Anglo axes 15,400 as profits tumble

31st Jul 2009 07:14

Bid-threatened miner Anglo American saw underlying earnings slump by nearly 70% in the first half of 2009 as the impact of the global downturn on demand for commodities took its toll.Pre-tax profits fell to $3.63bn from $6.47bn on revenues of $11.1bn, down 38%, but underlying earnings picture showed a much steeper fall to $1.1bn from $3.48bn. Anglo recently rejected a merger approach from rival Xstrata and chief executive Cynthia Carroll is under intense pressure to justify that stance. She has been fiercely criticised for suspending the dividend earlier this year and today would only say that its restoration would be considered "against the overall market environment," Instead the statement focused on Anglo's cost-cutting programme. "Anglo has made significant progress towards its $2bn target from its asset optimisation and supply chain initiatives, already delivering more than $450m in the first half of the year and is expected to deliver over $1bn for the full year 2009," she stated. "In February, the group announced a global headcount reduction of 19,000 to be achieved by the end of 2009. Reductions are ahead of plan and have reached 15,405," she added.Carroll added that two new discoveries had boosted reserves at the Los Bronces copper project in Chile by 50%, while it may seek a partner for its Minas Rio iron ore project in Brazil.