BHP Billiton Iron Production Falls 8%, Australian Stocks Rebound

Marcus Jacob
18 Apr, 2012
New York City

Australian stocks rebounded and BHP Billiton first quarter production declined 8% from the December quarter and fell 14% from a year ago on weather related disruptions.

[R]8:00 PM Sydney – Australian stocks rebounded and BHP Billiton first quarter production declined 8% from the December quarter and increased 14% from a year ago on weather related disruptions.[/R]

Australian stocks rebounded after BHP Billiton’s iron ore output met expectations and international trading sentiment was positive after Spain successfully sold its debt at lower bond yields.

The ASX 200 index increased 59.90 or 1.4% to 4,348.70 and All Ordinaries index increased 58.33 to 4,427.16.

Stock Movers

BHP Billiton said its iron ore production declined 8% from the previous quarter in the three months to March and increased 14% from a year ago quarter to 38 million tons. The miner also left its annual production estimate unchanged in the Pilbara region.

Yesterday, Rio Tinto said iron production at mines it controlled and in joint ventures declined 11% to 45.6 million tons from 51.2 million tons in the quarter a year ago.

BHP Billiton soared 95 cents to $35.10 and Rio Tinto surged $1.80 to $66.50 after the iron miner blamed weather for its recent production woes.

Lynas Corporation Limited closed down 2 cents to $1.13 and Iluka Resources advanced 53 cents to $17.07.

Newcrest Mining gained 29 cents to $28.64 and Kingsgate increased 26 cents to $6.22.

Oil Search Limited closed up 6 cents at $6.97. Woodside Petroleum added 57 cents to $34.55 and Santos Limited increased 10 cents to $14.00.

David Jones Limited advanced 10 cents to $2.42, Harvey Norman Holdings closed up 3 cents to $1.98 and Woolworths gained 11 cents to $25.65. Myer edged up 1 cent to $2.34 and Kathmandu closed down 2 cents at $1.29.

Billabong International Limited unchanged to $2.88.

Westpac Banking Corporation increased 8 cents to $22.06 and Commonwealth Bank of Australia surged 68 cents to close at $50.78. Bank of Queensland added 18 cents to $7.14. ANZ gained 26 cents to $23.26 and Macquarie Group soared 65 cents to $29.77.

Real estate developers closed mixed Westfield Group advanced 30 cents to $9.17 and the heavily leveraged mall developer said it plans to sell eight shopping centers in the U.S. for $1.11 billion to pare down its debt.

Stockland rose 7 cents to $3.01.

Qantas closed up 2 cents to $1.66, Virgin Australia unchanged to 41.5 cents and Flight Centre increased 12 cents to $21.42.

QR National added 4 cents to $3.65.