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July 26 (Bloomberg) --Vale SA (VALE5), the world’s largest iron-ore miner, headed towards the longest losing streak in 17 years after profit fell more than forecast on slumping iron-ore prices, dimming chances of an extraordinary dividend payment.
Vale, based in Rio de Janeiro, dropped 1.3 percent to 34.68 reais at 2:22 p.m. in Sao Paulo. A close at the level would be the lowest since Sept. 14, 2009, and a 10-day losing streak the longest since February 1995. The Brazilian benchmark Bovespa Index rose 1.5 percent.
Vale said yesterday that second-quarter net income slumped 59 percent to $2.66 billion, or 52 cents a share, missing a per- share profit estimate of 73 cents excluding some items in a Bloomberg survey. Vale sees a “less exciting” outlook for extraordinary dividends this year, Chief Executive Officer Murilo Ferreira told analysts today on a conference call.
“We had a pretty strong year last year, we would like to establish the same this year but with the scenario we are working with, that won’t be possible,” he said. “We continue focusing on a very reasonable dividend policy and we should announce the 2013 dividend in the last quarter.”
Vale last year paid a record $9 billion to shareholders, more than double its initial target, and bought back $3 billion worth of stock after investment fell short of initial plans. The company said on Jan. 16 said it will pay at least $6 billion of dividends this year.
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