BHP Billiton Profit Falls 6% to $9.94 Billion, Australian Stocks Rise

Mukesh Buch
08 Feb, 2012
New York City

BHP Billiton, the largest Australian company reported earnings declined 6% in the six month period on the fall in iron ore prices and rising operating costs. Separately, Rio Tinto announced expansion of $3.4 billion in Western Australia. In trading, Australian stocks advanced.

[R]8:00 PM Sydney – BHP Billiton, the largest Australian company reported earnings declined 6% in the six month period on the fall in iron ore prices and rising operating costs. Separately, Rio Tinto announced expansion of $3.4 billion in Western Australia. In trading, Australian stocks advanced.[/R]

Australian stocks gained but the increase was tempered after BHP Billiton reported a decline in profit in the last six months period.

The ASX 200 index increased 16.5 or 0.4% to 4,290.7 and All Ordinaries index added 18.7 or 0.4% to 4,363.6.

In trading, turnover increased to 2.2 billion shares worth $5.1 billion compared to 1.84 billion shares worth $4.65 billion on Monday. Of the shares changing hands, 576 shares increased 392 decreased and 403 closed unchanged.

Stock Movers

BHP Billiton Ltd fell 15 cents to $37.75 and Rio Tinto Ltd closed up 75 cents to $71.76 and the company announced expansion plan of $3.4 billion in Pilbara region.

BHP profit in the first six months declined 6% to US$9.94 billion from $10.52 billion a year ago period on lower commodities prices and higher labor costs.

The largest Australian company which is also 12% of the ASX 200 index reported revenues increased 9.7% in the period on the higher production of iron ore despite a fall in the iron ore price.

The company said it will pay 55 U.S. cents in dividend for the period on March 22 and the company did not announce any new share buyback plan.

Fortescue Metals Group increased 17 cents to $5.43, Lynas Corporation Limited closed higher 8 cents to $1.46 and Iluka Resources increased 41 cents to $18.20. Newcrest Mining fell 16 cents to $33.38.

The U.S. based Alcoa Inc said it plans to review production at its Point Henry aluminum smelter that may eliminate some or all of 600 jobs at the Geelong plant. The company blamed the lack of profitability at the plant on the strength in the dollar, high metal prices and rising raw materials costs.

Oil Search Limited increased 5 cents to $6.52, Santos Limited rose 24 cents at $14 and Woodside Petroleum added 81 cents to $35.22. Energy Resources Australia increased 4.5 cents to $1.35 and Aurora Oil and Gas added 8 cents to $3.00.

Commonwealth Bank of Australia decreased 19 cents to $50.32 and ANZ added 25 cents to $21.61 and Westpac inched lower 2 cents to $20.90. National Australia Bank declined 28 cents to $22.93.

Macquarie Group rebounded 81 cents to $26.71 after it estimated full-year 2011 net to declined 25%.

David Jones Limited increased 3 cents to $2.54 and Harvey Norman Holdings closed down 2 cents to $2.07. Wesfarmers Limited rose 19 cents to $29.73.

Qantas Airways Ltd increased 1 cent to $1.63, Virgin Australia was unchanged at 35.5 cents and Flight Centre increased 18 cents to $19.93.

QR National closed up 2 cents to $3.76.