Vale Cost Cuts Paying Off as Earnings Surprise Analysts
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Vale SA surged the most in more than six months in Sao Paulo trading after recurring earnings topped estimates, signaling that efforts to cut costs and delay projects is paying off.
Vale, the biggest iron-ore company, had third-quarter recurring earnings before interest, taxes, depreciation and amortization of $4.28 billion, surpassing estimates from analysts including Banco Itau BBA SA and Banco BTG Pactual SA. The stock rose 5.6 percent to 36.20 reais at the close, the most since April 12. Brazil’s Bovespa index rose 1.2 percent and a measure of iron-ore prices traded at a three-month high.