OAO Norilsk Nickel, Russia’s largest mining company, reported 2011 profit below analyst estimates on higher production costs and a loss from discontinued operations.
Net income was $3.6 billion compared with $3.3 billion a year earlier, Norilsk said today on its website. Excluding a $560 million loss on the disposal of utility OAO OGK-3, profit would be $4.18 billion, it said. That’s less than the $4.67 billion median estimate of 12 analysts in a Bloomberg survey.
Cash operating costs rose 16 percent to $4.62 billion on higher expenses for metals purchases and labor costs, outpacing sales growth, Norilsk said. Revenue grew 11 percent to $14.1 billion, with nickel accounting for half of metal sales.
Earnings before interest, taxes, depreciation and amortization rose 0.4 percent to $7.24 billion, it said.
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