Subscribe to RSS feedBHP Billiton profit plunges as prices crash
Resources giant BHP Billiton has reported a 62% plunge in full-year profit following a massive fall in commodity prices.
On the slide: BHP Billiton manages US$5.8bn profit despite huge price falls
Net profit after tax was $US5.9bn in the year ended June 30, down from a profit of US$15.4bn in the same period last year, the company said.
The first half of the 2009 financial year saw steep declines in the prices of commodity markets in which BHP Billiton operates -- iron ore, metallurgical coal and petroleum.
"Spot prices for our commodities fell between 50%-90% over this period as aggressive de-stocking occurred in all regions," the company said.
"Lower prices led to supply-side cuts of 5%-25% year-on-year across the commodity suite."
Lower average realised prices for commodities such as copper, nickel, crude oil and alumina slashed earnings before interest and tax by $US10bn.
The global economic downturn forced BHP Billiton to slash 6000 jobs this year.
However, BHP Billiton said in the long term it expected strong growth in demand for its commodities.
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