Replies to post #212 on The Rising Influence of Rising Affluence

[DewDiligence]

Here we go again! Some results from Monday’s market:

CLF +8%
BHP +5% (good thing I wasn’t swayed by #msg-40132751 :- ))
VALE +5%
HES +4%
CLB +4%
APC +3%
COP +3%
PCL +3%

All told, not a bad day in NR-land.

[DewDiligence]

BHP FYH209 Profit Tops (Lowered) Forecasts

[BHP is the world’s largest diversified natural-resources company. Like several other miners (e.g. VALE, CLF), BHP’s share price has been on fire, rising 152% from its 12-month low in Nov 2008. BHP’s fiscal year ends on Jun 30 and hence FY2H09 is the period from 1/1/09–6/30/09. The company reports earnings for half-year periods rather than quarters.]

http://news.yahoo.com/s/nm/20090812/bs_nm/us_bhpbilliton_2

›12-Aug-2009 2.56 a.m. ET

MELBOURNE (Reuters) – BHP Billiton Ltd/Plc (BHP.AX), the world's largest miner, gave a cautiously optimistic outlook for commodities demand on Wednesday after posting a 51 percent dive in second-half profit, its first profit fall in seven years.

It said demand in China and India had returned earlier than many had expected, driven mainly by restocking, but it noted that the rebuilding of stocks in China was now largely over. It also left a question mark over signs of a pickup in developed markets.

"While demand in developed markets remains constrained, a brighter outlook has emerged recently from some of the developing markets," the company said.

"After intensive de-stocking, there is emerging evidence of demand improving in North America, Europe and Japan," it added.

But BHP Billiton said it was too early to say whether the improvement was driven just by restocking or a combination of restocking and real demand.

While the whole mining sector has suffered from the global economic slump, forcing companies to idle capacity and delay expansion projects, BHP Billiton is seen to be well-positioned with its strong balance sheet to take advantage of any upturn.

China is the key to any early recovery for Australian miners, as it is the number one buyer of iron ore, the biggest earner for BHP and its rival Rio Tinto Ltd/Plc (RIO.AX) (RIO.L) this year.

To beef up their position and reap up to $10 billion in savings, Rio Tinto and BHP, the world's second- and third-largest iron ore miners respectively, are in the process of sealing an iron ore production joint venture in Western Australia [#msg-38603023].

The companies have yet to seek approval from European competition regulators, who last year raised concerns about BHP's planned takeover of Rio Tinto, a deal that BHP dropped as commodity prices plunged last year.

BHP's net profit before one-offs fell to $4.59 billion in the six months to June from $9.37 billion a year earlier, topping analysts' forecasts around $4.07 billion.

It reported $4.8 billion in losses, largely on the suspension of its Ravensthorpe nickel operation and the sale of its Yabulu nickel refinery. The overall losses dragged annual net profit down to $5.88 billion.

It held its final dividend steady at 41 cents a share, but that raised the full year payout by 17 percent.

Iron ore earnings for the full year jumped 35 percent, mostly driven by the first half [i.e. the second half of calendar 2008], to $6.2 billion, while base metals earnings plunged 84 percent to $1.29 billion.

Full year earnings from petroleum dropped 26 percent to $4.1 billion.‹