BHP boosts FY11 profit 85.9%

BHP boosts FY11 profit 85.9%

BHP Billiton (ASX:BHP) lifted its net profit 85.9% in FY11 to US$23.6 billion ($31.1 billion), and has revealed it expects demand for commodities to stay robust in the months ahead.

The company reported revenue of $71.73 billion for the year ending in June, up 35.9% from a year earlier.

Underlying ebitda grew 51% to a record US$37.1 billion, while ebit margin improved to 47%.

In its annual report, BHP Billiton said it had seen record annual production levels across four commodities and ten operations.

But it warned that it will have to deal with tight labour and raw material markets, coupled with the devaluation of the US dollar, in the coming months. Costs could also increase, the report states, as they tend to lag commodity prices.

BHP Billiton expects robust demand for commodities in the short and medium term, although it added that the strong pace in demand for raw steelmaking materials is expected to slow over the longer term.

The company raised its final dividend for the current period to 55 US cents from 45 US cents per share.

BHP shares stayed flat on Wednesday at $38.210.

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Tags resourcesfinancial resultsBHP BillitonGuidanceASX:BHP

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