BHP Billiton Profit Up 28% On China-Driven Prices

BHP Billiton posted a record annual profit and said the current turmoil on global financial markets poses no threat to the China-driven commodities boom that is underpinning its growth. BHP’s net profit for the year ended June 30 increased to $13.42 billion - a fourth consecutive record annual result for the world’s biggest miner - from $10.45 billion a year earlier. The Melbourne-based company continues to reap the benefits of commodity prices driven higher by surging Chinese demand and is also managing to keep a lid on the cost pressures that are affecting the overheated global mining industry. Underlying profit excluding exceptional items - a measure closely watched by investors and analysts - was $13.68 billion, at the upper end of market forecasts, which had ranged from $13.3 billion to $13.85 billion. Revenue for the year climbed 21% to $47.47 billion from $39.110 billion a year earlier. All but two of BHP’s nine major business units recorded stronger results, with Stainless Steel Materials’ pretax profit more than trebling because of higher nickel prices.