Financial Review
Key points:
- Robust demand for commodities in early 2008 impacted by financial crisis
- Severe declines in base metal prices largely offset by record coal and ferrochrome contract prices
- US dollar strengthened against key operating currencies
- Real cost savings of $184 million achieved
- No significant refinancing of debt required until 2011
Relevant links
| Statutory consolidated results | |||
|---|---|---|---|
| $m |
Year ended 31.12.08 |
Year Ended 31.12.07 |
|
| Alloys | 2,002 | 1,352 | |
| Coal | 7,944 | 4,201 | |
| Copper | 11,464 | 12,794 | |
| Nickel | 3,105 | 5,252 | |
| Zinc | 3,202 | 4,726 | |
| Technology | 235 | 217 | |
| Total Group Revenue | 27,952 | 28,542 | |
| Attributable Total Group Revenue | 27,092 | 27,449 | |
| Alloys | 1,094 | 448 | |
| Coal | 4,173 | 1,194 | |
| Copper | 3,160 | 4,987 | |
| Nickel | 816 | 2,577 | |
| Zinc | 444 | 1,822 | |
| Technology | 38 | 47 | |
| Corporate and unallocated | (68) | (187) | |
| Total Group EBITDA | 9,657 | 10,888 | |
| Attributable Total Group EBITDA | 9,470 | 10,324 | |
| Alloys | 1,007 | 389 | |
| Coal | 3,549 | 690 | |
| Copper | 2,297 | 4,163 | |
| Nickel | 341 | 2,172 | |
| Zinc | 113 | 1,529 | |
| Technology | 32 | 43 | |
| Corporate and unallocated | (78) | (194) | |
| Total Group EBIT | 7,261 | 8,792 | |
| Attributable Total Group EBIT | 7,156 | 8,292 |
Basis of Presentation of Financial Information
Financial information is presented in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the European Union. The reporting currency of Xstrata plc is US dollars. Unless indicated to the contrary, revenue, earnings before interest, taxation, depreciation and amortisation (EBITDA) and earnings before interest and taxation (EBIT) are reported in the Chief Executive’s Report and the Operating and Financial Review before exceptional items. Exceptional items are significant items of income and expense which, due to their nature or expected infrequency, are presented separately on the face of the income statement.
Unless indicated to the contrary, all data and commentary in the Chief Executive’s Report and the Operating and Financial Review exclude the Xstrata Aluminium operations which were sold during the first half of 2007. All dollar and cent figures provided refer to US dollars and cents