Vale Counting on China Rebound as Profit Sinks

Vale SA, the world’s largest iron-ore miner, is counting on a rebound in Chinese economic growth to boost sales after declining prices caused it to post its lowest quarterly profit in more than two years.

Net income slumped 59 percent in the second quarter to $2.66 billion, or 52 cents a share, from $6.45 billion, or $1.22, a year earlier, Rio de Janeiro-based Vale said late yesterday. Vale was expected to post per-share profit of 73 cents excluding some items, according to the average of 12 analysts’ estimates compiled by Bloomberg.