Aug 12, 2009, 9:34 GMT
Sydney - Anglo-Australian miner BHP Billiton Ltd announced a 62-per-cent fall in profits Wednesday, reflecting lower prices for minerals as a consequence of the global financial crisis and big write-downs for mothballing surplus capacity.
The full-year net profit came in at 5.8 billion US dollars on revenues that were down 15 per cent to 50.2 billion dollars.
Just a year ago the world's biggest miner delivered Australia's biggest ever corporate profit, its seventh annual rise in earnings.
Chief executive Marius Kloppers said the first half of its financial year was disastrous, with prices for commodities falling by 50-90 per cent.
The second half was marked by recovery, principally because China began restocking to meet demand generated by its huge economic stimulus package. But South African-born Kloppers warned that the recovery was fragile.
'The commodity re-stocking in China now appears largely complete, with substantial inventory-build in specific commodities over the last three months at end-user level and in strategic stockpiles,' he said.
'Chinese demand has been exceptionally strong in cases in which imports have replaced higher-cost domestic production (such as in iron ore), or where commodities have substituted unavailable products (such as copper cathode for copper scrap).'
The profit fall was smaller than many analysts expected, resulting in a 1-per-cent hike in the share price. The lift in the market leader helped the stock exchange to its highest close since October.
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