PEG ratio of 0.4 might be tempting, but investors will probably be wise to ignore its siren call. Based on current consensus estimates, analysts project a 5% drop in earnings for 2013 and a 12% drop in 2014. And those estimates have been declining for several months. It's very unlikely that Vale can compound its earnings at an average of more than 20% from here when earnings are expected to decline this year and next.
There consolidating and cutting costs you dummy! I guess you haven't been paying attention to all their recent divestiture sales.This is being done to focus on their core business,and boost profits immediately!!