Brazil: Vale’s profit falls in first quarter and China remains main customer

25 April 2008

Rio de Janeiro, Brazil, 25 April – The fall in nickel prices and exchange rate devaluation were the main causes of the 8.8 percent year-on-year fall in net profit of Vale in the first quarter of the year, the company said Thursday.

According to the quarterly report published on its website, net profit for the quarter totalled US$2.021 billion, or an 8.8 percent fall compared with the first quarter of 2007 and 21.5 percent less than the US$2.573 billion posted in the fourth quarter of 2007.

In the period, Vale posted revenue of US$7.68 billion, which was a 4.8 percent rise on the first quarter of 2007, but a fall of 4.3 percent on the final quarter of 2007.

China remained the main destination for the mining company’s Sales, accounting for 16.7 percent of revenues, followed by Brazil with 16.2 percent, Japan with 10.5 percent, the United States, 10.5 percent, Germany, 6.5 percent and Canada, 5 percent.

The company’s total debt on 31 March, 2008 was US$20.523 billion, as compared with US$19.03 billion at the end of 2007 and US$23.48 billion on 31 March, 2007. (macauhub)