BHP announces record profits for FY 2005
Booming iron ore prices helped Melbourne, Australia-based mining company BHP Billiton post record earnings for the fiscal year ended June 30, 2005. BHP Billiton reported an 85 percent year-on-year rise in profits to $6.5 billion for fiscal year 2005 (July 1, 2004 to June 30, 2005). The company said that its earnings before interest and tax (EBIT) rose 70 percent year on year to $9.3 billion. Demand from China and other developing countries contributed to the growth in company sales. China accounted for 12.6 percent of BHP Billiton's revenue in FY 2005. In the company's EBIT, the share of iron ore, coking coal and manganese ore increased 148.1 percent year on year to $2.82 billion thanks to stronger commodity prices. The company also saw EBIT of $758 million, up nearly 33 percent year on year, from sales of nickel and ferrochrome, both of which are used in stainless steel making. However, despite the record profits, shares in the miner slid on the London Stock Exchange.