South African mining giant Anglo American posted on Thursday record earnings for the first half of the year, driven by strong coal and base metals prices.
Headline earnings, the group’s favoured measure of calculating net profit, rocketed by 42,9% to $1,784-billion (€1.450-billion) compared with the same period a year earlier.
The figure for headline earnings — calculated after tax but before exceptional items and goodwill amortisation — beat analysts’ consensus forecast of a $1,671-billion profit.
Operating profits meanwhile rose by 28% to $2,98-billion.
Anglo attributed the record performance to strong prices for platinum, gold, diamonds, coal, and base and ferrous metals, owing to robust growth in China and the United States, coupled with limited growth in capacity.
The period saw strong contributions from the base and ferrous metals divisions, as well as coal and platinum.
But the contribution from the diamonds activities was lower than last year, and results from paper and packaging also fell in a tough market.
The group also said its efficiency drive generated cost savings of $303-million in the first half, 22% higher than last year and ahead of the company’s target.
Anglo said the outlook for most of its commodities remained sound.
”If Chinese demand continues at current levels and prospects for OECD growth improve in the second six months, the group’s earnings should remain strong for the remainder of the year,” it said.
It added that it continued to look for further investment opportunities in China. – Sapa-AFP