BHP Billiton Ltd. (BHP.AU) said Wednesday its full year net profit fell 61.8% to US$5.88 billion from US$15.39 billion last year, breaking a run of six consecutive record annual results for the world's biggest miner as a slump in commodity prices took its toll.

However, the profit came in slightly ahead of market expectations and the mining giant has eschewed any capital management to build on the balance sheet strength that marks it out from its peers.

BHP posted attributable profit excluding exceptional items for the 12 months ended June 30 of US$10.72 billion, down from US$15.37 billion in fiscal 2008 but ahead of average analyst forecasts for US$10.2 billion.

The miner said the stimulus policies of the Chinese Government have provided strong support to short-term economic growth but there remains uncertainty about global economic growth.

"Structural economic problems will take time to correct and may hold back growth over the medium term," the miner said in a statement.

Commodities demand from developing nations remains constrained, BHP said, but a brighter outlook has emerged recently in some markets.

Commodity restocking in China appears to be complete and demand from China is now expected to more accurately reflect real end-user purchasing, BHP said.

There was emerging evidence of demand improving in North America, Europe and Japan although it was too early to tell if this was due to restocking or real demand.

In the long term, BHP said it continues to expect strong growth in demand for the commodities it produces.

"With reduced capital investment over the past year, supply may struggle to keep pace with demand in the medium term when growth recovers," the miner said.

BHP's revenue for the year fell 15.6% to US$50.21 billion from US$59.47 billion in 2008 and BHP posted a final dividend of 41 U.S. cents a share, unchanged from last year and in line with analyst expectations.

Base metals underlying EBIT fell 83.8% on year to US$1.29 billion, aluminum earnings slumped 86.9% to US$192 million and stainless steel materials earnings tumbled 167% to a loss of US$854 million.

But this was partially offset by higher prices won for bulk materials, with iron ore earnings rising 34.5% to US$6.23 billion and metallurgical coal earnings rising five fold to US$4.71 billion.

Costs increased by US$2.5 billion on the prior year as the miner cut volumes in response to falling demand.

Significant items ate into the headline profit, including an impairment charge of US$3.62 billion on the Ravensthorpe mine in Western Australia, which BHP closed after sagging nickel prices hit margins.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; alex.wilson@dowjones.com