Boston, MA 03/03/2014 (wallstreetpr) – Vale SA (ADR) (NYSE:VALE) has reported weak Q4 earnings that fell below consensus estimates with earnings per ADR coming in at 62 cents against consensus estimates of 64 cents. The company year over year earnings were heavily bolstered by the massive improvement in the company’s revenues as well as reduced operating costs. Earnings per ADR for the full year clocked in at $2.38 an increase of 14.4% compared to the prior year same quarter and slightly above Zacks consensus estimates of $2.37.
Revenues
Operating revenues for the quarter were high by 8.5% and 5.4% sequentially clocking in at $13.6 billion and higher against consensus estimates of $12.6 billion. Higher production volumes and prices were cited as the main reason behind the upsurge.
Ferrous minerals accounted for 74.8% of the total revenue with coals sales accounting for 2.5%, base metal sales 13.9%, fertilizer nutrient sales for 4.3%
The full year saw Vale SA (ADR) (NYSE:VALE) revenues come in at $49 billion slightly higher than the $48 billion reported in F2012.
Expenses
Costs of goods for the quarter came in at $ 7 billion with general and administration expenses making up $362 million of the total amount. Research and development, expenses came in at $276 million.
Cash flow
Cash and cash equivalent as of the end of the fourth quarter stood at $5.3 billion against $7.1 billion reported for the same period a year ago The Company’s liabilities as of the end of the fourth quarter stood at $50.1 billion against $43.7 billion the prior year.
Net cash generated from operational activities came in at $1.7 billion against $3.2 billion for the same quarter a year ago with capital spending dropping from $4.8 billion the prior year to $3.8 billion.
Outlook
Vale SA (ADR) (NYSE:VALE) plans to increase production volumes of its mining operations in Carajas as well as engage in cost cutting strategies.
Vale SA (ADR) (NYSE:VALE) was down in Friday trading session closing the week at $14.17 a share a drop of 1.12%
