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HomeEconomyAustralia's Fortescue's annual profit falls 40% on weak iron ore prices

Australia's Fortescue's annual profit falls 40% on weak iron ore prices

(Reuters) – Australian miner Fortescue Metals Group (OTC: FSUGY) Ltd said on Monday its annual profit fell 40% as weaker iron ore prices from cooling demand in top consumer China, rising costs and labor shortages dented its earnings.

Annual profit at Fortescue Metals Group, the world’s fourth-biggest iron ore miner, took a hit as iron ore prices came under pressure on persistent concerns about demand from top steel producer China. Its profit margins were further suppressed by rising costs and labor shortages.

So the Perth-based miner earns an average of $99 per dry metric ton (dmt) of iron ore.99 year, less than $40.24/dmt is above A year, when the miner’s earnings hit an all-time high.

Another reason for the decline in profits is the shortage of skilled labor following the COVID-19 pandemic, Increased personnel costs for the Australian mining industry.

Fortescue, a company owned by billionaire Andrew Forrest about 37%, reported The annual basic after-tax net profit is $6. 11 Billion dollars, below record $. 24 A billion a year ago. This is largely in line with Refinitiv’s estimate of $6.24 billion.

Miners declare a final dividend of AUD 1. 21 per share, down from the A$2 per share announced last year. 11.

Earnings and dividends at rival Rio Tinto (NYSE: RIO ) have also been hit by iron ore prices for weeks After a dismal earnings report, it retreated from 2021 highs on concerns that demand in major consumer China will slow.



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