Excluding exceptional items, EBITDA was up 23% to US$3.2 billion, EBIT was up 31.6% to US$2.18 billion, and attributable profit was up 30.3% to US$1.21 billion.
The result was at the top end of analysts’ expectations. A Reuters survey of analysts in Britain and Australia forecast earnings, excluding one-off items, of $1.06 million, within a range of US$991 million to US$1.21 billion.
The stronger Australian dollar and South African rand against the US currency impacted operating costs, offset by higher iron ore contract settlements announced in May 2003 and stronger prices for hot briquetted iron.
The division’s second half will benefit from a 28% rise in Japanese benchmark coking coal prices, and an 18.6% rise in benchmark iron ore prices from the start of the new Japanese financial year in April.
Energy coal EBIT fell 31.5% to US$85 million from US$124 million due to foreign exchange changes and lower production from Ingwe in South Africa. This was partially offset by stronger export prices, cost savings at Cerrejon Coal (Columbia), and increased volumes at Hunter Valley and Cerrejon Coal.
Looking forward, BHPB said China continues to record strong domestic growth, providing the impetus for a recovery in other Asian economies.
It also see other major economies picking up, although cautioned the strong euro against the US dollar is a cause for concern. MiningNews.net
