BHP Profits Have Missed The Market's Already Downbeat Expectations

Photo: Getty Images

BHP Billiton’s full-year profit fell 29.5% to $US10.9 billion on weak commodity prices, higher taxes and financing charges.

The result, which came after close of trading today, missed the market’s expectation of a $US12.6 billion profit, down from $US15.4 billion last year.

BHP said the 12 months to 30 June was a period “characterised by slowing global growth and volatile commodity markets”, highlighting China’s economic slowdown in particular.

It committed to limiting capital and exploration expenditure in 2014 to $US16.2 billion, including a new three-year investment in the Jansen Potash Project expected to cost a total of $US2.6 billion.

CEO Andrew Mackenzie said the company aimed to boost productivity by optimising its supply chain and simplifying the organisation.

Miners have had a tough time this year. Economists say the Australian mining boom is coming to an end.

Earlier this month, Rio Tinto revealed that its half-year profit fell 71% to $US1.72 billion, missing analyst expectations by about $US2.5 billion.

BHP shares fell 1.35% to $36.54 today, in the lead up to the full-year results announcement.

Follow Business Insider Australia on Facebook and Twitter

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.