BHP shares gain on record profit report
BHP Billiton shares closed up 12¼p after the company announced record first-half profits of $2.8 billion, a 127% increase year-on-year. The company stock finished the day at 420p on London's FTSE 100 on the first rank.
The overall sales of the company came to $15.5 billion in the first half of the 2005 fiscal year, up 42% from the previous year. Spectacular increases in the prices of copper, aluminum,
iron ore, oil and metallurgical coal all propelled the mining company into record territory. High capacity utilization rates and lower labor, raw material and energy costs also contributed to
BHP's strong bottom line.
Sales of carbon steel materials, including
iron ore, grew 99% to $1billion, while sales of base metals increased 231% to $1.04 billion. The company also sold $340 million worth of
stainless steel, up 76%.
Company turnover from base metals in the first half of the 2005 financial year was $2.35 billion, a 74% increase year-on-year. Carbon steel material turnover rose 46% to $3.22 billion, while
stainless steel materials recorded a 36% increase in turnover to $1.01 billion.
BHP Billiton's sales to
China doubled, rising to $1.59 billion in the first half of the 2005 fiscal year. The company sold 10% of its output to
China in the first half; however, company managers disclosed that
BHP has any plans in the works to expand its market geography.
The company commissioned six major projects since June 30, 2004, and ten more are under development.