Business Insider

BHP profit hit by pandemic, warns growth cooling outside China

imageStock Markets41 minutes ago (Aug 17, 2020 07:05PM ET)


(C) Reuters. A tonne of nickel powder made by BHP Group sits in a warehouse at its Nickel West division, south of Perth


(Reuters) – BHP Group (NYSE:BHP) reported a lower-than-expected annual profit on Tuesday, as the miner warned of slowing economic growth outside China due to the impact of a coronavirus-led downturn.

While a sharp economic recovery in China helped BHP report a 4% rise in annual iron ore output last month and fuelled optimism over future growth, uncertainty over demand growth elsewhere continues to persist.

“We expect most major economies will contract heavily in 2020, China being the exception,” Chief Executive Officer Mike Henry said.

The world’s largest listed miner also said it was looking to divest its thermal coal operations and intends to focus on higher-quality coking coals.

Underlying profit attributable from continuing operations for the year ended June 30 fell to $9.06 billion from $9.47 billion a year earlier, missing estimates of $9.42 billion, according to Refinitiv IBES data.

The profit miss was in contrast to rival Rio Tinto (NYSE:RIO), which rode its iron ore-rich portfolio to beat profit estimates last month.

BHP declared a final dividend of 55 cents per share, down from 78 cents a year earlier.

BHP profit hit by pandemic, warns growth cooling outside China

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!