Glencore PLC returned to profitability last year despite a sharp
downturn in the commodities it mines and trades.
The mining giant posted a net profit of $2.31 billion for 2014,
a sharp turnaround from a net loss the previous year when Glencore
took $11.4 billion in charges, most of which was attributable to
its 2013 merger with Xstrata PLC.
Net income excluding one-time items for the year was $4.3
billion, higher than analysts' expectations for a gain of $4.04
billion. Total debt dipped to $30.5 billion from $35.8 billion at
the end of 2013.
"While there remains the potential for future economic setbacks
and no shortage of bearishness towards commodities in financial
markets, physical demand for our raw materials remains healthy,"
Chief Executive Ivan Glasenberg said in a statement.
Glencore took a hit in its mining business, largely because of
weak coal markets. Earnings before interest and taxes from
Glencore's industrial operations, which includes its mines, dipped
17% to $524 million in 2014 from the previous year. Mr. Glasenberg
has said his company's blockbuster merger with Xstrata is "a big
play on coal."
The company has been making efforts to trim its coal output amid
concerns that the market is oversupplied. It shut down production
at coal mines in Australia during the Christmas break, and last
week it said it planned to curb Australian coal production about
15%. In late January, it announced plans to reduce output in South
Africa by at least five million tons a year.
Write to Scott Patterson at scott.patterson@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires