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Brazilian miner Vale's profit slumps well below forecasts

Published 04/26/2023, 06:52 PM
Updated 04/26/2023, 07:12 PM
© Reuters. FILE PHOTO: The logo of the Brazilian mining company Vale SA is seen in Brumadinho, Brazil January 29, 2019.  REUTERS/Adriano Machado/File Photo/File Photo

SAO PAULO (Reuters) -Brazil's Vale, one of the world's largest miners, reported a first quarter net profit down 59% from a year earlier, far below analyst expectations, as profits were dragged down by weaker sales and lower iron ore prices.

The company posted a net profit of $1.8 billion for the first three months of 2023, in a filing to Brazil's main stock exchange on Wednesday, while analysts polled by Refinitiv had forecast a profit of $2.4 billion.

Last week, the miner had already reported a slip in iron ore sales volume, blaming it on port loading restrictions and supply chain rebalancing after strong sales in the previous quarters.

Revenues, meanwhile, fell 22% to $8.4 billion, also lagging analysts' $9.2 billion forecast. Meanwhile, costs rose 5.4% to $5.4 billion.

© Reuters. FILE PHOTO: The logo of the Brazilian mining company Vale SA is seen in Brumadinho, Brazil January 29, 2019.  REUTERS/Adriano Machado/File Photo/File Photo

Earnings before interest, taxes, depreciation and amortization came in at $3.6, below analysts' $4.3 billion estimate.

Over the quarter, Vale said that prices for its iron ore had averaged $108.6 per tonne, down from the $141.4 per tonne it reported for the same period last year.

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