• Switzerland's news in English
 

Glencore warns of gloomy outlook

AFP · 1 Nov 2012, 11:37

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
Tram kills Canadian tourist in Zurich crossing
The streetcar involved was a tram 2000 similar to the one pictured here. Photo: VBZ

Tram kills Canadian tourist in Zurich crossing

2 hours ago

Zurich city police are looking for witnesses after a 56-year-old Canadian woman visiting Switzerland was struck and killed by a streetcar on Monday.

Iconic Swiss train heads to Swedish museum
Photo: SBB

Iconic Swiss train heads to Swedish museum

11 hours ago

One of Swiss Federal Railways (SBB) emblematic locomotives headed out of the country on Monday for a final trip — to a transport museum in Sweden.

Seven climbers and hikers die in Swiss Alps
View of the Täschhorn near Saas Fee. Photo: Valais cantonal police

Seven climbers and hikers die in Swiss Alps

15 hours ago

At least seven people died in the Swiss Alps while climbing or hiking at the weekend, police report.

Alpine dam disaster remembered 50 years on
Aerial view of Mattmark dam. Photo: Switzerland Tourism

Alpine dam disaster remembered 50 years on

1 day ago

More than 1,000 people gathered at the Mattmark hydro dam in the canton of Valais Alps on Sunday to commemorate the 50th anniversary of a natural disaster that killed 88 workers, including 56 Italians.

Migrant crisis
Swiss pledge help for Balkans on refugee crisis
A Syrian couple waits with other migrants for the train near a train station in Macedonia. Photo: Aris Messinis/AFP

Swiss pledge help for Balkans on refugee crisis

1 day ago

Switzerland said on Sunday it was planning to send financial assistance to help Balkans nations cope with the massive numbers of migrants and refugees passing through in a bid to reach the European Union.

One million throng Zurich techno party
Photo: Verein Street Parade, Zurich

One million throng Zurich techno party

1 day ago

Around one million people thronged the streets of a sun-drenched Zurich on Saturday to take part in the city's annual techno Street Parade, organizers said.

Migrant crisis
Swiss join bid to combat refugee smuggling
Forensic officers work at a truck found to contain dead migrants on a motorway in Austria on Thursday. Photo: Dieter Nagl/AFP

Swiss join bid to combat refugee smuggling

3 days ago

Switzerland, Germany and Italy are preparing to launch a joint task force to detect and dismantle networks smuggling refugees and migrants into Europe, Swiss authorities said on Friday.

Nestlé accused in US of 'slave labour' cat food
Nestlé headquarters in Vevey in the canton of Vaud. Photo: Nestlé

Nestlé accused in US of 'slave labour' cat food

3 days ago

UPDATED: Swiss-based food giant Nestlé on Friday rejected allegations that it had knowingly allowed its Fancy Feast cat food to contain fish from a Thai supplier suspected of using slave labour.

Swiss economy shows surprising growth in Q2
The Swiss economy continues to show resilience. Photo: Mike Chapman

Swiss economy shows surprising growth in Q2

3 days ago

Domestic spending kept Switzerland’s economy expanding in the second quarter as government figures released on Friday showed a surprise upturn in growth.

Italian base jumper dies in Bernese Oberland
Base jumpers in Lauterbrunnen in the canton of Bern. Photo: AFP

Italian base jumper dies in Bernese Oberland

3 days ago

A 46-year-old Italian plunged to his death in the Bernese Alps Thursday after crashing onto rocks during a base jump, the latest in a series of such accidents in Switzerland in the past year, police said.

RECEIVE OUR NEWSLETTER AND ALERTS

National
Switzerland set to test world's longest train tunnel under the Alps
National
US right-wing think tank: Swiss are freest people in Europe
National
Bottoms up: new signs alert visitors to Zurich's nudist bathing zones
Sport
Swiss man smashes cliff jumping record with 59-metre dive
National
Climate change seen as plus for Switzerland's wine growers
Photo: Federal Housing Office
National
Buying home in Switzerland is 'cheaper than renting'
National
Central bank to launch new high-tech banknotes — six years late
National
Swiss speed climber summits all 4,000m peaks in the Alps
National
Report: Switzerland is world's safest country (barring extreme sports)
National
Where are the top ten spots to visit in Switzerland for tourists?
National
Two Japanese climbers found dead after scaling Matterhorn's summit
National
High Geneva accommodation costs force unpaid UN intern to live in tent
National
Zurich farmer ordered to remove cow bells after noise complaints
National
Gays file criminal complaint against Swiss bishop over speech
National
The Expat Guide: Moving to Switzerland
National
Briton who ends life in Switzerland: 'Ideal shelf life for people is 70'
National
Aargau farmer under fire after pigs gassed to death by own excrement
National
Cows trample German woman to death in Graubünden Alps
National
Hot times: Swiss city to host first naked performance festival
Features
Expat American author's time in Zurich inspires racy bestseller
National
10 amazing places to be on Swiss National Day — or any other day
National
Swiss army pilfers water from French lake for cows in Switzerland
National
Swiss Army airlifts water to thirsty cows facing drought conditions
International
Canary Islands: diver killed in collision with Swiss windsurfer
National
VIDEO: Seagull steals camera for amazing bird's eye selfie
Switzerland celebrates first ascent of Matterhorn
Politics
Immigrant recruits may not be loyal: Swiss defence minister
Solar Impulse 2 round-the-world flight halted for repairs
Society
Teenager gets high on vegetarian meal at Zurich club
National
Greece seeks tax revenues from assets 'hidden' in Swiss banks
Culture
Paris police arrest Swiss artist for naked Eiffel Tower selfies
National
Scientists uncover largest Swiss dinosaur skeleton ever found
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
National
'Oh God — I'm coming': noisy lovers' complaint goes public
National
Canton of Ticino threatens closing Italy border to asylum seekers
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?
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

4,347
jobs available