December 03, 2008
Vale posts 62.9% YoY surge in 2007 earnings
Worlds biggest iron ore miner Brazilian Companhia Vale do Rio Doce has completed in 2007 the fifth consecutive year of extraordinary growth in its activities. This process was sustained by continuous improvement in operational and financial performance, greater diversification of its asset portfolio and globalization of its operations.
In 2007 Vale broke nine different production records
1. Iron ore - 296 million tonnes
2. Pellets - 17.6 million tonnes
3. Finished nickel - 247,900 tonnes
4. Copper - 284,200 tonnes)
5. Bauxite - 9.1 million tonnes
6. Alumina - 4.3 million tonnes
7. Aluminum - 551,000 tonnes
8. Kaolin - 1.3 million tonnes
9. Cobalt -2,500 tonnes
Financial performance
| | 2006 | 2007 | Change |
| Gross revenues | 25714 | 33115 | 28.8% |
| Adjusted EBIT | 9361 | 13194 | 40.9% |
| Adjusted EBIT margin (%) | 37 | 41 | 9.3% |
| Adjusted EBITDA | 11451 | 15774 | 37.8% |
| Net earnings | 7260 | 11825 | 62.9% |
| CAPEX | 4824 | 7625 | 58.1% |
In million USD
Item wise sales
| Item | 2006 | 2007 | Change |
| Iron ore | 250,667 | 262,687 | 4.6% |
| Pellets | 25354 | 33,670 | 24.7% |
| Manganese ore | 779 | 708 | -10.0% |
| Ferro-alloys | 522 | 488 | -7.0% |
| Nickel | 272 | 268 | -1.3% |
| Copper | 276 | 300 | 8.2% |
| Kaolin | 1,323 | 1,215 | -8.9% |
| Potash | 733 | 674 | -8.8% |
| Precious metals (oz) | 2,514 | 2,283 | -10.1% |
| PGMs (oz) | 373 | 345 | -8.2% |
| Cobalt (metric ton) | 2,091 | 2,494 | 16.1% |
| Aluminum | 485 | 562 | 13.7% |
| Alumina | 3,221 | 3,253 | 1.0% |
| Bauxite | 952 | 1,358 | 29.9% |
| Metallurgical Coal | - | 1,894 | |
| Thermal Coal | - | 603 | |
| Railroads (million ntk) | 26,714 | 27,500 | 2.9% |
Destination wise sales
| Region / Country | 2006 | Share | 2007 | Share |
| Americas | 73,937 | 26.8% | 73,130 | 24.7% |
| Brazil | 58,918 | 21.3% | 58,647 | 19.8% |
| Steel mills and pig iron | 36,448 | 13.2% | 38,100 | 12.9% |
| JVs pellets | 22,470 | 8.1% | 20,547 | 6.9% |
| USA | 4,432 | 1.6% | 3,655 | 1.2% |
| Others | 10,587 | 3.8% | 10,828 | 3.7% |
| Asia | 123,326 | 44.7% | 141,568 | 47.8% |
| China | 75,673 | 27.4% | 94,521 | 31.9% |
| Japan | 27,921 | 10.1% | 27,459 | 9.3% |
| South Korea | 10,530 | 3.8% | 10,440 | 3.5% |
| Others | 9,202 | 3.3% | 9,148 | 3.1% |
| Europe | 68,334 | 24.8% | 72,996 | 24.6% |
| Germany | 22,043 | 8.0% | 22,781 | 7.7% |
| France | 11,198 | 4.1% | 11,038 | 3.7% |
| Belgium | 6,590 | 2.4% | 6,381 | 2.2% |
| Italy | 8,058 | 2.9% | 9,320 | 3.1% |
| Others | 20,445 | 7.4% | 23,476 | 7.9% |
| Rest of the World | 10,424 | 3.8% | 8,663 | 2.9% |
| Total | 276,021 | 100.0% | 296,357 | 100.0% |
In the last five years Vale has invested USD 40.7 billion, of which USD 20.6 billion in acquisitions and USD 20.1 billion in maintenance of operations, research and development and project execution.
The completion of twenty large projects, successful acquisitions and increased productivity were responsible for an expansion of our total output at an average annual rate of 11.6% between 2003 and 2007. In parallel to this quantitative growth, nickel, copper, metallurgical and thermal coal, platinum group metals and cobalt were added to our portfolio.
