Kumba revenue increases

DURING a year in which poor results and gloomy outlooks are the norm, Kumba Iron Ore delivered a 22percent increase in headline earnings to R3,4billion in the six months to June and remains on track to deliver 10percent growth for 2009.

DURING a year in which poor results and gloomy outlooks are the norm, Kumba Iron Ore delivered a 22percent increase in headline earnings to R3,4billion in the six months to June and remains on track to deliver 10percent growth for 2009.

The second half will reflect the effect of lower commodity prices and a stronger rand.

Chief executive Chris Griffith said the group produced a strong financial and operational performance, reflecting its "strength as a pure play iron ore supplier". Production at its Sishen mine was up 14percent and export volumes increased 29percent as low volumes to Europe and Japan were more than offset by strong volumes to China.

Revenue grew 33percent to R12billion and operating profit was 31percent higher at R6,8billion.

Results were achieved at a time when the steel industry, to which it supplies, is in a severe downturn.- Marcia Klein

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