COMMODITIES trader Glencore yesterday warned of a cautious outlook, as it reported a strong performance in its marketing division.
Glencore, currently in the final throes of a $56bn (£35bn) mega merger with mining giant Xstrata, said in a trading statement that overall performance in the third quarter was “good”, despite weaker commodity prices and tough economic conditions that will not improve in the short term.
It said of its marketing – or trading – division, which accounted for just over a third of profit last year, that the outlook for the remainder of the year remained positive, based on “generally accommodating supply/demand conditions”.
In its industrial arm, production at its Kazzinc division – in which Glencore upped its stake to 69.91 per cent last month – rose 18 per cent year on year.
Shares closed up 0.38 per cent yesterday at 344.95p.