Anglo American´s revenues drop as China slows

26th Jul 2013 07:34

Mining giant Anglo American has announced a 1 per cent drop in its top line to $16.193bn for the first half of 2013, with management highlighting the increasing uncertainty and volatility around the short-term outlook as China moves to a more sustainable growth path and model. Profit before taxes fell by 34% to $1,994m. Nevertheless, operating cash-flow improved by 19% to $3,167m versus last year´s figures.As regards the outlook, management indicated that economic news has been mixed in recent months, with increasing uncertainty and volatility around the short-term outlook. China's economic growth rate should run well below the average rate of the last decade, which will be a drag on growth in other emerging economies, it added. However, the company sees more encouraging signs of an upturn in the major advanced economies. As well, looking out to the medium-term the Company expects solid global economic growth broadly in line with its underlying trend.The company´s return on capital employed (RoCE) decreased to 11% from 14% for the comparable period of 2012.An interim dividend of 32 US cents per share has been declared, the same as last year. That is in line with the Board's commitment to provide a base dividend, which will be maintained or increased through the cycle.AB