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Brazilian miner Vale SA on Thursday reported third-quarter net profit of $3.9 billion, significantly below analysts’ forecasts of $6.2 billion, due to lower iron ore prices and a write-down of its coal business.
While Vale’s net profit fell by almost half from the previous quarter, it was up 34% from the year-ago period.
Vale, one of the world’s largest iron ore miners, reported that its quarterly numbers were affected by iron ore prices that plummeted 31% in the reported period, as well as a work stoppage at its Sudbury nickel mine in Canada.
The company had a write-down in its coal business amounting to nearly $2 billion, but gave no further details.
Vale announced Thursday that it would buy back 200 million shares, or about 4.1% of the company’s outstanding stock. The new program reflects the company’s management’s confidence in Vale’s potential to consistently create and share value. The company reported adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of $6.9 billion.