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Vale -5% as production decline drags Q1 earnings

Published 04/27/2017, 11:59 AM
© Reuters.  Vale -5% as production decline drags Q1 earnings
VALE
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  • Vale (VALE -5%) plunges ~5% after missing Q1 earnings estimates, reflecting the impact of heavy rains that slowed production and rising financial expenses.
  • Vale says Q1 net income totaled $2.49B, vs. profit of $525M in the prior quarter and $1.77B a year ago and missing analyst consensus expectations of $3.325B, even as its strategy of reining in production at low-margin facilities drove down costs; adjusted EBITDA hit $4.3B, below a consensus estimate of $4.99B.
  • Vale had said Q1 iron ore production fell 6.7% as seasonal rainfalls in the northern system, which groups the Carajás, Serra Leste and S11D mines in northern Brazil, hurt extraction; revenue fell even as realized prices rose 9% Q/Q.
  • Now read: A Look At The Impact Of Electric Vehicles On The Nickel Sector


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