Anglo American says net profit falls nearly a third

30th July 2010, Comments 0 comments

Global miner Anglo American on Friday said its net profits slumped 31 percent to two billion dollars in the first half, a result skewed by the fact it had made a major disposal the previous year.

Profits after tax dropped to 2.061 billion dollars (1.576 billion euros) in the six month to June 30 compared with the first half of 2009, the London-based company said in an earnings statement.

During the first half of 2009, Anglo American had earned more than one billion dollars from the sale of its interest in AngloGold Ashanti.

Anglo American, which has significant mining operations in South Africa, said operating profit more than doubled to 4.4 billion dollars in the first half of 2010, while revenues shot up more than a third to 15 billion dollars.

"Strong demand for steel raw materials, driven by Chinese-led consumption, resulted in favourable demand environments," Anglo American said in its statement.

"Earnings were further supported by a resurgence of demand and prices for base metals, most notably in the copper market, where Anglo American's portfolio of world class assets delivered substantial earnings."

© 2010 AFP

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