SYDNEY--BHP Billiton Ltd. (BHP.AU) reported a 47% decline in
first-half profit amid a downturn in world commodity markets, and
said it had further deepened cost-cutting to counter weaker prices
as a decadelong resources boom fades.
BHP--the world's biggest mining company by market value--said it
recorded a net profit of US$4.27 billion for the six months through
December, down from a US$8.11 billion profit a year earlier. The
result was higher than the median US$3.59 billion forecast of six
analysts polled by The Wall Street Journal.
The company said non-cash charges against assets including some
oil fields in North Louisiana reduced its earnings by US$938
million.
BHP said it would lift its interim dividend 5% to US$0.62 a
share.
Prices of two of BHP's most important commodities, iron ore and
oil, halved in value last year. Iron ore alone previously accounted
for nearly half of the group's earnings.
Demand has been outpaced by a supply surge from projects planned
when prices were booming. New production has come at a time when
China's economy is slowing and concerns about global growth are
rattling confidence.
BHP is overhauling its strategy to focus on producing iron ore,
copper, coking coal and petroleum. It intends to spin off assets
including nickel pits and aluminum smelters into a seperately
listed company, named South32, by mid-year.
-Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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