Tomahawk, WI 12/04/2013 (BasicsMedia) –Companies all over the globe are struggling to turn losses into profits to varying degrees of success. Vale SA (ADR) (NYSE:VALE) is not an exception to this rule having tried for close to two years now to deliver profits without much success. Although it is the world’s largest producer of iron ore, VALE has struggled a great deal to turn its financial position around and stop being a company that only has a reputation for posting losses. It has recently posted close to $2.6 billion in profits during the third quarter, and cites several factors behind the latest success.

VALE Finally Posts Profits of more than $2.6 Billion

Investors at Vale SA (ADR) (NYSE:VALE) have been wondering if the company was ever going to post profits. The $2.6 billion and beyond that the company posted during the third quarter of 2013 is 70% higher than what it posted during the same period in 2012. It is the first time it has seen its net income increase on year on year basis since the second quarter of 2011. Many investors must now be wondering whether the increase is momentary or if it will continue in the coming quarters and months. If VALE can make this increase permanent, it will turn itself into an attractive stock.

Bloomberg Industries recently compared Vale SA (ADR) (NYSE:VALE)’s earnings per share with those of fourteen of its peers and arrived at a very interesting conclusion. The company’s earnings per share increased by 96% and this was the highest rate in the whole industry. VALE serves a wide range of steelmakers around the world with its iron ore that it mostly produces in Brazil. It says that the main reason for the profits that it has posted for the first time in two years is primarily due to its ability to cut down on costs by as much as $1.65 billion in 2013, and hopes to keep this going.

VALE Benefits from Increased Demand for Steel in Asia

However, Vale SA (ADR) (NYSE:VALE) has also benefited from a number of factors that are completely out of its control. An example is the huge demand for steel that is currently going on in Asia. This huge demand has enabled VALE to benefit from better prices for iron ore and steel that has been replicated in the company’s financial results for the third quarter of 2013. At the beginning of the year, analysts expected the price of steel to average $121 per ton, but the industry now boasts of a price of $32.5 billion. This rate is higher than last year’s by as much as eighteen percent.

Vale SA (ADR) (NYSE:VALE) mostly serves the rest of the world with its iron ore, copper and nickel. It announced hat it expects to see an improvement in the production of these three products, hoping that when this happens, it will report better financial results than what it has done during this quarter. However, not everything has gone on well for Vale SA (ADR) (NYSE:VALE) this year. It has seen its shares lose by as much as eighteen percent, which is the worst out of its main rivals, Rio Tinto Group and BHP Billiton Ltd. This not so good for VALE, bearing in mind that it is the world’s third largest mining firm.

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