Glencore sticks to guns on Xstrata deal as profits fall

Glencore has been hit by falling commodity prices, reporting a drop in pre-tax earnings of a quarter in the first half of the year, but will forge ahead with Xstrata merger plans despite a challenging backdrop.

In its interim results, the commodities broker reported a 24% fall in adjusted earnings before interest and taxes (EBIT) to $2.5bn, partly due to lower metal prices. Earnings per share fell 42%, although revenues were up 17% to $108bn, while total assets climbed 9%. Net income was 26% lower at $1.8bn compared to H1 2011. Analysts had expected Glencore to post net income of $1.6bn, down a third on the $2.4bn reported for the first six months of 2012. Similarly, underlying profits before interest and taxes were forecast to slip from $3.3bn to $2.4bn. The firm will pay an an interi...