Even though iron ore prices dropped a lot and inflation stayed high, Vale ( NYSE:VALE ) said late Thursday that its Q3 net profit was down from the same quarter last year. This was better than what analysts had predicted . Vale stock was trading slightly lower on Friday at $12.71 as of October 28, 09:43 AM EDT.
The company’s third-quarter net income of $4.45 billion, or $0.98 per share, was 19% lower than the $5.5 billion reported in the same quarter a year ago, but it easily outperformed the $0.57 per share Refinitiv forecast. The Q3 revenue of $9.93 billion, which fell short of both the $10.2 billion consensus estimate and last year’s $12.3 billion, was down 19.5% Y/Y.
Adjusted EBIT for Q3 fell 47% year over year to $3.7 billion, much lower than the $4.6 billion analyst consensus. Iron ore prices at Vale ( NYSE:VALE ) decreased to $92.6/metric ton in the third quarter from $127.2 in the same period a year earlier, iron ore fines prices dropped to $103.3/ton from $162.9, and iron ore pellet prices fell to $194.3/ton from $249.9 in the previous quarter. Although the company produced 89.7 million tons of iron ore during the third quarter, sales fell short of production. Vale’s ( NYSE:VALE ) performance is worse than it was last year at the same time that iron ore prices are at their lowest level in two and a half years.
Vale stock drops as profit misses estimate
With prices going down and cost inflation still happening, Vale SA, the second-largest iron ore producer in the w...
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