Core change

10 March 2010 By Una Galani Follow @ugalani

The Swiss trader saw earnings fall 43 percent last year and has warned of a volatile recovery. With Glencore looking to an IPO, the statement is hardly auspicious. But one set of mixed results shouldn’t derail Glencore’s needed transformation to a new structure.

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Glencore on March 10 warned of a volatile recovery as it reported a 43 percent fall in 2009 net profit due to lower commodity prices in the first half of the year.

The privately held Swiss trading and mining group said net debt, taking into account readily marketable inventories, decreased to $10.2 billion from $11.5 billion.

Glencore also confirmed its intention to make asset disposals of at least $1 billion over the next 36 months.

Glencore last week exercised an option for $2.25 billion to buy back its Prodeco coal operations from Xstrata and confirmed it was seeking a partner to help finance the deal.

In December, Glencore issued a $2.2 billion in convertible bonds, due to convert in 2014, valuing the group at more than $35 billion.

Glencore describes the issue "as part of its overall strategy of moving towards the public equity markets".

Context News

Glencore on March 10 warned of a volatile recovery as it reported a 43 percent fall in 2009 net profit due to lower commodity prices in the first half of the year.

The privately held Swiss trading and mining group said net debt, taking into account readily marketable inventories, decreased to $10.2 billion from $11.5 billion.

Glencore also confirmed its intention to make asset disposals of at least $1 billion over the next 36 months.

Glencore last week exercised an option for $2.25 billion to buy back its Prodeco coal operations from Xstrata and confirmed it was seeking a partner to help finance the deal.

In December, Glencore issued a $2.2 billion in convertible bonds, due to convert in 2014, valuing the group at more than $35 billion.

Glencore describes the issue "as part of its overall strategy of moving towards the public equity markets".

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