Glencore profit hit by $7.6 billion Xstrata charge

Glencore profit drop comes on $7.6 billion write down following Xstrata takeover

Associated Press

GENEVA (AP) -- Commodities trader Glencore Xstrata Plc has reported a 39 percent drop in half-year profits as it booked a $7.6 billion write-down of assets following the merger of Glencore and Xstrata this year.

The Swiss-based company, which supplies raw materials around the world and operates mines, plants and warehouses, said its net income slid to $2.04 billion from $3.36 billion from a year earlier.

Glencore Xstrata said in its financial statement Tuesday that the write-down reflected "the broader negative mining industry environment" during the January-to-June period.

The merger of Glencore and Xstrata created a company that controls a chain of businesses from mining to refining, storage and shipping of basic commodities like coal, copper and corn.

View Comments (0)