• Switzerland edition
 
Glencore warns of gloomy outlook
Glencore CEO Ivan Glasenberg (Photo: International Students' Committee)

Glencore warns of gloomy outlook

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

Swiss commodities giant Glencore says its performance in the third quarter was good, but cautioned that there is no sign that global conditions for its business would improve soon.

"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.

Don't miss...X
Left Right

Your comments about this article

Today's headlines
Mega diamond to be auctioned in Geneva
A Sotheby's employee poses for pictures with the "Graff Vivid Yellow," at 100.09 carats one of the rarest yellow diamonds of its size. AFP Photo/Andrew Cowie

Mega diamond to be auctioned in Geneva

One of the world's largest yellow diamonds will go under the hammer in Geneva next month, with the Sotheby's auction house hoping to rake in up to $25 million for the gem. READ () »

Activist jailed for six years in Vasella case
Former Novartis chairman Daniel Vasella. Photo AFP/File

Activist jailed for six years in Vasella case

A British animal rights activist was jailed for six years on Thursday for her part in a Europe-wide campaign of intimidation targeting Huntington Life Sciences, an animal testing company linked to Swiss pharma giant Novartis. READ () »

Zoo faces cruelty charges over cub deaths
Kurt Nünlist was appalled by the deaths of two cubs at the Bern zoo (photo:zvg)

Zoo faces cruelty charges over cub deaths

A Swiss animal lover has filed a legal complaint against Bern zoo, accusing it of cruelty over the deaths of two bear cubs. Dählhölzli zoo could be fined under Switzerland’s tough animal protection laws. READ () »

Germans smuggle cash out of Switzerland
Customs officials found €573 million in illegal money in 2013. Photo: Emilian Robert Vicol

Germans smuggle cash out of Switzerland

The number of Germans smuggling money out of Switzerland rose dramatically last year. Customs officers on the German-Swiss border said on Thursday they made a find in almost every third car they checked. READ () »

Experts challenge e-cigarettes study
Photo: Denis Charlet / AFP

Experts challenge e-cigarettes study

Two Swiss medical organisations have rejected calls to overturn the ban on sales of electronic cigarettes in Switzerland. READ () »

Bern approves solution for Erasmus students
Students intending to go on an Erasmus exchange in 2014-15 will now be able to. Photo: Jirka Matousek

Bern approves solution for Erasmus students

Following the suspension of Switzerland's participation in the Erasmus student exchange programme, on Wednesday the federal government approved plans for a 23 million franc ($26 million) interim solution. READ () »

Kerry bound for Geneva talks on Ukraine crisis
US Secretary of State John Kerry in Geneva last year. Photo: Pool/AFP

Kerry bound for Geneva talks on Ukraine crisis

US Secretary of State John Kerry left on Wednesday for Geneva for high-stakes talks on Ukraine, armed with the threat of more sanctions against Moscow if diplomacy fails, as tensions on the ground escalated sharply. READ () »

Credit Suisse investment bank woes hurt profits
Credit Suisse offices in Zurich. Photo: Credit Suisse

Credit Suisse investment bank woes hurt profits

Swiss banking giant Credit Suisse said on Wednesday that its first quarter net profit took a heavy hit as its investment bank reeled from slumping trading in bonds. READ () »

Ski champion announces same-sex marriage
Sylviane Berthod (right in each of the photos) and her partner. Photos: Facebook

Ski champion announces same-sex marriage

Former Swiss alpine ski champion Sylviane Berthod has announced her engagement to marry another woman in a public way — on her Facebook page. READ () »

UK blocks Swiss deal with EU on Croatia
EU headquarters in Brussels. Photo: Dominique Faget/AFP

UK blocks Swiss deal with EU on Croatia

The UK has scuppered, at least temporarily, an agreement in principle between Bern and Brussels over the free movement of people between Switzerland and Croatia, the Swiss broadcaster RTS says. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Features
Former industrial zone transforms into Zurich’s trendiest spot
Tech
Swiss Solar Impulse team shows off new fuel-free aircraft
International
Suspect in Liechtenstein bank CEO murder case 'likely dead'
Sponsored Article
Caveman comedy comes to Zurich in English
Society
Innovative building provides refuge for hypersensitive tenants
Tech
VIDEO: Teenage boy sends Swiss army knife into stratosphere
International
Switzerland ranks second in world for social progress: report
National
Pharrell Williams set to perform in first Montreux jazzfest concert
Sport
American wingsuit flyer dies after Bernese Oberland accident
Business & Money
H&M plans hefty Swiss minimum wage for employees by 2015
International
Caterpillar accused by US senator of dodging taxes through 'Swiss plan'
International
Geneva man in Facebook page fight with Italian carmaker Ferrari
Advertisement:
International
Schumacher’s wife pays for 'medical suite' at Swiss family mansion
International
Aborted Swiss airlines take-off injures four at London airport
International
Swiss refuse asylum request from topless protest group founder
Business & Money
British expat former banker to head Swiss finance regulator FINMA
National
Swiss honey contains harmful plastic: TV consumer affairs report
Business & Money
Luxury watchmaker Patek Philippe threatens Geneva exit over taxes
Business & Money
World's largest watch fair opens in Basel amid uncertain times
International
'Fergie' credits hikes around Verbier mountains for recent weight loss
Etoiles de Montagne
Sponsored Article
How to summer holiday up a Swiss mountain
Swissbenefits
Sponsored Article
How to avoid Switzerland’s tax haven trap
International
Switzerland's residents are the happiest in the OECD: report
International
Swiss voters support bid to establish lofty minimum wage: poll
National
Switzerland's largest cities set to back regulated 'cannabis clubs'
Business & Money
Franc surges against other currencies on rising Ukraine concerns
Latest news from The Local in Germany

More news from Germany at thelocal.de

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

2,035
jobs available