SYDNEY (AP) — BHP Billiton said its annual profit dived nearly 30 percent as slower growth in China and other emerging economies resulted in lower prices for copper, coal and iron ore.
The mining company on Tuesday reported a $10.9 billion profit for the year ended June 30, down 29.5 percent from the previous year.
BHP said record production and $2.7 billion in cost reductions was offset by lower commodity prices amid slowing global economic growth.
Its bottomline was also dented by one-time charges of $922 million. Annual revenue sank nearly 9 percent to $66 billion.
The company said global supplies of metallurgical coal, copper and iron ore outpaced demand as weaker trade and manufacturing produced below-expectations growth in China.
It said increased supply would continue to drag down commodity prices in the short term but reduced investment in new mines would eventually result in demand catching up.
China’s effort to shift the basis of its economy to services and consumption from exports and manufacturing will be a significant change that unfolds gradually, BHP said.