Glencore\'s profit up as demand

Glencore International, the world\'s largest listed commodities trader, said first-quarter profit rose 47 per cent on higher prices for raw materials and stronger global demand. Net income adjusted for items increased to $1.3 billion (Dh4.77 billion), from $886 million a year earlier, the Baar, Switzerland-based company said Tuesday in a statement. Sales climbed 39 per cent to $44.2 billion, it said. Glencore completed a $10 billion initial public offering last month, selling stock in London and Hong Kong in the world\'s biggest IPO this year. Commodity trading conditions have been \"very favourable\" this half and Glencore\'s earnings potential is \"underappreciated\" by the market, Deutsche Bank AG said in a June 6 report in which the bank recommended buying the stock. \"Our first-quarter results show that Glencore continues to deliver a strong return on equity, emphasising the unique benefits of having large-scale marketing and industrial asset activities spread across a diversified commodity base,\" Chief Executive Officer Ivan Glasenberg said in the statement. Glencore, which owns plants and mines as well as trading operations, advanced 2.7 per cent to 523.4 pence in London yesterday, giving it a market value of £36.2 billion (Dh215 billion). The stock has dropped 1.2 per cent since debuting at 530 pence apiece on May 19. The company, which changed its name from Marc Rich & Co after management bought out former fugitive US financier Marc Rich in 1994, has ended more than three decades of operating as a closely held partnership. The Standard & Poor\'s GSCI Spot Index of 24 commodities rose 15 per cent in the first quarter and averaged 30 per cent higher than a year earlier. Glencore\'s net income in the fourth quarter was $1.26 billion, similar to the average quarterly result posted in the record year of 2007, it said in March. \"Glencore remains well positioned for 2011,\" the company said in today\'s statement. \"Despite the recent commodity price volatility, the directors believe that underlying fundamentals across many of our key commodities are supportive and that economic activity and demand for commodities remains healthy.\" Eurasian Natural Resources Corp, a producer of metals in Kazakhstan, advanced the most in seven months in London trading yesterday after Sunday Times said Glencore was studying a takeover offer. Glasenberg said that the company is \"not actively considering\" a bid, speaking on a conference call. Glencore said in April it planned to allocate about $5 billion from funds raised in the IPO to capital spending over three years From / Gulf News