Advertisement

Wednesday preview: BHP Billiton to announce profit drop in half-year results

BHP Billiton is expected to announce a sharp decline in profits for the last half of 2012 on Wednesday.

BHP Billiton is expected to announce a sharp decline in profits for the last half of 2012 on Wednesday.

All eyes will be on the mining giant as it releases its half-year results.

Canaccord Genuity analysts predict a 43% fall in underlying earnings to $5.65bn, excluding exceptional one-off costs, as a result of falling iron and coal prices in the second half.

Advertisement - Article continues below

The Anglo-Australian group may also reorganise impairment charges against its Australian aluminium and nickel business, which have been hit by the strong domestic currency and weak prices.

However, Canaccord said it does not expect impairments large enough to swing the results to a loss.

The broker predicted dividend growth and estimated an underlying earnings before interest and taxes of $9.65bn, down from $15.68bn reported for the same period a year earlier.

Chief Executive Marius Kloppers is likely to point out cost-cutting and tighter spending strategies, Canaccord added.

"We expect management to highlight cost improvements and turnaround plans in the aluminium, manganese, metallurgical coal and nickel operations given the losses expected in these units," the analyst said as it issued a 'hold' rating for stocks and target price of 2,155p.

"We will also look for status updates on the Jansen potash project and iron ore expansion plans."

Shares were up 0.92% to 2,240.00p at 15:42 Tuesday.

Advertisement - Article continues below

INTERIMS

A&J Mucklow Group, BHP Billiton, Centaur Media, Galliford Try, Netcall

INTERIM EX-DIVIDEND DATE

Mid Wynd International Inv Trust, Mountview Estate, PZ Cussons, Rank Group

QUARTERLY EX-DIVIDEND DATE

Barclays, Blackrock North American Income Trust , Carnival, GlaxoSmithKline, M Winkworth

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

FOMC Interest Rate Minutes (US) (19:00)

Housing Starts (US) (13:30)

Building Permits (US) (13:30)

MBA Mortgage Applications (US) (12:00)

Producer Price Index (US) (13:30)

Consumer Confidence Indicator (EU) (10:00)

Consumer Price Index (GER) (07:00)

Producer Price Index (GER) (07:00)

Flash consumer confidence (E17) (15:00)

FINALS

Pinnacle Technology Group, Rathbone Brothers, Rexam, RSA Insurance Group, Spectris, STV Group, Travis Perkins

AGMS

MedicX Fund Ltd.

UK ECONOMIC ANNOUNCEMENTS

BoE Interest Rate Minutes (09:30)

Claimant Count Rate (09:30)

Unemployment Rate (09:30)

FINAL DIVIDEND PAYMENT DATE

Impax Asset Management Group

FINAL EX-DIVIDEND DATE

Brunner Inv Trust, Catlin Group Ltd., Henderson Opportunities Trust, Independent Inv Trust, Jersey Electricity 'A' Shares, Reckitt Benckiser Group, Throgmorton

RD

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/property/601606/house-prices-crash-uk-property-prices-falling-where-next
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
Visit/investments/stockmarkets/601611/nasdaq-all-time-high-markets-and-the-real-economy
Stockmarkets

How can markets hit new record highs when the economy is in such a mess?

Despite the world being in the midst of a global pandemic, America's Nasdaq stock index just hit an all-time high. And it's not the only index on a bu…
3 Jul 2020
Visit/economy/inflation/601584/the-end-of-the-bond-bull-market-and-the-return-of-inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020