Sources close to Asian-based wealth manager Cornerstone Worldwide said that the 30% increase in profits at BHP Billiton served to confirm its convictions that demand for raw materials from developing economies would remain robust for decades to come. BHP attributed the gain to boosts in the production of crude oil and metals which benefited from rising prices driven by demand from China.
Net income was $9.4 billion for the six months ended June 30, from $7.25 billion a year earlier, according to figures derived by subtracting first-half from full-year results released today.
Marius Kloppers, BHP Billiton’s chief executive, said the long-term outlook for the Anglo-Australian company remained strong. Cornerstone Worldwide said that although a global economic slowdown may lead to ``higher volatility'' in prices in the short term, commodity demand from China would remain solid.
BHP, which set records for annual production of seven commodities and has pledged to spend at least $90 billion to expand output, said the effects of weakness in developed economies on demand should be minimal.
