Glencore shares slide further after 32 percent profit drop

Glencore shares slide further after 32 percent profit drop

Shares in mining giant Glencore (LON:GLEN) fell on Tuesday after announcing its biggest profit drop since floating on the stock market in 2011.

The Swiss-based company saw earnings fall 32 percent to $8.7 billion, after writing down assets by $5.8 billion, and net income plunge 69 percent to $1.34 billion.

The company remained positive, with CEO Ivan Glasenberg saying after the statement was released that they are confident commodity prices have bottomed, and sales into China are looking “pretty good.” However, Glencore have been hit hard over the last year as commodities have collapsed, and are now seeking to reduce debt by selling assets and cutting their dividend.

When Glencore listed on the London market in 2011 it priced its shares at 530p, but has since seen shares slide far below its IPO. On Tuesday its stock fell a further 1.7 percent on the London market, before regaining ground to trade up 1.95 percent at 135.70 (0843GMT).

01/03/2016