BHP Offers Some Detail on Where It Is Cutting Costs -- Market Talk
October 27 2014 - 07:52PM
Dow Jones News
23:22 GMT [Dow Jones] BHP Billiton (BHP) has for the first time
given some detail on where its knife is cutting, UBS analysts say.
They note that the miner in a briefing to investors in London has
said that out of its overall cost-savings target, about US$2.1
billion is set to come out of iron ore, US$500 million from
petroleum, US$400 million from coal, US$300 million from copper and
US$200 million from corporate operations. The analysts say BHP also
aims to reduce capex relative to its current targets while
maintaining growth plans. Production from BHP's core portfolio of
operations is expected to grow 23% over the two years to the end of
FY15, ahead of the 16% growth mentioned at the company's full-year
results. UBS has a buy recommendation on BHP and A$42/share target.
BHP is trading down 1.1% at A$33.43. (robb.stewart@wsj.com;
Twitter: @RobbMStewart)
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