Commodities giant Glencore beats expectations with first-half net profit of $2.47 billion

Analysts had predicted a net profit attributable to shareholders of $2.3 billion for the integrated trading company that extracts, ships and trades staples such as coal, corn and copper.

Glencore's comparable profit during the first six months of 2010 was $1.08 billion.

Higher commodities prices helped boost earnings, allowing Glencore to offer shareholders an interim dividend of 5 cents a share.

Earnings before interest and tax reached $3.3 billion in the first half, up from $2.2 billion in the same period last year, the company said.

Shares in the Baar, Switzerland-based company rose 4.3 per cent on the London exchange to 406.15 pence a share ?€" still far below the price it fetched when the stock floated for 530 pence a share three months ago.

Analysts have questioned whether that price was too ambitious, given the strong performance of competitors such as Rio Tinto and BHP Billiton Ltd.

"It is a bit upsetting that we are not performing better, but I think we are a company that focuses on the long term," Glasenberg said of the share price.

"We hopefully will have good results in the second half and the share price will eventually reflect that," he said during a conference call. "I think investors will learn to understand the robustness of our marketing division and give us credit on that side of the business."

Glasenberg, who as the company's biggest single shareholder has himself lost millions of dollars on paper since the IPO, said he was optimistic about the direction commodities prices are heading.

With continued strong demand from China and limited global supply, prices should remain stable, he said.

Glencore on Wednesday announced it was bidding about 270 million Australian dollars ($283 million) to assume full control of Australian nickel miner Minara, offering AU$0.87 per share for the 27 per cent stake it doesn't already own.

Glasenberg said the company would remain on the lookout for "opportunistic" acquisitions.

Authors: Commodities - Yahoo! News Search Results

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