Fortescue Metals increases profit by 53%

23 Aug 2012, 3:20 pm   -   Source: AAP
Iron ore producer Fortescue Metals Group posted a record full year net profit of $A1.49 billion. (AAP)

Iron ore producer Fortescue Metals Group posted a record full year net profit of $A1.49 billion. (AAP)

Australia's third largest iron ore producer, Fortescue Metals Group, has posted a record full year net profit of $US1.56 billion ($A1.49 billion),

Australia's third largest iron ore producer, Fortescue Metals Group, has increased full year net profit by 53 per cent to a record $US1.56 billion ($A1.49 billion).

The result comes despite falls in the price of the commodity, with Fortescue achieving a record operational result of 55.8 million tonnes shipped.

The Pilbara miner declared an unchanged final fully-franked dividend of four Australian cents per share.

Fortescue's record shipments were up 41 per cent on last year.

Shipments drove the record net profit, and a 41 per cent jump in operating sales revenue to $US6.7 billion ($A6.40 billion) for the year to June 30, from $US5.4 billion ($A5.16 billion).

The latter was offset by a 46 per cent hike in the cost of sales to $US4 billion ($A3.82 billion).

That was driven by an increase in the total material moved, the ramp-up to full rates of production at the Christmas Creek mine and a higher Australian dollar, the company said in a statement on Thursday.

The company spent $US6.1 billion ($A5.83 billion) on capital expenditure compared to $US1.7 billion ($A1.62 billion) for the previous year.

Its guidance indicates it expects to spend another $US6.2 billion in the current year.

More than two-thirds of cap-ex figure went on ambitious plans to nearly triple production to 155 million tonnes a year.

Earnings per share increased 52 per cent to 50.1 US cents.

The company's shares were 10 Australian cents, or 2.4 per cent, higher at $4.25 at 1140 AEST.

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