Vale profits surge 74%

Vale (VALE.NYSE, 6210.HK, VALE.Euronext, XVALO.BMAD), the world’s largest iron ore producer, reported a 74% jump in second-quarter earnings from a year ago on strong global iron ore prices, which boosted its dividend by US$3 billion, Reuters reported. However, the company’s profit figures were less than expected, due to rising costs of labor and fuel – the latter of which has increased 39% year-on-year. The company has faced numerous project delays and a highly competitive bidding field for new acquistions, which has left it short of investment targets in recent months. “Vale’s strong cash generation, its excellent operational perspectives allow it to finance growth opportunities while simultaneously providing shareholder returns,” the firm said in a press release on the dividend issue.