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Glencore income plummets

Glencore International
– revenues halved
London, England — MININGREVIEW.COM — 28 August 2009 – Swiss-based Glencore International has revealed that its gross income, excluding exceptional items, fell by 53% to US$1.442 billion (R11.5 billion) in the first half of 2009 from US$3.092 billion (R24.7 billion) in the same period a year ago.

In a statement issued here, the world’s biggest commodity trader said its revenues had nearly halved to US$45.242 billion (R361.9 billion) in the first half from US$86.175 billion (R689.4 billion) a year ago. Net income excluding exceptionals fell to US$1.121 billion (R9 billion) from US$2.634 billion (R21 billion)

“The first half of 2009 contrasted markedly with the same period last year as the global economy and financial system sought to regain some level of stability,” the company said in a statement.

It added that encouraging signs of increasing business activity in recent months had helped improve margins in its industrial assets division.

Gross and net income in the industrial assets division rose by 32% and 53% respectively in the second quarter of 2009, from the first quarter.

The company’s net debt, taking into account readily marketable inventories, fell to US$10.4 billion (R83.2 billion) from US$11.5 billion (R92 billion).

“Short-term debt refinancing requirements remain modest, mainly focusing on the US$1.05 billion (R8.4 billion) Xstrata secured loan maturing in December 2009,” Glencore said, adding that it had a 34.5% stake in London-listed Xstrata. “In this regard, discussions with a number of banks are well advanced for a 2 year replacement loan.”