Vale posts a US$ 3.5 billion net earnings in the third quarter, up 120% from the same period of last year

About Vale


Vale posts a US$ 3.5 billion net earnings in the third quarter, up 120% from the same period of last year

Watch: our CFO comments on the 3Q13 results

Higher sales and lower costs were the main factors behind the excellent results achieved by Vale in the third quarter of 2013. The company obtained net earnings of US$ 3.5 billion, about 8 times higher than in 2Q13 and around 120% superior than in the same period of last year.

We had an EBTIDA (a measure of cash flow generation) of US$ 5.8 billion in the quarter and US$ 16 billion in the 9 months of the year, which is 9% greater than the EBTIDA for the same period of 2012. “This result was achieved thanks to a combination of very positive factors, in terms of production volumes and costs reduction, what led to a greater cash generation,” said Vale’s Chief Financial Officer (CFO), Luciano Siani. Watch the video in which Siani analyses the quarterly results.

Production records: Vale has second best ever quarter in iron ore

Sustaining our position as global leader in iron ore production, we had the second best quarter in our history in terms of volume. Our iron ore output in 3Q13 was nearly 86 million metric tons. Our production in Carajás was particularly strong, up 36% from the second quarter of 2013.

Vale also achieved record output of copper and gold – almost 95,000 metric tons and 75,000 ounces, respectively. In the following infographic, you can see where our mines and pellet plants are located across the world and you can find out more about the minerals we produce.

Lower costs and higher cash generation allow Vale to maintain robust investment plan

The combination of high quality with low operational costs remains one of our most important competitive advantages in the global market. We are working to build an extremely efficient, with very low corporate, operational and investment costs, which is presenting significant results. In this quarter, our total costs fell by 7% when compared with the first nine months of 2012, representing a cash saving of US$ 2 billion for the company. In the year to date, Vale has generated US$ 16 billion in cash, around 9% more than in the same period of 2012. “We believe the company is extremely well positioned even in a challenging and uncertain environment to continue generating good results for shareholders and continuing growing with a very focused investment program,” said Siani.

Download do Relatório Financeiro 3T13 Download do Relatório de Produção 3T13

Vale’s operations

We are the biggest world iron ore and pellets producer and the second biggest nickel producer. We also produce manganese, ferroalloys, coal, copper, gols, silver, cobalto, potassium and other fertilizers. In order to maintain this performance, we have mines in 15 of the 33 countries where we are present. In some countries we have commercial offices, while in others we are developing mineral exploration projects or other projects to build our future. Click on the ores and find out where our mines around the world are located.


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Vale posts a US$ 3.5 billion net earnings in the third quarter, up 120% from the same period of last year