Glencore profits down as it extends Xstrata merger completion date

COMMODITIES giant Glencore this morning posted a 25 per cent drop in net income, as it extended the completion date for its merger with Xstrata.

Net income before significant items fell to $3.06bn (£2.02bn) over the full year, down from $4.06bn in 2011 and in line with forecasts.

Including the impact of an impairment related to a reclassification of its holding in Russian aluminium producer Rusal, however, the net income fell 75 per cent.

Chief executive Ivan Glasenberg welcomed the “robust” results, despite a “lacklustre year” for commodities, with prices down between 10 to 20 per cent year on year.

Operating profit from its trading division rose 11 per cent, which helped offset a drop in overall adjusted operating profit of 17 per cent.

Xstrata, reporting separately from Glencore before the two companies complete their record tie-up, was also hit by impairments that dragged its net profit down 79 per cent.

Separately, both firms confirmed that the completion date for the merger has been extended to 16 April. Glencore is still awaiting Chinese regulatory approval, having been given the green light from European and South African regulators.