Vale cuts dividend more than forecast. Vale SA, the world's largest iron-ore producer, will reduce dividends more than analysts estimated this year as prices for the steel-making ingredient are expected to hover near six-year lows. The Rio de Janeiro-based company will pay at least $2 billion in dividends this year, down 52 percent from the $4.2 billion disbursed in 2014, Vale said in a statement Friday. That's the lowest level since 2007... Vale, also the world's biggest nickel producer, faces diminishing revenue and profits after the price of iron ore collapsed last year amid a supply glut and weaker demand. The miner, which on Jan. 23 had its credit rating cut by Standard & Poor's amid growing debt burden concerns, will spend $10.2 billion in projects and operations this year, reducing cash available for shareholders. The dividend cut preserves a a sound capital structure as it completes projects at a time of lower prices (VIEW LINK)



Comments

Please sign in to comment on this wire.