• 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
Greece crisis
Greece 'wants tax assets hidden in Swiss banks'
Photo: Leon Neal / AFP

Greece 'wants tax assets hidden in Swiss banks'

Athens wants a tax amnesty deal for Greeks who have stashed cash in Swiss banks, in a bid to bring much-needed revenue to the debt-laden country, a Swiss newspaper reported on Sunday. READ  

Federer through to the last 16 of Wimbledon
Federer on his way to victory over Groth. Photo: Tim Ireland/AP

Federer through to the last 16 of Wimbledon

Seven-time champion Roger Federer defeated big-serving Australian Sam Groth to reach the Wimbledon last 16 on Saturday. READ  

Swiss cut bus and train fares as ozone spikes
Revellers throw water during a "giant water battle against the heatwave" in Lausanne. Photo: Fabrice Coffrini/AFP

Swiss cut bus and train fares as ozone spikes

Regional authorities in Switzerland temporarily cut bus and train fares Saturday to encourage people to leave their cars at home, as a scorching heatwave sent ozone pollution levels soaring. READ  

Solar Impulse 2 reaches Hawaii to make history
Pilots Bertrand Piccard (L) and Andre Borschberg, celebrate after Borschberg landed at Kalaeloa Airport, Hawaii, on Friday. Photo: Eugene Tanner / AFP

Solar Impulse 2 reaches Hawaii to make history

The Solar Impulse 2 aircraft completed a historic flight in its quest to circle the globe without consuming a drop of fuel, touching down gracefully in Hawaii on Friday after the most arduous leg of its journey. READ  

Wimbledon 2015
Verdasco victory sends Wawrinka to fourth round
Photo: Justin Tallis/AFP

Verdasco victory sends Wawrinka to fourth round

Switzerland's Stan Wawrinka reached the fourth round of the Wimbledon tennis tournament on Friday with a 6-4, 6-3, 6-4 win over Spain's Fernando Verdasco. READ  

Solar Impulse 2 nears Hawaii on historic flight
Borschberg in the cockpit of the solar plane. Photo: Solar Impulse

Solar Impulse 2 nears Hawaii on historic flight

After more than four and a half days of flying across the Pacific and setting a record for solo flight, Switzerland’s Solar Impulse 2 airplane was set to arrive in Hawaii on Friday on its epic journey around the world. READ  

Sponsors will flee Fifa without reforms: lawyer
Photo: AFP

Sponsors will flee Fifa without reforms: lawyer

A former top Fifa official who left after criticizing its president Sepp Blatter has warned that big sponsors will start leaving world football's Zurich-based governing body unless major reforms are undertaken. READ  

Commuters stuck in trains without electricity
Photo: Kecko

Commuters stuck in trains without electricity

Heat took its toll on morning rail commuters on Geneva-Lausanne and Olten-Zurich routes on Friday as trains were blocked due to problems with overhead electrical wires. READ  

Swiss baby boom boosted by immigration
Photo: AFP/Getty Images

Swiss baby boom boosted by immigration

Switzerland is bucking the trend in the rest of Europe with a rising birth rate bolstered by immigration, new federal figures show. READ  

Glider pilot dies in Swiss junior championships
Glider (not the one involved in the crash) prepares to land. Photo: Paul Haliday

Glider pilot dies in Swiss junior championships

A 25-year-old man died after the glider he was piloting in a competition crashed in the municipality of Klosters in the canton of Graubünden, police said on Thursday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
National
National weather office extends danger alerts as heatwave takes hold
National
Most severe heatwave in Switzerland since 2003 on the way
Travel
Bogglingly expensive Geneva club sandwiches remain 'priciest in world'
Politics
Anti-immigration nationalist party remains most popular: poll
National
Greek finance minister slams Swiss over lack of tax evasion info
Business & Money
Insects proposed for sale in Swiss supermarkets next year
Sponsored Article
Geneva's revolutionary marketing education
National
'Oh God — I'm coming': noisy lovers' complaint goes public
National
Canton of Ticino threatens closing Italy border to asylum seekers
Sponsored Article
Swiss chocolate with a story: Blondel
National
Just in case: Swiss National Bank prepares for Grexit 'crisis'
National
Russian crisis fuelled by sanctions threaten 40,000 Swiss jobs: study
National
Art Basel: Art for art's sake — or to make an investment?
National
New survey ranks Zurich Europe's priciest city for expatriates
National
Quarter of residents in Switzerland 'have multiple homes'
Features
Veggie lovers and 'flexitarians' challenge Swiss meat-eating habits
National
Forest officials struggle to save Switzerland's dying ash trees
Education
Historian finds ancient Egyptian papyrus texts in Basel uni library
National
Seven large Swiss employers back 'flexible work' charter
National
Basel police rescue of ducks forces closure of A2 motorway
National
Mother and daughter die as rain storms lash central Switzerland
Sport
'Stan the man' Wawrinka: French Open triumph 'completely crazy'
Culture
Expat's Zurich 'then and now' video shows how little the city has changed
National
Phoney Geneva police officers rob tourists and UN staff
Sport
Blatter's abrupt resignation seen as a 'stunning capitulation'
Features
Cleanup crews head to ski resorts to keep Swiss mountains tidy
Culture
Interlaken museum showcases works by Picasso using Caran d'Ache pencils
National
Low interest rates give tenants right to seek rent reductions in Switzerland
Sport
Switzerland's Blatter fends off critics to win fifth term as Fifa president
National
Agricultural researchers discover why Swiss cheese has holes
Culture
Swiss filmmaker returns home to shoot 'gender-fluid' film in Ticino
Features
Severed rope recalls Matterhorn's first ascent 150 years ago
National
Top Swiss court refuses to recognize child's two gay 'fathers'
National
Woman's scoop for Ticino online news site: 'I killed my husband'
National
Four Swiss bathing areas 'unfit' for swimmers: Euro environmental body
Technology
Scientists from Zurich university find craters beneath Lake Neuchâtel
National
Prince William in Switzerland backs fight to protect endangered species
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
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

4,367
jobs available