Vale S.A Q1 Profit Down, Despite Higher Sales

(RTTNews) - Brazilian metals and mining company Vale S.A. (VALE) reported that its first-quarter net income declined to $1.59 billion from last year's $2.49 billion.

Underlying earnings were $1.79 billion, compared to $2.23 billion a year ago. Underlying earnings per share were $0.37, compared to $0.40 last year.

Adjusted EBIT margin dropped to 36% from last year's 39.9 percent. Adjusted EBITDA declined to $3.97 billion from $4.31 billion last year. Adjusted EBITDA margin dropped to 46.2 percent from 50.6 percent a year ago.

Net operating revenues increased to $8.60 billion from prior year's $8.52 billion.

The increase in sales revenues was mainly due to higher sales volumes for Ferrous Minerals and higher sales prices for Base Metals, being partially offset by lower Ferrous Minerals sales prices and lower sales volumes for Base Metals.

Looking ahead, the company said near-term outlook for copper remains balanced, with growing demand and with supply expected to keep pace unlike in 2017, which saw supply growth lag demand given the disruptions.

Near-term outlook for nickel remains balanced, despite Indonesian ore exports continue to increase.