Glencore’s profits drop

GLENCORE Xstrata has written down the value of assets inherited from miner Xstrata by $7.7bn. The company announced a nine per cent drop in core profit, in the first set of full results since the commodities group was created.

Glencore said its half-year adjusted core profit - earnings before interest, tax, depreciation and amortisation - totalled $6bn, at the higher end of analyst estimates, compared to a pro forma $6.6bn a year ago.

Glencore, which completed its record-breaking acquisition of miner Xstrata in May, said progress on the integration of the group was exceeding expectations, with achievable cost savings and synergies likely to be “materially in excess” of previous guidance of $500m per year.