Rio de Janeiro based Vale SA, the globe's biggest iron ore producer, announced record Q1 net profits as revenue doubled due to higher sales of metals such as copper and nickel, the company said on Friday.
According to analysts Vale was expected to post per-share profit of $1.11 on an adjusted basis, the average of 12 estimates compiled. However, net income increased to $6.826bn, or $1.29 a share, from $1.604bn, or 30 cents, the same period a year ago.
Vale said its result was triggered by a “robust increase” in global industrial production levels during the quarter at a rate of nearly 9 percent annually, which brought on higher-than-expected demand for metals and minerals.
The company announced operating revenues of $13.548bn in Q1, the highest level for a first quarter, and operating income, as measured by adjusted EBIT reached a record mark of $7.969bn. Excluding the non-recurring gain, the adjusted EBIT of $6.456bn is the highest for a first quarter for the company.
“The recovery is broadening, both in terms of sectors and geographically, contributing to the sustainability of the expansion cycle,” Vale said.