By Jeffrey T. Lewis
SÃO PAULO–Vale SA said Wednesday its profit declined in the first quarter from a year earlier amid higher costs and lower production.
The iron mining company said net income fell to $4.5 billion in the period, from $5.5 billion a year earlier. Net operating revenue fell to $10.8 billion from $12.6 billion in the first quarter of 2021. The company reported adjusted earnings before interest, taxes, depreciation and amortization from continuing operations of $6.2 billion compared with $8.5 billion a year earlier.
Vale said earlier this month that production declined in the first quarter from a year earlier due to weather-related problems. Sales volumes also declined in the period, and higher realized prices for some products, such as pellets, only partially offset those declines.
The company’s costs per ton of production increased in the period because it was spread out over a smaller volume of output, Vale said.
Write to Jeffrey T. Lewis at [email protected]
Credit: www.marketwatch.com /