Australia's Fortescue Metals Group Reported 40% Profit Fall in First-Half

Australia’s Fortescue Metals Group, the world’s No.4 iron ore producer ranks behind Rio Tinto, Vale and BHP Billiton, reported 40% profit fall in first-half.

Iron ore price fell sharply and costs rose as it ramped up production to feed Chinese steel mills result in its largely profit loss.

The net profit was at US$478 million for the six months ended December, compared with the figure of US$$801 million a year ago.

Fortescue Chief Executive Nev Power said that a record operational result of a 32% rise in shipments to 35.7 tons for the half-year had partly offset price volatility.

Meanwhile, shares were down 1.8% to AUD5.09.