fortescue profit dives despite revenue rise

February 19, 2010 - 10:36AM

Iron ore miner Fortescue Metals Group has reported a sharp fall in first-half net profit despite an increase in revenue.

The companys net profit for the six months to December 31 was $US43 million ($48.24 million), down 94 per cent from $US760 million in the previous corresponding period.

Revenue was $US1.189 billion, up 17 per cent from $US1.015 billion.

Fortescue shares reversed earlier gains to be down 10 cents, or 2 per cent, in recent trade to $4.86.

Earnings before interest, tax, depreciation and amortisation was $US426 million, down from $US479 million for the six months to December 2008.

During the first half of 2009/10, Fortescue shipped 18.61 million tonnes of iron ore, up from 13.16 million tonnes in the previous corresponding period.

Revenue per tonne shipped fell to $US57.22, compared to $US71.65 previously.

Cash operating costs rose to $US27 per tonne from $US23.48.

Cost of sales jumped to $US954 million from $US598.3 million previously.

Fortescue said it retained a healthy cash position of $US706 million at the end of December.

Total liabilities rose to $US3.71 billion from $US3.55 billion.

AAP