Glencore Xstrata in $7.4bn loss

March 05, 2014 - 12:46:58 am
ZURICH: Mining giant Glencore Xstrata plunged deep into the red in 2013 with a net loss of $7.4bn from a profit of $1bn  a year ago, after booking massive writedowns related to its merger.

The group said in an earnings statement yesterday it took a charge of $7.5bn during the year to write down goodwill or intangible assets that were now valued at a lower rate than when they changed hands. The impairment charge also included write-downs at various sites amid the “persistent challenging nickel and aluminium market environments”.

Swiss commodities trader Glencore and mining giant Xstrata merged on May 2, a transaction that propelled it to become one of the world’s biggest players in the commodities market alongside firms like Brazil’s Vale, British-Australian BHP Billiton and British-Australian Rio Tinto.AFP