You are currently viewing our desktop site, do you want to download our app instead?
Moneyweb Android App Moneyweb iOS App Moneyweb Mobile Web App

NEW SENS search and JSE share prices

More about the app

Kumba profit declines as much as 63%

As iron-ore prices drop.

Kumba Iron Ore, Africa’s biggest producer of the steelmaking ingredient, said first-half profit fell as much as 63% after prices of the steelmaking ingredient declined.

So-called headline earnings, which exclude one-time items, will drop to a range of R2.4 billion ($194 million) and R2.6 billion, or R7.50 and R8.05 a share, in the six months through June 30 from R6.51 billion, or R20.28, a year earlier, the Pretoria, South Africa-based unit of Anglo American said in a statement Wednesday.

“The significant decrease in export iron-ore prices is largely responsible for the decrease in earnings,” the company said.

Iron ore dropped 37% in the year ended June 30 due to a surplus that emerged after the largest miners including Rio Tinto Group, BHP Billiton and Fortescue Metals Group invested billion of dollars to boost output, exacerbating a glut as China, the biggest buyer, grew at the slowest pace in more than two decades.

Kumba closed 6.57% higher at R132.40 in Johannesburg.

©2015 Bloomberg News

Kumba Iron Ore

 

VIDEOS

COMMENTS   2

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

It cannot just be the Chinese causing the woes of Kumba – what is wrong with this company and its strategy? The share is now trading at levels when the financial crisis started and I am beyond pain!

Since when is Chris Griffith back as Kumba CEO?

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Podcasts

INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: