeastern and southern iron ore methods.
“Nonetheless, we took benefit of seasonally decrease volumes to carry out upkeep actions that may result in safer operations and strong manufacturing going ahead,” Vale’s Chief Government Eduardo Bartolomeo stated in an announcement.
Vale benefited from core metals iron ore, copper and nickel rising in worth in comparison with the final quarter of final 12 months. Within the first three months of 2022, Vale realized $141.4 per tonne of iron ore fines, up from the $106.8 reported within the fourth quarter.
Vale additionally expects iron ore demand to rise within the U.S.
“Strong demand will preserve industrial manufacturing rising in 2022 with delayed orders for factories with pandemic fading away,” the miner stated.
On the identical time, freight prices have risen since January due to larger power costs, Vale stated.
(Reporting by Peter Frontini and Marcelo Rochabrun; Modifying by Leslie Adler, Chris Reese and Bernard Orr)
