On February 10, the world's largest iron ore producer Brazilian Vale announced its financial results for the fourth quarter of 2009 and the whole year, saying that, despite the weaker performance compared to previous years, the company's response to the recessionary environment was very important for heightening capacity.
The company posted balanced results in the fourth quarter of 2009 compared with the previous quarter and the same period of 2008. Accordingly, the iron ore giant posted a net profit of $1.52 billion in the fourth quarter, up compared to the net profit of $1.37 billion in the fourth quarter of 2008 but down compared to the net profit of $1.68 billion in the third quarter of 2009. The company's operating revenues fell to $6.54 billion from $7.44 billion in the same period of 2008 and the $6.89 billion recorded in the third quarter. Vale's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $2.15 billion for the fourth quarter were down from $2.7 billion in the same quarter of 2008 and $3.01 billion recorded in the third quarter of 2009.
In 2009, the company's results were weaker compared with 2008. Vale posted a net profit of $5.35 billion, substantially down compared to the net profit of $13.2 billion in 2008. The company's sales revenues fell to $23.93 billion in 2009 from $38.51 billion in 2008. Vale's adjusted EBITDA of $9.17 billion for 2009 was down from $19.02 billion in 2008.
Commenting on the results, the company said, "Vale has leveraged its competitive advantages - low-cost world-class assets, a healthy balance sheet, a large pool of liquidity, discipline in capital allocation, a highly skilled and motivated labor force and entrepreneurship spirit - to launch several initiatives to make it stronger in the future, seeking to reduce costs on a permanent basis and raise efficiency. No investment project was cancelled, new growth options were identified and our growth potential was enhanced."