Company has an optimistic outlook for the new decade despite current economic stagnation
The world’s biggest mining company has reported a 35% fall in profits this year.
BHP Billiton’s net profits reduced to $15.4bn at the end of June from $23.6bn a year ago due to a fragile global economy, high costs and industrial actions.
Chief Executive Marius Kloppers is to forgo his annual bonus after deciding that spending needed to be cut down.
He said that the company would be investing $35bn in lucrative projects in the current year but declined to comment on the savings the company had projected as a result.
The company also expects China to increase demand in the medium term while also noticing positive development in the US housing market after a slight stabilisation.
“Our positive longer-term view is unchanged as urbanisation and industrialisation across the developing world is expected to remain the primary driver of global economic growth,” the company’s results reported.
It also added that economic growth in the coming decade was going to increase significantly and the overall outlook remained very optimistic.
Citi Index analyst Peter Esho said: “It’s a good report card. It lacks large positive upward surprises but it also does not contain any large nasties.”
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