Anglo American Optimistic Despite Loss in Earnings

Mineweb reported that Anglo American plc (LSE:AAL) is optimistic about its financial performance despite a 25-percent drop in EBIT to $4.9 billion and a $3.9-billion impairment charge.

As quoted in the market news:

While on the face of it, net loss widened to $2.51 billion in 2014 from $961 million the previous year, and net debt increased to $12.9 billion from $10.7 billion, expected to peak at around $13.5-$14 billion in 2015, Anglo’s results could have been a lot worse.

Anglo American CEO Mark Cutifani stated:

Our diversified product portfolio provided us with a degree of insulation from the particularly sharp price falls for the bulk commodities of iron ore and coal, albeit in an environment where weaker commodity prices accounted for $2.4 billion of underlying EBIT reduction.

Click here for the full Mineweb report