Anglo American profits tumble in 1H

Global miner Anglo American said Friday that net profits tumbled by 70 percent in the first half of the year, hit by sliding commodity prices and rising production costs. Earnings after taxation slumped to $1.2 billion (977 million euros) in the six months to June, compared with $3.988 billion in the same period of the previous year, Anglo American said in a results statement. Group sales meanwhile sank ten percent to $16.41 billion during the first six months of the year compared with the same period a year earlier. Chief Executive Cynthia Carroll said profits sank "as a result of markedly weaker commodity prices experienced during the first half of the year, in addition to ongoing input cost pressures across the portfolio". She noted that the outlook for the global economy had worsened due to a raft of factors -- but added that the group remained positive over commodity markets in the long run. "Short term prospects for the world economy have deteriorated in recent months," Carroll said. "Alongside continuing structural problems in the eurozone, economic growth has slowed in the US and major emerging economies, such as China, India and Brazil, albeit from high levels. "Yet we see more resilient trends in the medium to longer term. Long term supply constraints across many commodities, combined with continuing industrialisation and urbanisation trends in key growth markets should provide considerable support for prices." In reaction to the poor results, Anglo shares recoiled 1.65 percent to 1,931.50 pence in early morning trade on London's FTSE 100 index, which was 0.18 percent higher.