Brazil-based mining giant Vale has announced its financial results for the fourth quarter and the full year of 2011, reporting a decline in fourth quarter net profit.
In the fourth quarter, Vale's net profit declined by 21 percent year on year to $4.67 billion due to lower iron ore prices and higher costs. The company's operating revenue also decreased in the given quarter to $14.8 billion, down 1.17 percent compared to the same quarter of the previous year. Shipments to Europe and Brazil declined, while sales to Chinese steelmakers increased by 7.3 percent year on year.
In the full year of 2011, Vale reported an all-time high operating revenue of $60.4 billion, up 29.9 percent year on year. The company increased its net profit for 2011 to $22.9 billion, up 32.6 percent compared to 2010.
In 2011, Vale increased its iron ore output by 4.8 percent year on year to a record 322.6 million mt, also registering a record output for pellets and coal in the given period, with 51.8 million mt and 7.2 million mt respectively. Fourth quarter iron ore output increased to 82.9 million, up 3.3 percent year on year.