Rio Tinto plc (ADR) (NYSE:RIO), the world’s second-biggest mining company, is now seeing iron ore trading close to $100 per metric ton. Chief Executive Officer Sam Walsh commented: “We are seeing a reduction in prices which, quite frankly, were are running at artificially high levels. We have seen the prices have come down to a more normalized level, which reflects really the point at which supply and demand cross (…) We are the lowest cost producer in the world [and prices around $100 are] truly sustainable going forward (…) We are also bringing on additional capacity which will help continue the improvements in our profitability” (Bloomberg TV).
Iron Ore Monthly Price – US Dollars per Dry Metric Toc
Novartis AG (ADR) (NYSE:NVS) posted second-quarter results today, and profits missed analyst estimates. The world’s largest drugmaker by sales reported a 2% increase in sales, to $14.6 billion, missing analysts’ projections of $14.8 billion, and a 3% upsurge in earnings, to $1.34 per share, coming short of the $1.36 per share expected by analysts.
However, the Swiss drugmaker is seeking a transformation by selling its vaccine and animal health unit, Bloomberg reported. Novartis AG (ADR) (NYSE:NVS)’s management said that the company will grow at a low to mid single-digit percentage rate for the full year.
GlaxoSmithKline plc (ADR) (NYSE:GSK) employees bribed Chinese officials and took kickbacks in 2011, to boost drug sales in the country –the company confirmed in an internal investigation. The Financial Times has also reported that GlaxoSmithKline plc (ADR) (NYSE:GSK) had also had problems with its China vaccine business in 2001, which had led to the firing of 30 employees. If the U.S. Department of Justice were to find a pattern of corrupt behavior, the sentence could be tougher, some legal experts believe.
Disclosure: Javier Hasse holds no position in any stocks or funds mentioned