Vale 2Q Profit Drops Again on Lower Prices

By Dean Seal

Brazilian iron-ore mining company Vale profit fell for a sixth consecutive quarter as an uptick in sales by volume failed to offset a drop in iron prices.

The Rio de Janeiro-based company reported net income from continuing operations of $892 million for the second quarter, down from $4.09 billion in the same quarter last year. Net operating revenue declined to $9.67 billion from $11.16 billion in the year-ago period.

Adjusted earnings before interest, taxes, depreciation and amortization from continuing operations fell to $3.87 billion during the quarter, compared with $5.25 billion in last year's second quarter.

The average realized price per metric ton of iron-ore fines fell to $111 from $137.90 per ton a year earlier, while the price for iron-ore pellets, a premium product, slumped to $160.40 per ton from $201.30 per ton, Vale said.

Vale reported last week that it sold 63.3 million metric tons of iron ore in the second quarter, up from 62.8 million tons a year earlier, while the sales of pellets was about even with the year-ago quarter's total of 8.8 million tons.

The company's American depositary shares were up 1.4% at $15 in after-hours trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

July 27, 2023 19:51 ET (23:51 GMT)

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