Glencore Profit Tops Estimates on Oil, Ag Trading

(Bloomberg) Jesse Riseborough and Andy Hoffman – Glencore Plc, the commodity trader and metals producer run by billionaire Ivan Glasenberg, reported profit that beat estimates as oil and agricultural trading helped it weather a rout in resource prices. Adjusted net income declined 7 percent to $4.29 billion in 2014 from a year earlier, the Baar, Switzerland-based company said Tuesday. That beat the $4.08 billion average of 18 analysts’ estimates compiled by Bloomberg. Adjusted earnings before interest, tax, depreciation and amortization at its trading business, which includes the sale of commodities from crude to copper, rose 15 percent to $3 billion. The Bloomberg Commodity Index of 22 raw materials dropped to its lowest in more than 12 years in January amid slowing demand from China, the biggest buyer of copper and iron ore and the largest consumer of energy. The results distinguish Glencore from BHP Billiton Ltd., Rio Tinto Group and Vale SA, the world’s biggest mining companies, which last month reported lower profit as declines in iron ore, copper and oil sapped earnings.  “Once again we proved that trading is resilient against commodity price movements,” Chief Executive Officer Glasenberg, 58, said in a phone interview. “We have a different strategy … continue reading

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