• Switzerland's news in English
 

Glencore warns of gloomy outlook

Published: 01 Nov 2012 11:37 GMT+01:00

"Overall performance in (the third quarter) was good, despite generally weaker commodity prices," the company said in a statement on Thursday.

Although Glencore, based in Baar in the canton of Zug, did not publish any numbers for its third quarter, it reported solid growth during the quarter, especially in its metals and agricultural products units.

It also hailed the "robustness" in its marketing division, which is in charge of selling commodities on world markets.

Glencore said its industrial activities unit performance meanwhile "reflected lower prices, but nevertheless delivered a sequential and year-on-year overall volume improvement," with particularly strong growth in the energy products sector.

Its thermal coal production, for instance, nearly doubled to 33 million tonnes over the first nine months of its accounting year, while it pumped nearly 17 million barrels of oil during the same period.

Glencore did not say how its oil production compared to the same period a year ago.

In metals, Glencore's zinc production slipped 5.7 percent to 511.9 million tonnes during the first nine months, while copper production fell 16.3 percent to 394.2 million tonnes.

Nickel extraction meanwhile increased 16.1 percent to 25.8 million tonnes over the same period. over the same period.

Glencore also said its agricultural product production grew 11 percent to 5.5 million tonnes.

But the outlook going forward is far from rosy, the company said, pointing out that "we are not assuming any short term material improvement in global macro conditions".

However, the company, which has reserves of around $9.0 billion, said it was "confident that in this environment our business model places us in a strongly competitive position".

Glencore is preparing to merge with another Swiss commodities giant, Xstrata, after the two companies managed at the beginning of October to put aside the differences that had been blocking their union for months.

If the deal passes the final stumbling blocks, the massive new company would be worth $87 billion and capable of out-muscling most other giants in the field.

The two companies' general assemblies are set to meet on November 20 in Zug and should give their stamps of approval before the end of the year.

In order to receive a green light from regulatory authorities, Glencore may decide to exit some of its existing activities, the Financial Times reported.

Amid European Commission concern over the weight the merged company would have in the European zinc market, Glencore is considering backing out of a contract with Belgian-Swiss mining group Nyrstar, which is the world's biggest zinc producer, the British financial daily reported.

Glencore declined to comment on the report.

Your comments about this article

Today's headlines
Switzerland extradites French teen jihadist
Ancient city of Palmyra in Syria now reportedly in the hands of Isis jihadists. Photo: Joseph Eid/AFP/File

Switzerland extradites French teen jihadist

Switzerland has extradited a French teenager who was trying to reach Syria for a second time since March, the federal department of justice said on Friday. READ  

Richemont confirms financial losses cut profit
Photo: Richemont

Richemont confirms financial losses cut profit

Geneva-based Richemont, the world's second largest luxury goods group, confirmed on Friday that its annual net profit fell by more than a third due to losses on financial instruments. READ  

Top court refuses to accept child's two fathers
Photo: Bundesgericht

Top court refuses to accept child's two fathers

Switzerland’s highest court has refused to recognize two Swiss gay men as the legitimate fathers of a four-year-old child who was born to a surrogate mother in the US. READ  

Swiss fail Eurovision Song Contest semifinals
Mélanie René: early exit. Photo: Oscar Alessio/SRF

Swiss fail Eurovision Song Contest semifinals

Switzerland will have to find another “time to shine” after the country’s entry to the Eurovision Song Contest failed to sway voters on Thursday night. READ  

Wawrinka knocked out of Geneva Open in shocker
Photo: AFP

Wawrinka knocked out of Geneva Open in shocker

Argentine Frederico Delbonis knocked top seed and local Swiss favourite Stan Wawrinka out of the Geneva Open tennis tournament on Thursday in a shock result. READ  

Macedonian PM's plane makes forced Zurich stop
Macedonian PM Nikola Gruevski at a rally in Skopje earlier this week. Photo: Robert Atanasovski/AFP

Macedonian PM's plane makes forced Zurich stop

A jet carrying Macedonian Prime Minister Nikola Gruevski made an emergency landing in Zurich on Thursday due to technical problems but no one was hurt in the incident, a spokesman said. READ  

