Australia's Fortescue Posts 40% Fall in H1 Net Profit
Australia's Fortescue Metals Group, the world's No. 4 iron ore producer, reported a 40 percent fall in first-half profit as the price of the steel-making ingredient fell sharply and costs rose as it ramped up production to feed Chinese steel mills.
Fortescue, which ranks behind Rio Tinto, Vale and BHP Billiton, posted a net profit of $478 million for the six months ended December.
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That compared with $801 million a year ago and an average forecast from analysts of around $466 million, although their projections had ranged widely.
Fortescue Chief Executive Nev Power said a record operational result of a 32 percent rise in shipments to 35.7 tons for the half-year had partly offset price volatility.
(Read More: Rio Tinto Posts Annual Loss; New CEO Vows to Cut Costs)
Shares in the company were down 1.8 percent at A$5.09 at 0140 GMT.
