Glencore Fiscal Year Net Income Up 39% As Metal, Mineral Prices Rise

Swiss commodities group Glencore International AG reported a 39% rise in full-year net income before exceptional items due to a strong performance in both its industrial and marketing divisions stemming from better commodity prices.

Net income excluding exceptional items was $3.80 billion last year, compared with $2.72 billion during the same period a year earlier, Glencore said.

Revenue was up 36.3% to $144.98 billion from $106.36 billion.

Meanwhile earnings before interest and taxes and exceptional items, or Ebit, rose 60% to $5.29 billion. The contribution from industrial assets was up 72% to $2.95 billion. The contribution from marketing activities was up 47% to $2.34 billion.

Privately-owned Glencore said the largest contribution to Ebit was in the metals and minerals segment, which benefited from stronger metals prices and improving market sentiment in end-user industries such as automotives and construction.

Its balance sheet is underpinned by cash and undrawn bank facilities of about $4.22 billion at year-end. Net debt was $14.8 billion but coverage ratios improved, the company said.

The Baar, Switzerland-based group is considering listing its shares in London and Hong Kong sometime in the second quarter of this year. Glencore set in motion the possibility of an initial public offering when it issued a $2.2 billion convertible bond at the tail end of the global financial crisis.

-By Alex MacDonald, Dow Jones Newswires; 44 20 7842 9328; alex.macdonald@dowjones.com

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