Glencore, preparing for a possible stock listing, posted 40% jump in 2010 net profit driven by strong commodity prices especially metals such as copper.
An analyst said that the privately held group released only a brief financial summary to the public, but its upbeat outlook was included in a full set of results provided to holders of its bonds.
Mr Henri Alexaline credit analyst at BNP Paribas said that "Their outlook is basically a continuation of the trend we've had this year. The mega trend for the mining sector is still in place and will continue next year. We'll continue to see recovery in developed markets."
Some analysts have warned that commodity prices may be overheated and are due for pull backs but Glencore expects more overall gains in 2011 based on the huge appetite of China and other countries needing infrastructure.
Mr Alexaline said that they expect the phasing of industrialization of emerging countries such as India and China will continue, so on that basis they expect another strong year.
Glencore said that the metals and mineral segment was the strongest contributor to profits improved market sentiment in important end user industries such as automotive and construction. The price of copper widely used in power and construction, rallied by 30% last year and surged to fresh all time peaks above USD 10,000 per tonne this year.
The metals segment includes both its trading activities as well as mining assets such as stakes in Xstrata, Congolese copper and cobalt producer Katanga Mining and Century Aluminum. For the latest updates PRESS CTR + D or visit Stock Market news Today
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