Woman's scoop for news site: 'I killed my husband'
Collonge-Bellerive municipal hall, near where ex-husband was murdered. Photo: Roland Zumbühl/Picswiss

Woman's scoop for news site: 'I killed my husband'

A woman visiting the office of Lugano-based news website in the canton of Ticino jolted staff on Thursday by informing them that she had murdered her husband. READ  

Geneva particle smasher sets energy level record
Photo: CERN

Geneva particle smasher sets energy level record

The world's largest particle smasher broke the record for energy levels in a test run after a two-year upgrade, the Geneva-based European Organization for Nuclear Research (CERN) announced on Thursday. READ  

Four Swiss bathing areas 'unfit' for swimmers
Photo: Sempachseetri

Four Swiss bathing areas 'unfit' for swimmers

Three beaches in Lausanne by the shores of Lake Geneva and an area of the Rhine River in Kaiseraugst in the canton of Aargau have water unfit for swimming, a new European Environment Agency (EEA) study says. READ  

Wawrinka advances to Geneva Open quarters
Photo: AFP

Wawrinka advances to Geneva Open quarters

Top seed Stan Wawrinka continued to fine-tune his French Open preparations with a three-set win over Czech Lukas Rosol on Wednesday to make the last-eight at the Geneva Open tennis tournament. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
Swiss Federal Railways rely on sheep to 'mow' grass alongside tracks
Sport
Switzerland to host 2020 international ice hockey tourney
Business & Money
I never learned German: departing Credit Suisse CEO's regret
Sport
International tennis museum in US showcases Federer hologram
National
Inequality greater than most Swiss think: opinion poll for unions
National
Shooting in Switzerland leaves five dead in domestic drama near Zurich
National
Swiss Federal Railways tackle taboo subject of suicide in bid to cut deaths
National
German expats in Switzerland face discrimination: report
Travel
High prices blunt Swiss tourism's cutting edge: World Economic Forum
Business & Money
Ticked off Rolex slaps Italian Prime Minister Matteo Renzi on wrist
National
Shock and humour drive police safety video warning over 'inattention'
National
Switzerland ranks 13th best place in world for mothers: NGO
Education
Times Higher Education rates EPFL world's top 'young university'
Travel
Switzerland's trains again ranked best for performance in Europe
National
Ten percent of Swiss farmers fail to meet government regulations
National
Municipality of Zermatt bans taking selfies with Saint Bernard dogs
Business & Money
Salt (formerly Orange) aims to shake up Switzerland's mobile market
National
Switzerland tops 2015 world 'happiness index' developed by UN
National
New book: Swiss architect Le Corbusier was 'out-and-out fascist'
Features
Tasty street food catches on in biggest Swiss cities
Sport
Invasion of frogs forces early end to Zurich football game
National
New ranking downgrades the 'power' of Switzerland's passport
Features
Swiss hotel management schools serve up 'world best' recipe
National
Segways win approval for operation on Swiss bicycle lanes
National
Joan Baez and Sting in lineup for this summer's Paléo music festival
National
Second CERN club skier dies from avalanche in Valais Alps
Sport
Lausanne and IOC celebrate a century of Olympism
National
Bern waters down criteria for beer that can be labelled ‘Swiss’
National
Internet giant Google named most attractive employer in Switzerland
National
VIDEO: Swiss television satire clip ridicules Americans on ski slopes
National
Immigration remains top election issue for Swiss voters: opinion poll
National
Environmental bureau ranks Zurich first among Europe's 'sootfree cities'
National
Zurich crane-climbing stunt by teenager flags 'roofer' concerns
Education
THE ranks EPFL among seven 'fastest rising young universities'
Features
Mobility takes off as young urban Swiss catch the car-sharing bug
Business & Money
Ethical Coffee Company aims to beat Nespresso in home market
National
Use of temporary staffing continues to rise in Switzerland
Features
Six steps for expats to get along better with the Swiss
National
Swiss foreign affairs minister touted as candidate for top UN job
National
One of Switzerland's most celebrated artists dies in Lucerne at 106
Business & Money
Swiss luxury brand Tag Heuer announces plans for smartwatch
National
Valais lights up 13 mountain peaks for 200th anniversary
Business & Money
Switzerland to avoid recession this year: Credit Suisse forecast
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

4,454
jobs available