First half profits plunged at Anglo American but that did not stop the mining colossus from bumping up the interim dividend.
Profit before tax in the six months to the end of June more than halved to $2,942m from $6,571m the year before, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 31% to $4,942m from $7,112m.
"As a result of markedly weaker commodity prices experienced during the first half of the year, in addition to ongoing input cost pressures across the portfolio, Anglo American reported an operating profit of $3.7bn, a 38% decrease," said Cynthia Carroll, the Chief Executive Officer of Anglo American.
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Group revenue, including contributions from associate companies, fell by one-tenth to $16,408m from $18,294m in the first half of 2011.
Underlying earnings per share fell 47% to $1.38 from $2.58 the year before. The interim dividend has been hiked 14% to 32 cents from 28 cents last year.
"Short term prospects for the world economy have deteriorated in recent months. Alongside continuing structural problems in the Eurozone, economic growth has slowed in the US and major emerging economies, such as China, India and Brazil, albeit from high levels. Yet we see more resilient trends in the medium to longer term. Long term supply constraints across many commodities, combined with continuing industrialisation and urbanisation trends in key growth markets should provide considerable support for prices," Carroll claimed.
JH
