Brazil’s Vale Q3 profit misses estimate on impairment, lower iron ore prices

RIO DE JANEIRO (Reuters) – Brazilian miner Vale SA reported on Thursday a third-quarter net profit of $3.9 billion, significantly below analysts’ forecasts of $6.2 billion, due to lower iron ore prices and an impairment at its coal business.

While Vale’s net income fell by almost half from the previous quarter, it surged 34% when compared with a year-ago period.

Vale, one of the world’s biggest iron ore miners, said its quarterly numbers were dented by iron ore prices that plunged 31% in the reported period, as well as a labor disruption at its Sudbury nickel mine in Canada that led to a hit in production.

The miner said it had an impairment charge in its coal business that totaled almost $2 billion, but did not give further details.