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Vale Shares Fall 3.4% After Disappointing 1Q Production Report

By Jeffrey T. Lewis

 

SÃO PAULO--Vale SA's shares fell 3.4% Wednesday after the Brazilian iron miner reported disappointing sales and production figures for the first quarter.

The Rio de Janeiro-based company's shares reached 75.85 reais, the equivalent of $15.04, and are down 11.6% from the end of last year through Tuesday's close. Brazil's benchmark Ibovespa stocks index was down 1.6% in mid-morning trading.

Vale said Tuesday after the close that from the fourth quarter of 2022, iron ore output fell 17.4% and sales of the steel precursor dropped 43.5%. Production of iron-ore pellets, a premium product, rose 0.7% and sales of pellets fell 7.5% from the previous quarter.

BTG Pactual reiterated its buy recommendation for the shares. Analysts at BTG said iron ore shipments came in below their expectations but were at levels that maintained Vale's production guidance for this year.

 

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

 

(END) Dow Jones Newswires

April 19, 2023 10:55 ET (14:55 GMT)

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