Anglo American H1 profit down 31 percent as revenue slumps amid recession

Anglo American H1 profit down 31 percent

LONDON — Mining company Anglo American PLC said Friday that net profit in the first half of the year fell by 31 percent as both the prices and volumes of its sales slumped amid the global recession.

The company said net profit for the period was $2.97 billion, compared to $4.28 billion a year earlier. Revenue was down 38 percent to 11.1 billion.

“Anglo American’s performance was impacted by the sharp declines in commodity prices against the prior year and anticipated reductions in volumes, partially offset by exchange rate benefits compared to the first half of 2008,” said Cynthia Carroll, the company’s chief executive.

The company did not announce a dividend for the first half.

Anglo American said profit from platinum and diamonds was down 99 percent, and profit from industrial minerals fell 83 percent, while coal profit fell just 2 percent.

The company, which has set a target of $2 billion in annual cost savings, said it delivered savings of $450 million in the first half and expected to exceed $1 billion for the full year. It cut 15,400 jobs in the first half, with a goal of 19,000 total this year.

On the Net: www.angloamerican.co.uk