Vale 1Q Profit Falls on Drop in Prices, Lower Sales Volume

By Jeffrey T. Lewis

SÃO PAULO-- Brazilian iron-ore miner Vale SA's profit fell in the first quarter on lower sales volumes and a drop in price for the steel precursor.

The Rio de Janeiro-based company reported net income from continuing operations of $1.8 billion in the quarter from $4.5 billion a year earlier. Net operating revenue declined to $8.4 billion from $10.8 billion in the same period a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization from continuing operations was $3.6 billion compared with $6.2 billion previously.

The average realized price per metric ton of iron ore fines fell to $125.50 from $141.60 per ton a year earlier, while the price for iron ore pellets, a premium product, fell to $162.50 per ton from $194.60 per ton, Vale said.

Vale reported last week that it sold 45.9 million metric tons of iron ore in the first quarter, down from 51.3 million tons a year earlier, while sales of pellets increased to 8.1 million tons from 7.0 million tons.

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

(END) Dow Jones Newswires

April 26, 2023 19:18 ET (23:18 GMT)

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