Glencore’s 2008 profit takes dive due to ‘severe’ crisis

Glencore International AG's net income fell 8.5 percent last year as the Swiss trading house faced "the most severe crisis in decades." The company's net income, excluding exceptional items, dropped to $4.8 billion in 2008 from $5.2 billion in the previous year, it said. Low prices in its markets—which include copper, aluminum and other metals, as well as oil and coal—caused it to make exceptional provisions of $3.7 billion for asset impairments, provisional pricing and inventory write-downs, it said. "Against the backdrop of the most severe crisis facing the global economy in decades, Glencore achieved a highly credible set of results, confirming its unique and highly diversified business model," the company said.